The Russian Federal Tax Service Increases Scrutiny of Russian individuals’ Accounts and Companies in the UAE
The Federal Tax Service (FTS) is increasingly obtaining information about Russian individuals’ bank accounts in the UAE and companies registered there. At risk are owners of controlled foreign companies (CFCs) and personal accounts who have not declared these assets to their local Russian tax authorities.
It is important to remember that a UAE residency visa does not protect against automatic information exchange with Russia. Banks in the Emirates provide data if there are grounds to believe that the beneficiary has ties to Russia.
We recommend that, if you spend more than 183 days per year in Russia, you:
- Notify the tax authorities about the establishment of a UAE company within 3 months;
- Submit annual notifications regarding CFCs;
- Declare foreign accounts (notify within 1 month of opening/closing and submit an annual report).
Failure to disclose assets on time may result in fines and tax claims.
