The State Duma adopted a law on a single personal income tax rate for remote employees

The State Duma adopted a law on the implementation of the main directions of tax and monetary policy, which, among other things, determines the personal income tax rate for remote employees and freelancers. This should from the Duma electronic database.

The amendments assume that from January 1, 2024, Russian companies will collect personal income tax from their “remote” employees at a base rate of 13-15%, even if they have lost their tax residency in the Russian Federation. Also, this rule applies to those who provide services for companies under a civil law contract. In this case, the new rules can come into effect from 2025.

It is necessary that one of the conditions be met – the contractor receives remuneration to an account in a Russian bank or payments are made by Russian companies or separate divisions of foreign organizations in Russia.

According to Deputy Finance Minister Alexei Sazanov, the bill equalizes personal income tax for residents and non-residents and keeps tax conditions unchanged for employees who work remotely using the Internet.

In addition, the bill provides for a number of amendments to the Tax Code and other legislative acts of Russia. The explanatory note states that it was prepared in order to implement certain provisions of the main directions of the budgetary, tax and customs tariff policy of Russia, as well as in order to fulfill certain government instructions regarding tax administration, VAT, personal income tax, international taxation, special tax regimes, etc.