The Ministry of Finance is preparing a bill to change the personal income tax rate for income of non-residents from labor activities in Russia. A notification on the preparation of amendments to Article 224 of the Tax Code of the Russian Federation is published on the Single Portal for posting draft legal acts.
Recall that individuals located in Russia for less than 183 days for 12 consecutive months are not recognized as tax residents. According to the current norms of this article, in respect of income from labor activity in Russia received by individuals who are not tax residents, the personal income tax rate of 30% is applied. The exception is the income of highly qualified specialists, citizens of the EAEU, refugees, participants in voluntary resettlement programs, and a number of other categories of individuals. The rate of 13% applies to such income.
Last October, Russian Prime Minister Dmitry Medvedev instructed the ministries to prepare amendments to the Tax Code of the Russian Federation, which will reduce the personal income tax rate for non-residents’ labor income.
In this regard, the Ministry of Finance has begun preparing a law that will allow the application of a personal income tax rate of 13% with respect to income from labor activities in Russia received by any individuals who are not tax residents of the Russian Federation.