The Ministry of Finance proposed to collect 13-15% personal income tax from Russians working abroad

The Ministry of Finance proposed to collect 13-15% personal income tax from Russians working abroad

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The Ministry of Finance proposes to levy personal income tax at standard rates of 13-15% on the earnings of those Russians who, having moved abroad, have lost their tax residency in Russia, but still remain a full-time “remote” employee, and a number of freelancers working for Russian customers.

According to Interfax, the corresponding proposals are contained in the government bill, corrected after the recall from the State Duma.

The document was withdrawn due to the need to supplement it with norms on improving the institution of a single tax account. As stated by the head of the Ministry of Finance of the Russian Federation Anton Siluanov, the department wants to equalize the principles of taxation for citizens working both in Russia and abroad when changing the document.

Deputy Finance Minister Aleksey Sazanov noted that the new version of the bill resolved the issue of taxing remote workers working with organizations both under labor contracts and under GPC agreements. According to him, regardless of their tax status, their income will be subject to personal income tax rates of 13-15%, provided for Russian tax residents.

As noted, the unified rules were proposed because it is difficult for companies to check whether their remote employee is a resident of Russia or not.

According to the proposals of the Ministry of Finance, from January 1, 2024, Russian companies-employers should collect personal income tax at a base rate of 13-15% from the remuneration of their full-time “remote” employees, even after they lose their tax residency in Russia.

Source: Rosbalt

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