Capital amnesty is a process that allows individuals to disclose information about their foreign assets (real estate, assets on the bank accounts and securities), but at the same time these persons are protected from the tax, administrative, criminal liability (that could be related with these hidden assets).

In Russia we have been looking on this process in different forms during last 4 years since the first wave of capital amnesty was launched in June 2015. After first phase FTS had collected more than 7 thousand tax returns of individuals. The second wave of the amnesty began in March 2018, and the third wave in March 2019.

The third wave of capital amnesty provides citizens almost the same guarantees as before, however, in some points the conditions have become tougher: before march of 2019 individuals were required to close foreign companies and cease operations abroad, but now, in accordance with the new rules, individuals should re-register their companies in the special zones in Russian Federation, and these holding structures should continue their functioning.

According to analysts, the third wave of capital amnesty probably will be successful. There are some reasons for that: financial control of individuals’ assets abroad become strict, authorities of offshore zones require to open real companies’ offices and hire employees – the residence in offshore zones have become not so attractive.

At the same time, it’s important to understand that the risk assessment and the proper declaration of assets during the capital amnesty is a long and hard process, because of the latest legislative novation and features of law enforcement practice.

Horizon Global specialists have many years of extensive practice in this field, we will help you to develop the most appropriate strategy for you and ensure the high level protection of your rights.