From January 1, 2024, comprehensive changes to the Russian Tax Code will come into effect, which also affect the taxation of remote workers and freelancers.
The personal income tax (PIT) rate for employees working remotely under employment contracts and civil law contracts with Russian organizations will be set at 13-15%, regardless of tax residency status.
If an individual's income is less than 5 million rubles per year, the tax rate will be 13%. If an income exceeds 5 million rubles per year, the rate will be 15%.
According to explanations from Deputy Minister of Finance Alexey Sazanov, these changes are primarily aimed at simplifying the activities of tax agents.
Nadmitov, Ivanov & Partners Law Firm advises on tax law matters.
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