Clarifications were given on the issue of the legality of crediting funds from non-residents to foreign accounts of residents under lease agreements.

It is reported, in particular, that paragraph two of part 5 of article 12 of the Federal Law dated December 10, 2003 N 173-FZ “On Currency Regulation and Currency Control” (hereinafter referred to as Federal Law N 173-FZ) allows the transfer of funds in foreign currency and the currency of the Russian Federation to resident's accounts in foreign banks under foreign trade agreements (contracts), in respect of which the requirement for repatriation was cancelled. According to Part 8 of Article 19 of the Federal Law N 173-FZ, such foreign trade agreements (contracts) include, among other things, contracts providing for the rendering of services to non-residents, the amount of obligations for which is determined in foreign currency and (or) the terms of which provide for payment in foreign currency.

Thus, resident individuals, including individuals registered as individual entrepreneurs, who have entered into a lease agreement with non-residents for real estate located both in Russia and abroad, including residential real estate, have the right on the basis of paragraph two of Part 5 of Article 12 of the Federal Law N 173-FZ to credit funds due under such agreements to their accounts in foreign banks.

Document: Letter of the Federal Tax Service of Russia dated March 07, 2024 N ShYu-4-17/2605@ “On the legality of crediting funds from non-residents to foreign accounts of residents under lease agreements.”