Thomas, Heard this is a bit different... During the first half of the year (until 183 days of stay in Russia are confirmed) the company should deduct 30% income tax (which is applied to non-residents on all incomes in Russia, even including the difference between the cash exchange rate and the Central Bank's rate ;) but after that the 13% rule applies and the whole income tax balance is made in the end of the year. Finally, the company owes 17% of the tax deducted during the first half of the year... and only few know how to effectively arrange these tax returns. Sincerely, Sergey Orlov, Marketing Director, Electronintorg SP, Tel +7-495-2280766 Fax +7-495-7873869 Mob +7-916-3929803
_____ From: [email protected] [mailto:[email protected]] On Behalf Of Thomas Kiehn Sent: Thursday, March 12, 2009 11:54 AM To: The Moscow Expat List Subject: Re: Expat List Taxation 183 day rule Julian, I think you are confused about one point: >>>We believed that once you have done the 183 days and got your residency, then that was it for the rest of your time in Russia. Residency is an entirely separate issue and is not determined in any way by how many days you reside in Russia. You must physically be in Russia at least 183 days of each year in order to pay the lower income tax of 13%. Your company may deduct only 13% from your salary each month from the start of the year if it plans to keep you on the payroll (and has the license to hire you for that full period), but if your/their plans change and you stay in Russia less than half a year, then they must pay up. Not sure how that typically works itself out... Thomas 2009/3/12 <[email protected]> Expats We had a meeting with PWC yesterday and their 'experts' told us something interesting. They said that when a foreign worker works in Russia s/he has to requalify for the 183 day rule every year [30% down to 13% income tax] and if they leave Russia before completing 183 days in the year, [ even if they are tax resident from previous years] they will have to pay the missing 17% tax from that year??? This is not what we understand but we are not tax experts. We believed that once you have done the 183 days and got your residency, then that was it for the rest of your time in Russia. there was no 'requalifying period' each year. Anyone on the list with any real expertise or experience on this matter? Julian Beirne _______________________________________________ Expat mailing list [email protected] http://www.lists.ru/mailman/listinfo/expat http://www.expat.ru/forum/
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