For the period 2022-2024, a special procedure for accounting for exchange rate differences was introduced: exchange rate gains in 2022-2024 and exchange rate losses in 2023-2024 should only be accounted for as soon as the relevant claims (liabilities) are terminated (fulfilled) [i].

At the same time, adjustments were introduced to the provisions of the procedure for accounting for exchange rate differences at the end of 2022 [ii]. For exchange rate losses that arose in 2022 from claims (liabilities) that were not terminated as of December 31, 2022, it was permitted to choose the accounting method: the old method (as of the last day of the current month) or the new method – as of the date of termination (fulfillment) of the claim (liability).

If a taxpayer decides in 2022 to apply the new procedure for accounting for exchange rate differences, it is necessary: to introduce a change in the accounting policy for taxation purposes, to notify the tax inspectorate in an arbitrary form about the choice of the procedure for accounting for exchange rate differences not later than at the date of filing the tax return for 2022, that is, before March 27, 2023 (including), or at the date of filing the corrected return for the last accounting period in 2022.

It is also established that if, due to the new procedure for accounting for exchange rate differences, the advance income tax payments for the accounting periods in 2022 increase, no penalties will be charged (provided that income tax for 2022 is paid on time).

From the standpoint of the Federal Tax Service [iii], considering the fact that applying the new procedure for accounting for exchange rate losses in 2022 [iv] does not lead to accrual of penalties for late fulfillment of the obligation to make advance payments, recalculation of the exchange rate losses can be reflected in the tax return for 2022 once, without filing corrected returns for the accounting periods in 2022 (quarter, half a year and 9 months).

[i] Federal Law No. 67-ФЗ of March 26, 2022

[ii] Federal Law No. 523-ФЗ of December 19, 2022

[iii] Letter of the Federal Tax Service No. СД-4-3/2369@ of March 01, 2023

[iv] Clause 6.2, Clause 7, Article 272 of the Tax Code of the Russian Federation

Accounting Foreign currency Profit tax Reporting Tax declarations