[SEEING THE MAIN] Bank transfers between citizens are not regarded as income automatically

Bank transfers between citizens are not regarded as income automatically according to the statement of the Federal Tax Service of Russia (letter No. MMV-17-2 / 162 dated June 27, 2018) apparently in response to rumors as to imposition of personal income tax on recipients under such transfers.

In the letter, the Federal Office confirms that changes to the Tax Code valid since July 01, 2018 do not include this matter, and there is no information on legislative initiatives to expand the powers of tax authorities for control of people’s receipts in bank accounts.

All receipts in accounts or bank cards of individuals cannot be unequivocally regarded as income and, accordingly, taxed in terms of individual income tax. Thus, the information on taxes and fines on receipts in accounts and bank cards of citizens, as well as changes to the legislation on taxes and fees is not true according to the document.