The Ministry of Labor recommended not to enter into employment contracts with relocants – Kommersant

The Ministry of Labor announced the inadmissibility of concluding an employment contract on remote work with citizens who are outside Russia. The newspaper writes about this “News” with reference to a letter from ministry representative Dmitry Mylnikov.

The press service of the Ministry of Labor explained to Izvestia that other countries have different tax standards, labor protection requirements, as well as conditions for ensuring social and health insurance. The ministry clarified that companies can enter into a civil law agreement with citizens who are not in Russia, taking into account local and foreign laws.

The subordinate, as the newspaper reports, is not obliged to notify the employer about obtaining residency in another country. However, the organization has the right to request this information to “correctly determine its tax status.”

Experts interviewed by Izvestia reported that the Labor Code contains no restrictions for relocants. According to the law, the Ministry of Labor cannot prohibit employers from concluding work contracts with citizens who have left the country, the newspaper writes.

On July 21, the State Duma adopted the law on taxes for relocants in the third reading. It applies to citizens who work in a Russian company under an employment contract, but are in Russia for less than 183 days a year. From January 1, 2024, their income will be taxed at a standard rate of 13–15% even after losing Russian tax residency.

Read more in the Kommersant FM article. “Relocants have been made equal to residents”.

Petr Buzlaev