State Duma to consider bill on 30-percent income tax withholding for Russians working from abroad
A new bill on taxing remote workers has been submitted for consideration by Russia’s State Duma. If passed, it’ll require employers to withhold 30 percent of the income earned by employees considered tax non-residents in Russia. Russians working abroad but maintaining their resident status will be taxed at the base rate of 13–15 percent.
According to the proposal, the new rules would become effective starting January 1, 2024, and would apply to all workers employed by corporations registered in Russia, using Russian domain names ending in the “.ru” domain extension, or otherwise operating on the domestic market and relying on the Russian banking system.
Under the proposed regulation, determining which tax rate should be applied to any given employee would be left to the employer, Interfax notes.
Russia’s Finance Ministry has clarified that the new law would not apply to contract workers, also pointing out that its exact provisions are still being revised and altered. Still, the bill’s current version doesn’t say anything about exempting contract employees.