State Tax Service reminds of the importance of maintaining currency discipline in the foreign economic activity sphere

Absence of tax notifications-decisions regarding violation of payment deadlines for export-import transactions during the last 12 months is one of the conditions for obtaining status of a taxpayer with a high level of compliance with the law.

Compliance with currency legislation conducting foreign economic activities is also important factor in forming the payer’s positive tax history.

It should be reminded of the basic rules for observing currency discipline in the foreign economic activity

1. Timely receipt of the foreign exchange earnings from export.

Settlements for export of products and services must be completed within deadlines specified by the law.

2. Timely receipt of products and/or receipt of services under import transactions.

In the case of advance payments for import transactions, products must be imported and services must be provided and documented within the established deadlines.

3. Submission of supporting documents to the servicing bank in full and within the specified time limits.

Contracts, invoices, certificates of performed work, customs declarations and other documents are obligatory for currency supervision and must be submitted without delay, as the banks carry out currency supervision. 

4. Prompt response to the bank requests.

Timely provision of information and documents allows to avoid generating notifications about violation of payment deadlines.

5. Risk-based approach to control and audit work of the State Tax Service.

Notifications from the banks about violations of currency legislation are one of the criteria for tax risk and may become basis for control and verification measures.

Compliance with currency discipline in the foreign economic activity:

- reduces number of notifications from the banking system;

- minimizes administrative burden on business and regulatory authorities;

- contributes to formation of the positive tax history;

- is important condition for obtaining and maintaining status of the taxpayer with a high level of compliance with tax legislation.