The government withdrew the bill on 30% personal income tax for freelancers who left

The government withdrew from the State Duma a draft amendment that would increase personal income tax for those working from abroad without an employment contract. According to the press service of the government, “a number of technical clarifications” will be introduced into the bill.

The bill, introduced yesterday, April 24, assumed that the tax at a rate of 30% would be paid by some Russians who left in the event of loss of tax residency – that is, if a person is abroad for more than 183 days within 12 months. It was only about those working under a civil law contract. The amendments did not apply to the self-employed and those working under an employment contract.

“Yes, we do. A number of technical clarifications must be made to the bill before it is sent to the State Duma,” the government’s press service told TASS.

Now payments from Russian companies to non-residents for remote work are not subject to personal income tax. If the remote worker is a resident, he must declare income in the 3-personal income tax form and pay tax to the budget on his own.

The amendments made assumed that from 2024, income from a source in Russia will include payment received by individuals for the performance of work if the activity is carried out using the Russian segment of the Internet. This would make it possible to attribute payments for remote work performed using the “Russian” part of the Internet to income from Russian sources, respectively, they would become subject to personal income tax.

Read more in the material “Individual income tax after”.

Anastasia Larina