Taxation of income of foreigners with a residence permit

Personal income tax of foreigners with a residence permit

Although an advance rate of 13% is applied to the labor income of highly qualified specialists who have not received the status of a tax resident of the Russian Federation, tax deductions provided for in Art.

Important: The employee has a residence permit in the Russian Federation.

Do I need to withhold personal income tax from him and at what rate? And is he entitled to a child tax credit?

The question relates to the city of Ryazan. The answer to your question is in the letter below from the Ministry of Finance of the Russian Federation. Letter of the Ministry of Finance of Russia dated July 17, 2009 No. 03-04-06-01/176 Department of Tax and Customs Tariffs

Insurance premiums and personal income tax on wages of foreign workers

From the article you will learn:

1. What insurance premiums should be charged on the wages of foreign workers, and what social benefits are they entitled to?

2. How to calculate personal income tax on the income of foreign citizens, in which cases personal income tax is subject to recalculation and how to return it.

3. What are the features of calculating insurance premiums and calculating personal income tax from the wages of foreigners who have refugee status in the Russian Federation.

If among your employees there are citizens of other countries, it is better to separate them into a separate category and keep them in a “special account”. Special for foreign citizens are the rules for carrying out labor activities in the Russian Federation, as well as the procedure for hiring and dismissal, which are described in detail in previous articles. In addition, with regard to payments to foreign employees, the legislation provides for a special procedure for assessing personal income tax and insurance contributions. We will understand the intricacies of taxation and calculation of insurance premiums from the wages of foreign citizens in this article.

Insurance premiums

The calculation of insurance contributions for compulsory pension, medical and social insurance from the wages of foreign workers is regulated by the same laws that apply to Russian workers:

• Federal Law of December 15, 2001 No. 167-FZ “On Compulsory Pension Insurance in the Russian Federation”;
• Federal Law of November 29, 2010 No. 326-FZ “On Compulsory Health Insurance in the Russian Federation”;
• Federal Law of December 29, 2006 No. 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity”;
• Federal Law No. 125-FZ of July 24, 1998 “On compulsory social insurance against industrial accidents and occupational diseases.”

However, for foreign citizens, the legislation provides for “exceptional provisions”, separate paragraphs and subparagraphs - so read more carefully! The main thing worth paying attention to is that not all foreign workers are recognized as insured persons under certain types of insurance, and, depending on this, insurance premiums from the foreigner’s wages may or may not be accrued. The main criterion by which foreign citizens are included or not included in the number of insured persons is their legal status. To make it easier for you to understand the procedure for calculating insurance premiums from payments to foreigners, look at the table below, from which it is immediately clear what types of insurance premiums need to be charged for a specific category of foreign citizens.

Contributions to the Federal Social Insurance Fund of the Russian Federation for insurance against industrial accidents and occupational diseases are calculated from the wages of all employees, including foreign ones, regardless of their status (Article 5 of Law No. 125-FZ)

! Please note: In certain cases, insurance premiums are not calculated from the wages of a foreign citizen, regardless of legal status (Article 7, paragraph 4 of the Federal Law of July 24, 2009 No. 212-FZ “On Insurance Contributions to the Pension Fund of the Russian Federation, Social Insurance Fund Russian Federation, Federal Compulsory Medical Insurance Fund"):

• if he is an employee of a separate division of a Russian organization, which is located on the territory of a foreign state;
• if he performs work or provides services under a civil law contract outside the Russian Federation.

The rates, procedure for calculating and paying insurance premiums from the wages of foreign workers are exactly the same as for all other workers, and you also need to take into account the maximum value of the base for calculating insurance premiums. In general, insurance premium rates for all employees, including foreigners, are established by Art. 58.2 of Federal Law No. 212-FZ:

If an organization (IP) calculates insurance premiums at reduced rates, then the corresponding reduced rates should also be applied to payments to foreign employees. Which organizations and individual entrepreneurs have the right to apply reduced insurance premium rates and their specific values, you can see in the Useful information section. Read more about the specifics of applying and confirming reduced insurance premium rates in this article.

