Employers of the Russian Federation will no longer pay income tax for foreign remote employees
The Ministry of Finance of the Russian Federation has sent a proposal to the tax authorities to release employers from personal income tax with payments to remote foreign employees. The remote worker lives abroad and therefore no deductions should be charged to their salary. The ministry set out these considerations in a letter signed by the deputy director of the customs and tax-tariff policy department of the Ministry of Finance of Russia Olga Tsibizova.
If foreign employees come to Russia for some time, they should not reside in the territory of the Russian Federation for more than 183 calendar days. Otherwise, they will be considered tax residents of the Russian Federation and the employer will have to pay deductions from their salaries. According to Tsibizova, employers in this situation are not recognized as tax agents and they cannot be charged with the responsibility for calculating, withholding and paying personal income tax amounts from the wages of such remote workers.
“Since in this case, individuals perform work in the territory of a foreign state, the remuneration they receive for fulfilling their job duties relates to income from sources outside the Russian Federation. Thus, with respect to the incomes of the organization’s employees in the form of wages received from sources outside the Russian Federation, the employing organization is not recognized as a tax agent. Such an organization cannot be charged with the duties envisaged for tax agents, ”explains Tsybizova.
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The press service of the Ministry of Finance clarifies that in this case, the foreign employee in his own country will have to “pay the national income tax, the rate of which is likely to be higher than the Russian one”.
“Previously, there could be a misunderstanding with the definition of the source of income payment if the salary is paid by a company registered and operating in the territory of the Russian Federation,” admits Head of Legal Department of Heads consulting company Diana Maklozyan. Now the employer will get rid of the need to fill out 2-NDFL certificates.
However, innovation can not spread to all categories of citizens working abroad.
“Regardless of the actual time spent in the Russian Federation, tax residents of the Russian Federation are recognized as Russian military personnel serving abroad, as well as employees of state and local government bodies assigned to work outside the Russian Federation. But in general, it turns out that it is more profitable for companies to hire freelancers than Russians, because they greatly simplify the maintenance of tax and accounting reports, ” Anton Sonichev, a lawyer of Delovoy Fair, explained to Izvestia.
If foreign employees come to Russia for some time, they should not reside in the territory of the Russian Federation for more than 183 calendar days. Otherwise, they will be considered tax residents of the Russian Federation and the employer will have to pay deductions from their salaries. According to Tsibizova, employers in this situation are not recognized as tax agents and they cannot be charged with the responsibility for calculating, withholding and paying personal income tax amounts from the wages of such remote workers.
“Since in this case, individuals perform work in the territory of a foreign state, the remuneration they receive for fulfilling their job duties relates to income from sources outside the Russian Federation. Thus, with respect to the incomes of the organization’s employees in the form of wages received from sources outside the Russian Federation, the employing organization is not recognized as a tax agent. Such an organization cannot be charged with the duties envisaged for tax agents, ”explains Tsybizova.
')
The press service of the Ministry of Finance clarifies that in this case, the foreign employee in his own country will have to “pay the national income tax, the rate of which is likely to be higher than the Russian one”.
“Previously, there could be a misunderstanding with the definition of the source of income payment if the salary is paid by a company registered and operating in the territory of the Russian Federation,” admits Head of Legal Department of Heads consulting company Diana Maklozyan. Now the employer will get rid of the need to fill out 2-NDFL certificates.
However, innovation can not spread to all categories of citizens working abroad.
“Regardless of the actual time spent in the Russian Federation, tax residents of the Russian Federation are recognized as Russian military personnel serving abroad, as well as employees of state and local government bodies assigned to work outside the Russian Federation. But in general, it turns out that it is more profitable for companies to hire freelancers than Russians, because they greatly simplify the maintenance of tax and accounting reports, ” Anton Sonichev, a lawyer of Delovoy Fair, explained to Izvestia.
Source: https://habr.com/ru/post/294696/
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