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Foreign e-wallets: why the Federal Tax Service requires reports

· · The Ateo Digital editorial team

Since July 1, 2020, individuals who are tax residents of the Russian Federation have been required to report to the Federal Tax Service (FTS) not only on foreign bank accounts, but also on accounts with foreign payment service providers — including electronic wallets such as Wise, Revolut, PayPal, Payoneer, and similar services. The obligation is established by the federal law “On Currency Regulation and Currency Control” (173-FZ) and закреплена by Russian Government Resolution No. 1365.

Reporting on electronic wallets has one important feature: a threshold of 600,000 ₽ per calendar year. If the amount credited during the year does not exceed this threshold, no wallet report is required. There is no similar threshold for bank accounts held by resident individuals — a report is filed regardless of turnover.

Below: what the FTS considers a “foreign electronic wallet,” which operators are covered, how the report is prepared, and what penalties are provided.

In short

  • The obligation to report foreign electronic wallets has been in force since July 1, 2020.
  • The reporting threshold is 600,000 ₽ in total credits for a calendar year (in the equivalent amount at the Central Bank exchange rate on the transaction date).
  • The filing deadline is June 1 of the year following the reporting year (as with bank accounts).
  • A “foreign payment service provider” is an operator that does not have a Bank of Russia license. Wise, Revolut, PayPal, and Payoneer fall under the definition.
  • The fine for failure to file is under Article 15.25 of the Code of Administrative Offences of the Russian Federation (up to 5,000 ₽ for an individual, up to 10,000 ₽ for a repeat offence).
  • Additionally, there is a fine of 20–40% of the amount of a transaction carried out in violation of currency legislation (Part 1 of Article 15.25).

What this obligation is: the mechanics

Law 173-FZ classifies electronic wallets as “electronic means of payment provided by foreign payment service providers.” The FTS publishes explanations in the section “Reports by individuals on the movement of funds”. Updates are posted in the “Activities of the Federal Tax Service of Russia” news section.

What counts as a “foreign” wallet

An electronic wallet is considered foreign if it is opened with an organisation that is not a Russian bank or a non-bank electronic money institution licensed by the Bank of Russia. The operator’s jurisdiction, the geographic location of its servers, and the account currency do not matter — the criterion is specifically the absence of a Russian license.

Which common services are covered

Wise (formerly TransferWise) is a British operator and is covered. Revolut is British / Lithuanian and is covered. PayPal is a foreign operator and is covered. Payoneer is covered. Skrill and Neteller are covered. ЮMoney and QIWI (during its period of operation) are Russian and are not covered by the obligation under 173-FZ. Crypto wallets are a separate category to which the rules of 173-FZ do not directly apply; their regulation is built under separate laws on digital financial assets.

How the 600,000 ₽ threshold is calculated

All credits to the wallet during the calendar year are added together. Each transaction is converted into roubles at the Central Bank of Russia exchange rate on the credit date. If the annual total exceeds 600,000 ₽, a report for that wallet is mandatory. If it is below the threshold, no report is filed.

How to file

Through the taxpayer’s personal account on the FTS website. Electronic wallets are entered in the same form as bank accounts, in a separate section. Documents confirming the movement of funds are attached to the report — a payment system statement.

Deadlines and penalties

SituationWhat is providedProvision
Filing deadlineBy June 1 of the year following the reporting yearRussian Government Resolution No. 1365
Filing thresholdCredits of more than 600,000 ₽ during a calendar yearClause 7 of Article 12 of 173-FZ
Delay of up to 10 daysFine of 300–500 ₽Part 6 of Article 15.25 of the Code of Administrative Offences of the Russian Federation
Delay of 10–30 daysFine of 1,000–1,500 ₽Part 6.1 of Article 15.25 of the Code of Administrative Offences of the Russian Federation
Delay of more than 30 daysFine of 2,500–3,000 ₽Part 6.2 of Article 15.25 of the Code of Administrative Offences of the Russian Federation
Failure to fileFine of 4,000–5,000 ₽Part 6.3 of Article 15.25 of the Code of Administrative Offences of the Russian Federation
Prohibited currency transaction through a walletFine of 20–40% of the transaction amountPart 1 of Article 15.25 of the Code of Administrative Offences of the Russian Federation

How to check right now

To understand whether you need to file a wallet report, calculate the total credits for the previous calendar year in roubles at the Central Bank exchange rate on the date of each transaction. If the total for a specific wallet exceeded 600,000 ₽ and you were a tax resident of the Russian Federation, the report is mandatory.

Current explanations and form updates are on the FTS page. Business media publish analyses of practice — for example, Forbes and Kommersant (Коммерсантъ).

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Warning signs vs false alarm

Electronic wallets do not automatically transmit data to the Russian tax authority. But information may reach the FTS through automatic exchange of financial information (for jurisdictions that continue this exchange with the Russian Federation), through requests to a bank, through information from payment systems during transactions in the Russian Federation, or through analysis of income tax returns.

The mere existence of a wallet is not an offence. The offence is violating the reporting procedure or carrying out prohibited currency transactions bypassing authorised banks.

What to do next

  • Export full statistics for each foreign wallet for the previous calendar year.
  • Calculate total credits in rouble equivalent at the Central Bank exchange rate.
  • Determine which wallets fall under the reporting obligation (more than 600,000 ₽).
  • Prepare the report through the taxpayer’s personal account at nalog.gov.ru.
  • Keep statements and transaction confirmations — they may be needed during a tax audit.
  • If the situation is complex, contact a tax consultant.

Conclusion

Reporting on foreign electronic wallets is part of currency control, separate from taxation of income. The 600,000 ₽ threshold makes it optional for most users with small turnover, but once the amount credited during the year exceeds the threshold, the obligation arises automatically. Filing through the personal account takes less than an hour, and fines for violations are charged for each year.

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