Foreign Worker Benefits

As can be seen from the first table, insurance contributions to the Social Insurance Fund in the event of temporary disability and in connection with maternity were not accrued from the wages of foreign citizens temporarily staying in the Russian Federation until 2015. In connection with this, foreigners temporarily staying in the Russian Federation were not paid benefits from the Social Insurance Fund for temporary disability, pregnancy and childbirth, and child care, and a certificate of incapacity for work was not issued. An exception to the payment of benefits is provided only for temporarily staying foreign workers recognized as refugees.

! Please note: Foreign workers with refugee status are entitled to receive social benefits related to the birth of children: maternity benefits; a one-time benefit for women registered in medical institutions in the early stages of pregnancy; lump sum benefit for the birth of a child; monthly child care allowance, etc. (clause “c”, paragraph 3 of the Procedure and conditions for the assignment and payment of benefits, approved by Order of the Ministry of Health and Social Development of Russia dated December 23, 2009 No. 1012n).

From 01/01/2015, insurance contributions to the Social Insurance Fund in case of temporary disability and in connection with maternity must be calculated from payments in favor of temporarily staying foreign workers (Federal Law dated 12/01/2014 No. 407-FZ). Moreover, if the period for calculating insurance contributions to the Social Insurance Fund for such employees exceeds six months, they can count on receiving temporary disability benefits .

All foreign workers, without exception, are insured under compulsory social insurance against industrial accidents and occupational diseases, therefore benefits for temporary disability due to industrial injuries and diseases are paid to them in the general manner.

Personal income tax

If the procedure for calculating insurance premiums from wages of foreign employees is quite transparent, it directly depends on the legal status, then the calculation and withholding of personal income tax from payments to foreign employees will require more careful attention from the accountant. The fact is that the personal income tax rate does not depend on the citizenship of the employee, but on his tax status - resident or non-resident of the Russian Federation. Who are tax residents and non-residents? A tax resident is an individual who stays on the territory of the Russian Federation for at least 183 calendar days over the next 12 consecutive months (Clause 2 of Article 207 of the Tax Code of the Russian Federation). Accordingly, if these conditions are not met in relation to an individual, he is a tax non-resident of the Russian Federation.

Since the issue of tax residency is decisive for calculating personal income tax on an employee’s income, you need to clearly understand the criteria for recognizing an individual as a tax resident specified in the Tax Code of the Russian Federation. Let's take a closer look at them:

• to determine the tax status, a period is taken equal to 12 consecutive months, which may belong to different calendar years and do not necessarily have to be calendar months from the 1st to the 30th (31st) (Letters of the Ministry of Finance of Russia dated April 26, 2012 No. 03-04-06/6-123, dated 04/05/2012 No. 03-04-05/6-444, dated 03/26/2010 No. 03-04-06/51, dated 10/29/2009).
• to calculate the period of stay on the territory of the Russian Federation, it is necessary to sum up all the days when the employee was actually in the Russian Federation, the days of entry into the Russian Federation and departure (Letters of the Ministry of Finance of Russia dated April 20, 2012 No. 03-04-05/6-534, dated March 21, 2011 No. 03 -04-05/6-157, dated December 29, 2010 No. 03-04-06/6-324), as well as days of short-term (less than 6 months) treatment and training abroad. Days of stay in the Russian Federation do not necessarily have to follow each other (Letters of the Ministry of Finance of Russia dated 04/06/2011 No. 03-04-05/6-228, dated 04/01/2009 No. 03-04-06-01/72).
• An individual is recognized as a tax resident in the month in which the period of his continuous stay in the Russian Federation exceeds 183 days within 12 months.

Obviously, in order to correctly determine the period of stay of an employee in the Russian Federation and the corresponding personal income tax rate, supporting documents . However, the list of such documents is not established by law, so depending on the situation, for example, whether the employee is new or has been working for a particular employer for a long time, the supporting documents may be different:

• For a new foreign employee, as confirmation of the period of stay in the Russian Federation, access control marks in an identity document, a certificate of registration at the place of temporary stay, an original (certified copy) of the registration slip and an extract from the registration journal of the passport and visa department (Letter from 07/22/2008 No. 28-11/070040).
• If a foreign citizen has been working for you for a long time (more than six months), then it is easier to determine his tax status; for this you can use the following documents: employment contract, time sheet, travel certificates, hotel receipts, travel tickets, orders business trips, waybills, etc. (if the employee often goes on business trips abroad).

