Putin signed a law on a single personal income tax rate for remote employees
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Russian President Vladimir Putin signed a law that sets the personal income tax rate at 13% or 15% for employees working from abroad. Document published on the portal of legal information.
According to the adopted law, from January 1, 2024, employees working remotely will be charged personal income tax at a base rate of 13%, even if they lose their Russian tax residency. If their income exceeds 5 million rubles. per annum, the rate will be 15%. The new rules also apply to freelancers. For them, the norm will come into force in 2025.
To pay the tax, one of the conditions must be met: the contractor receives funds to an account in a Russian bank or payments are made by Russian companies or separate divisions of foreign organizations in Russia. Tax residency is lost when you are outside the country for more than 183 days per year.
According to Deputy Finance Minister Alexei Sazanov, the initiative equalizes personal income tax for residents and non-residents and keeps tax conditions unchanged for employees who work remotely using the Internet.
Draft law on a single rate of personal income tax was accepted State Duma on July 21. The Federation Council approved the law on July 27.
On April 24, the government submitted to the State Duma bill, according to which Russian companies must charge 30% personal income tax on the income of employees working from abroad if they use the domestic segment of the Russian Internet or hardware and software and hardware. This rate was planned to be applied in case of loss of tax residency. However, on April 26, the bill was withdrawn.
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