Amendments were made to the Tax Code of the Russian Federation, which established personal income tax rates for employees working remotely for Russian employers and who have lost the status of a tax resident of the Russian Federation at the level of 13% and 15%.
Previously, companies had to independently determine the tax rates for remote workers, depending on the specific situation. Now, regardless of the tax residency status of remote employees, a flat tax rate of 13%-15% will apply to them.
Other important amendments to the Tax Code of the Russian Federation (about 150 in total):
- Tour operators were exempted from VAT on the sale of tours in Russia until 30 June 2027;
- Personal funds are entitled to apply a rate of 15% subject to a 90% share of certain incomes;
- Institution of electronic bank guarantee has been introduced;
- Individual entrepreneurs can use the taxpayer's personal account;
- The limit of expenses for the acquisition or creation of a unit of goods, works or services transferred for advertising purposes and exempt from VAT has been increased;
- Parents of disabled children can receive a standard personal income tax deduction;
- The maximum value of non-taxable compensation payments to remote workers is set at 35 rubles. for each day of performing a labor function remotely.
See Federal Law No. 389-FZ, dated 31 July 2023, “On Amendments to Parts One and Two of the Tax Code of the Russian Federation, Certain Legislative Acts of the Russian Federation, and on the Suspension of Paragraph Two of Clause 1 of Article 78 of Part One of the Tax Code of the Russian Federation”
Nadmitov, Ivanov & Partners Law Firm advises clients on tax matters.
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