! Please note: the tax status of a foreign worker is the object of increased attention from the tax authorities, as it affects the amount of personal income tax, so it is better to request supporting documents from the employee immediately upon hiring and in writing.

So, we have figured out what tax status is and how it is confirmed, now it’s time to move directly to calculating personal income tax on the income of foreign employees. First of all, you need to decide on the personal income tax rate :

! Please note: from October 6, 2014 , income from the labor activities of foreign workers recognized as refugees or granted temporary asylum in the Russian Federation is subject to personal income tax at a rate of 13% (Federal Law of October 4, 2014 No. 285-FZ “On Amendments to Articles 217 and 224 Part two of the Tax Code of the Russian Federation"). Previously, the income of such employees was taxed according to the general rule, that is, at a rate of 30% if a foreign citizen was not recognized as a tax resident of the Russian Federation, and at a rate of 13% if he was recognized. This change applies to legal relations that arose from January 1, 2014, that is, if personal income tax on the income of a foreign employee who is a refugee or has received temporary asylum in the Russian Federation was calculated at a rate of 30% during 2014, then at the end of the tax period for such an employee there will be an overpayment of personal income tax.

When calculating personal income tax on wages of foreign workers, it is important to take into account that standard tax deductions apply only to the income of tax residents. That is, if the employee is not a tax resident, then he is not entitled to these deductions.

Recalculation of personal income tax on the income of a foreign employee

The tax status of a foreign worker and, accordingly, the personal income tax rate are determined every month on the date of payment of income. It is not surprising that an employee's status may change during the tax period (calendar year). Accordingly, the personal income tax rate may change - 13% or 30%. The procedure for recalculating personal income tax in this case depends on the specific situation. Let's look at the most common ones.

1. The foreign worker's tax status has changed during the calendar year, but may also change in subsequent months.

In this case, there is no need to recalculate the personal income tax withheld by the tax agent from the beginning of the year every month (Letter of the Ministry of Finance of Russia dated October 28, 2011 No. 03-04-06/6-293). This is due to the fact that the final status of an individual is determined based on the results of the tax period, that is, at the end of the year. At the same time, the obligation to recalculate personal income tax and return excess withheld tax falls on the tax authority, and not on the employer as a tax agent (clause 1.1 of Article 231 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated May 16, 2011 No. 03-04-05/6-353 ). To return personal income tax, an employee needs to contact the tax office at the place of residence (stay) with a 3-NDFL declaration, an application and documents confirming his tax status.

1. The employee’s tax status changed during the calendar year (a non-resident became a resident) and until the end of the year the acquired status will remain unchanged.

This situation is possible when the period of stay of a foreigner in the Russian Federation from the beginning of the calendar year exceeded 183 days, that is, regardless of location in subsequent months at the end of the year, the foreign citizen will be a tax resident of the Russian Federation. In this case, starting from the month in which a foreign employee acquired the status of a resident of the Russian Federation, the employer must calculate personal income tax on his income at a rate of 13%, taking into account the overpayment of personal income tax for previous months, calculated at a rate of 30% (Letters from the Ministry of Finance of Russia dated October 3, 2013 No. 03-04-05/41061, dated November 15, 2012, No. 03-04-05/6-1301, dated April 16, 2012, No. 03-04-06/6-113). I propose to consider this case in more detail using an example.

***

An example of personal income tax recalculation when the tax status of a foreign worker changes

Citizen of Tajikistan Aliev T.A. arrived in Russia on February 20, 2014, and since then he has not left the country. 03/01/2014 Aliev T.A. got a job at Delta LLC with a monthly salary of 20,000 rubles. Let's calculate personal income tax on a foreigner's salary for 2014.

For the period from 03/01/2014 to 07/31/2014, personal income tax on Aliyev’s income was calculated at a rate of 30%, since he was a non-resident of the Russian Federation.

The amount of personal income tax withheld for the period 01.03.2014-31.07.2014 was: 20,000 x 30% x 5 months = 30,000 rubles.

From 08/22/2014 the total period of stay of T.A. Aliyev in the Russian Federation exceeded 183 days (08/21/2014 – 183rd day). Thus, in August, the employee acquired the status of a tax resident of the Russian Federation, and this status will remain with him at the end of the tax period, even if he leaves Russia before the end of the year (since he has already been in the Russian Federation for more than 183 days from the beginning of the year). This means that starting from August, the income of Aliyev T.A. are subject to personal income tax at a rate of 13%, in addition, it is necessary to recalculate the previously withheld personal income tax at a rate of 30%.

