Armenian financial institutions—banks and brokerage firms—have begun requesting their Russian clients to confirm their tax residency status. This is reported by RBC.
As the publication clarifies, this measure is related to the transition to automatic data exchange with the Russian side. Armenian institutions will now annually send information about Russian clients to the Russian Federal Tax Service (FTS). The first such automated exchange is scheduled for September, whereas previously, data was provided only upon request.
According to Frank Media, confirmed by a source in Armenia's financial market, local regulators have already sent out the relevant requirements. If Russian account holders do not provide the requested information, servicing of their accounts may be temporarily suspended.
The automatic exchange will be carried out in accordance with the CRS standard. Armenia ratified the multilateral agreement on such exchange in 2023 and implemented it starting in 2024. Russia joined CRS in 2016, beginning automatic information exchange in 2018.
According to explanations from the law firm NSV Consulting, if a Russian opened an account in Armenia in 2024 or earlier, the first data exchange will cover transactions conducted during the 2024 reporting year, and these should be given particular attention.
Under Russian tax legislation, an individual is considered a resident if they are present in the country for at least 183 days during the year. Similar criteria apply in Armenia. At the same time, Russians are required to inform the FTS about opening accounts abroad.