Russia cooks up a tax policy shakeup 💸

Russia’s Finance Ministry has drafted legislation that would free Russian civilians permanently living abroad from requirements to report their accounts in foreign banks. The new exemption would apply to anyone who spends more than 183 days in a calendar year outside the country. The law would also extend “currency residency” status to all Russian citizens, regardless of how long they spend in other countries.

Currently, Russians shed their “currency residency” status after living more than 365 consecutive days abroad, though the status returns, as soon as they set foot again in Russia. Currency residents are required to report all foreign bank accounts and asset flows, and cannot use these resources for certain purposes, such as selling real estate or allocating grants. People who violate these rules face steep fines.