The recalculated personal income tax for the period 03/01/2014-07/31/2014 will be: 20,000 x 13% x 5 months = 13,000 rubles.

The difference between personal income tax calculated at a rate of 13% and personal income tax withheld at a rate of 30% for the period 03/01/2014-07/31/2014 will be: 30,000 – 13,000 = 17,000 rubles.

That is, 17,000 rubles. – excessively withheld personal income tax, which is subject to offset in the remaining months of income until the end of 2014. Personal income tax is offset in the following order:

• Personal income tax withheld for August 0 rub. (20,000 x 13% - 17,000 = - 14,400 rubles)
• Personal income tax withheld for September 0 rub. (20,000 x 13% - 14,400 = - 11,800 rub.)
• Personal income tax withheld for October 0 rub. (20,000 x 13% - 11,800 = - 9,200 rub.)
• Personal income tax withheld for November 0 rub. (20,000 x 13% - 9,200 = - 6,600 rub.)
• Personal income tax withheld for December 0 rub. (20,000 x 13% - 6,600 = - 4,000 rub.)

Thus, at the end of 2014, Aliyev T.A. there is an excessively withheld, not offset, amount of personal income tax in the amount of 4,000 rubles, for the return of which he must contact the tax authority (clause 1.1 of Article 231 of the Tax Code of the Russian Federation).

***

So, we looked at how to correctly calculate insurance premiums from the wages of foreign workers, as well as how to calculate personal income tax on these payments. This article, together with the two previous ones, is practically a guide to labor relations with foreign citizens. I tried to reveal the most important points: what is the legal status of a foreign citizen and how is it confirmed, what are the features of hiring and dismissing a foreigner, how are the wages of foreign workers subject to personal income tax and insurance contributions. I hope this information will be useful to you.

If you find the article useful and interesting, share it with your colleagues on social networks!

If you have any comments or questions, write to us and we’ll discuss them!

Normative base

1. Tax Code of the Russian Federation
2. Federal Law of July 24, 2009 No. 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund”
3. Federal Law of December 15, 2001 No. 167-FZ “On Compulsory Pension Insurance in the Russian Federation”
4. Federal Law of December 29, 2006 No. 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity”
5. Federal Law of November 29, 2010 No. 326-FZ “On Compulsory Health Insurance in the Russian Federation”
6. Federal Law of July 24, 1998 No. 125-FZ “On compulsory social insurance against industrial accidents and occupational diseases”
7. Federal Law of June 28, 2014 No. 188-FZ “On Amendments to Certain Legislative Acts of the Russian Federation on Compulsory Social Insurance Issues”
8. Federal Law of July 25, 2002 No. 115-FZ “On the legal status of foreign citizens in the Russian Federation”
9. Letters from the Ministry of Finance of the Russian Federation

Codes and Federal laws are presented on the Official Internet portal of legal information https://pravo.gov.ru/

Letters from the Ministry of Finance of the Russian Federation can be found on the official legal portal of the Ministry of Finance of the Russian Federation https://mfportal.garant.ru/

Worker with a residence permit - taxes

; 5) a document on education and (or) qualifications or the presence of special knowledge - when applying for a job that requires special knowledge or special training (para.

6 hours 1 tbsp. 65 Labor Code of the Russian Federation); 6) a certificate of the presence (absence) of a criminal record and (or) the fact of criminal prosecution or the termination of criminal prosecution on rehabilitative grounds. 7) residence permit - when hiring a foreign citizen permanently residing in the Russian Federation. Exceptions may be established by federal laws or international treaties of the Russian Federation (para.

5 hours 1 tbsp. 327.3 Labor Code of the Russian Federation). When hiring, an employment contract with a foreign citizen is concluded in the same manner as with an employee who is a citizen of the Russian Federation.

