The State Duma adopted a law on taxation for workers from abroad

The State Duma adopted in the third reading amendments to the tax code. They provide for the establishment of a rate of 13% and 15% personal income tax (PIT) for employees working for Russian companies from abroad, even if they lose their tax residency.

Among other amendments in this package (there are about 150 in total) are the adjustment of a new mechanism for a single tax account, the expansion of the practice of pre-trial appeal against decisions of tax authorities, the elimination of tax consequences when transferring property to personal funds and vice versa, and reducing the income tax rate for them from 20% to 15%.

Now companies registered in Russia need to independently determine the tax rate for “remote workers”, depending on each specific situation. The amendments were designed to set a single tax rate of 13-15% for remote employees regardless of their tax residency status. This is due to the fact that when a company works remotely, it is difficult to check whether their employee was a Russian tax resident or not.

The amendments were submitted to the State Duma on April 24. It was assumed that for employees who lost their tax residency (if they work from abroad for more than 183 days within 12 months), the personal income tax rate will be 30%. The amendments concerned those who work under the GPC agreement. The next day, the project was withdrawn for technical clarifications.

Now payments from Russian companies to non-residents for performing remote work in another state are considered income received from sources outside Russia. They should not be subject to income tax. If the remote worker is still a resident, he must independently declare income in the 3-NDFL form.

Read more about the bill – in the publication “Kommersant” “The capitals have included a preferential transfer”.

Anastasia Larina