Putin signs law on extension of capital amnesty for Russian businesses

Putin signs law on extension of capital amnesty for Russian businesses
Russian President Vladimir Putin has signed a package of laws extending a capital amnesty until February 28, 2019. It allows Russians to voluntarily declare assets and accounts in banks.

A total amnesty for all funds returning to Russia follows an anti-offshore bill requiring individuals and businesses to report foreign profits. The bill was aimed at curbing the outflow of capital from Russia, which was estimated at over $2 trillion in recent years.

The bill was explained by Deputy Prime Minister Igor Shuvalov as allowing people who have made any mistakes in their business activities to declare the property and become completely law-abiding citizens.

The laws were earlier adopted by both chambers of the Russian parliament.

It’s the second stage of the capital amnesty, which commenced in March 2017. In this case, special declarations can be submitted both by individuals who haven’t done that before, and those who participated in the first stage.

According to the documents, published on the official portal of legal information, all the guarantees for those who used the amnesty of capital in the first stage in 2015-2016 will be fully preserved.

Putin said earlier that the extension of capital amnesty, which is supported by international financial institutions, will add stability to the Russian business environment.

Voluntary declaration of assets and accounts in banks has started in Russia from June 1, 2015. Individuals had the right to submit to the tax authorities a special declaration with the information about the property, controlled foreign companies, accounts in banks located outside Russia. That could be done in exchange for exemption from tax, administrative and criminal liability for tax and customs duties payment evasion and failure to comply with laws on currency regulation and currency control. The amnesty covers all revenues, operations and transactions related to overseas assets and accounts.

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