However, there are a number of features that need to be taken into account, in particular, when concluding an employment contract with foreigners. An employment contract can only be concluded with a foreigner who has reached the age of 18, unless otherwise provided by federal laws (Part 13 of Law No. 115-FZ)

Migrant workers on patent: we analyze individual personal income tax situations

In January 2021, the organization received notification 5 from its Federal Tax Service regarding the right to set off in 2021 the amount of “advances” paid by the foreigner. And the accountant had a question: exactly by what amount can a migrant’s personal income tax be reduced, given that the period of validity of the paid patent partially falls on 2015?

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Let’s say that in mid-December 2015, a Moscow company hired a migrant with a patent, the validity of which is from 12/08/2015 to 04/08/2020. Upon employment, in addition to the patent and other documents, the foreigner presented a receipt for payment of fixed advance payments for personal income tax in the amount of 16,000 rubles. (RUB 1,200 x 1,307 x 2,5504 x 4 months) 4.

Biz Compass

Personal income tax from wages Personal income tax is one of the main sources of replenishment of the country’s budget; it is paid by all individuals who received income in the Russian Federation. There are many nuances in the taxation of foreigners, which depend on their migration status and length of residence in the Russian Federation, as well as a number of factors

The employee is a HQS or a refugee; The migrant arrived visa-free; The foreigner is a citizen of one of the countries of the Eurasian Union.

The obligation to accrue, withhold from wages and transfer the income tax of foreign citizens (NDFL) to the budget is the responsibility of the employer, who in this case acts as a tax agent.

Non-resident employed on the basis of a patent

The program “1C: Salary and Personnel Management 8” (rev. 2.5), starting with release 2.5.96, introduces new statuses for individuals who are not tax residents of the Russian Federation: citizen of a country party to the Treaty on the EAEU and non-resident employed based on a patent. The procedure for determining the status of an individual when calculating personal income tax has also been clarified, the form of the document for generating certificates in form 2-NDFL, etc. has been changed.

Amendments to migration and tax legislation came into force on January 1, 2015, amendments to labor legislation came into force a little earlier - from December 13, 2014. To understand the tax amendments, you also need to understand what has changed in migration and labor legislation.

08 Feb 2021 juristsib 1220

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Taxation of a foreigner with a residence permit

it is provided not only to Russian citizens, but also to foreigners, as well as stateless persons if they permanently reside in Russia. No. 115-FZ). Content

• Insurance contributions from salary
• Personal income tax
• Video: about payment of property tax by foreigners
• Video: how to pay taxes for foreigners
• Property tax
• Transport tax

In Russia, taxation of foreigners is regulated by the Tax Code of the Russian Federation and current international agreements.

What salary taxes are paid with a residence permit?

Taxation of foreigners under the UST is carried out on income paid under civil or employment contracts.

The exception is amounts paid to individual entrepreneurs.

Pension insurance. To determine the right of foreigners to pension provision is their legal status as permanent residents of the Russian Federation. Accordingly, the employer pays a contribution to the Pension Fund only for this category. Health insurance. Persons who stay in the country for more than 183 days a year or who have entered into an employment contract have the right to health insurance.

Social insurance. Thus, when determining the tax status of an individual, an organization must take into account the 12-month period preceding the date the individual received income, including those that began in the previous calendar year. If on the date of payment of income the employee will

Features of personal income tax payment for non-residents

When calculating contributions, persons are not divided into residents and non-residents. Contributions are also calculated on the earnings of employees who are in the country on a temporary basis. However, standard payments should not be made by persons classified as highly qualified specialists. The contribution rate for them will be 1.8%.

If a person has non-resident status, tax deductions in relation to him are not accepted. This limitation is established by Article 210 of the Tax Code of the Russian Federation, paragraph 1 of Article 220 and paragraph 3 of Article 224 of the Tax Code of the Russian Federation. In addition, non-residents cannot use the method of reducing the income received from the sale of property by the purchase price of this property. These persons are not entitled to the benefits established by subparagraph 2 of paragraph 1 of Article 220 of the Tax Code of the Russian Federation. That is, they cannot deduct expenses from income. This restriction was established in a number of letters from the Ministry of Finance. This is explained by the fact that a decrease in income for expenses is, in fact, a tax deduction, and it is not available to non-residents.

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Employment and registration for work of foreign citizens with a residence permit

In turn, the employer hires foreign citizens with a residence permit on a general basis: they are provided with the same social package as Russians. The employer pays salary taxes taking into account the Compulsory Medical Insurance Fund.

