13% INCOME TAX FOR FOREIGNERS

A draft law has been published providing that the income of foreigners working in Russia shall be taxed with 13% personal income tax, regardless of their tax residency.

Currently, foreign employees normally pay 30% personal income tax, and the 13% personal income tax applies to:

– Russian tax residents (Russian and foreign citizens staying in Russia more than 183 days a year);
– foreign employees having the status of Highly Qualified Specialists (please read more about HQS here );
– citizens of some former Soviet countries.

If the draft law will pass, Russian residents and non-residents will enjoy personal income tax at the rate of 13%.