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Attention to: Taxpayers ? individuals!


According to the Tax Code of the Russian Federation individuals are subject to personal income tax on their earnings.

Almost all earnings received by individuals are levied on by personal income tax: wages, benefits and allowances, income received from sale or lease of real estate or means of transport, income from sale of securities, dividends and interest, income received from conducting of business activity and private practice, etc. Individuals - Russian citizens and foreign citizens, who reside on the territory of the Russian Federation more than 183 days in a year (tax residents), should pay personal income tax on their world-wide income, and individuals who reside on the territory of the Russian Federation less than 183 days (tax non-residents) should pay personal income tax only on income received from sources in the Russian Federation.

13 % tax rate is imposed on income received by tax residents, whereas income received by tax non-residents is taxable at 30 % tax rate (*).

Income received by an individual as well as calculation of personal income tax? amount are to be declared.

Individuals who work in the Russian Federation on labor contract and who have the only source of income ? their wages and different benefits/compensation, may not file tax declarations to the tax authorities. Declaration of such income, calculation of tax amount, its withholding from wage and remittance of tax amount to the budget is made by their source of payment.

Individuals, who receive other kinds of income and whose source of payment does not withhold tax amount from their income, are to declare them, calculate and pay to the budget appropriate tax amount. In case an individual does not declare his/her income and does not pay tax amount, tax authorities are entitled to calculate tax amount and to remit it to the budget by administrative means.

Filing of a tax declaration is also necessary if an individual would like to return a part of tax amount paid to the budget. Such tax deductions are provided for those tax residents who?ve had the following expenses:

  • expenses on new construction or purchase of apartments/houses in Russia
  • expenses on payment of interests on mortgage credit in Russia
  • expenses on charitable contributions in Russia
  • expenses on education or on education of children in Russia
  • expenses on medical treatment or medicine in the Russian Federation.

    Personal tax declaration is to be filed to the tax authorities of the Russian Federation not later than April 30.
    Payment of personal income tax is to be made not later than July 15. (**)

    VFBS is pleased to provide You services of preparation of tax declaration, filing of tax declaration to the tax authorities and presentation of Your interests in the tax authorities.

    Sincerely Yours,
    VISTA Foreign Business Support

    * Some kinds of tax residents? income are levied on 6 % and 35% tax rate.
    ** Individuals who conduct business activity or has private practice in the Russian Federation should also make advance payments of personal income tax during a year.

    See more:
    - 2015: Changes to the immigration legislation
    - Starting 12 December 2014 new labour regulations for foreign workforce
    - Dear All

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    Moscow, 109147, Russian Federation
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