De-Offshorization and Capital Amnesty in RussiaDe-Offshorization and Capital Amnesty in Russia

Russia recently adopted two new laws: (1) the De-Offshorization Law, which makes a number of major changes in the existing system of corporate and personal taxation in Russia; and (2) the Capital Amnesty Law, which offers capital amnesty through a voluntary declaration program. These two new laws may affect U.S. wealth management professionals dealing with Russian markets.

A Brief History

The capital amnesty that started in Russia on July 1, 2015 is considered a milestone in the de-offshorization campaign, launched by the country’s leadership several years ago. The origins of this campaign can be traced to the annual presidential address to the Federal Assembly (the nation’s Parliament), delivered on Dec. 12, 2012.¹ Recalling that Russian...