When hiring a foreigner with a residence permit in 2018, the employer must check the presence of all documents necessary for employment of the foreign citizen.

List of documents required to hire a foreigner with a residence permit:

• passport of a foreign citizen;
• residence permit for a foreigner in the Russian Federation;
• Russian-style work book (if it doesn’t exist, the employer will fill it out independently);
• registration at place of residence;
• document on education and (or) qualifications or special knowledge;
• SNILS;
• TIN of a foreign citizen.

After checking the validity of all documents, the employer signs an employment contract with a foreign citizen with a residence permit.

After which the employer must notify the Main Department of Migration of the Ministry of Internal Affairs about the conclusion of an employment contract and the employment of a foreigner with a residence permit to work within three days.

Also, within three days it will be necessary to notify the Main Directorate for Migration of the Ministry of Internal Affairs when dismissing a foreigner with a residence permit in Russia.

What payments are provided for employers for foreign employees

One of the main issues of concern to both sides is taxation. The employer must organize the correct calculation of payments and further interaction with government agencies. The interest of a potential employee is caused by the desire to find out how much money he will receive in his hands.

Particular attention should be paid to foreign workers who work on the basis of a patent. Its validity period directly depends on the fixed advance payments that the foreign citizen is required to make. In other words, the migrant makes payments in advance towards future personal income taxes.

In this regard, many people question whether the employer should withhold personal income tax from such foreign employees and transfer it to the budget. Yes, it should: advance payments are a kind of payment for a patent, which in no way cancels the employer’s obligation to pay personal income tax.

However, these amounts are closely interrelated: when calculating personal income tax, the employing organization takes into account the amounts of advance payments and makes appropriate adjustments. By and large, every accountant should know how to reduce the personal income tax of a legal entity if a foreigner pays for a patent. But for a general understanding, here is a brief description of this process.

The employer sends an application to confirm the right to reduce personal income tax (approved by order of the Federal Tax Service of Russia No. ММВ-7-11/512 dated November 13, 2015), and within 10 days receives a response from the tax authority in the form of a notification. If a positive decision is made in accordance with the notification, the employee writes a corresponding statement and provides receipts for payment of advance payments. After this, the employer adjusts the personal income tax, reducing it by the amount of advance payments.

Self-employed employers deserve special attention. An individual entrepreneur is a convenient form of business organization if a person works for himself or does not plan to form a large staff. The tax aspect also plays an important role: as part of supporting small businesses, several special tax regimes have been developed and implemented:

• simplified taxation system (STS). An entrepreneur has the right to choose the object of taxation - income (the rate will be 6%) or “income-expenses” (the rate will be 15%);
• single agricultural tax (UST). Can only be used by agricultural producers;
• unified tax on imputed income (UTII). Established for certain types of activities, its size is determined not by calculation, but by legal requirements;
• patent tax system (PTS). Applies only to individual entrepreneurs if the number of employees does not exceed 15 people. The system is used for a certain list of industries.

It must be said that these modes greatly simplify the life of businessmen, which is why entrepreneurs actively use them. The patent tax system is becoming increasingly popular. The first reason for potential taxpayers to rejoice is the tax rate: it is set at 6%, and in some cases can be reduced to 0%.

The second reason encouraging entrepreneurs to choose PSN is related to the tax return. This document contains information about income received during the reporting period. Russian legislation provides for a fairly extensive list of types of tax returns. But we are interested in a very specific aspect: individual entrepreneurs and their reporting.

Some simplified taxation systems assume that the entrepreneur is exempt from paying certain taxes. In particular, we are talking about personal income tax. By the way, reporting on this tax is provided in the form of a 3-NDFL declaration. What to do if an individual entrepreneur has a patent: do you need to submit 3-NDFL?

In this case, a very clear answer can be found in the legislation. Article 346.52 of the Tax Code of the Russian Federation states that the patent tax system does not provide for the provision of a tax return. Accounting for transactions is carried out by filling out an income book, which, if necessary, is submitted to the tax authorities.

Residence permit and taxation in the Russian Federation: what taxes to pay?

If a foreign citizen has a residence permit, he must pay income tax.

Income taxes with a residence permit are calculated based on a rate of 13%, since the residence permit assumes that a foreign citizen will reside in Russia for more than 180 days a year, which means that the foreigner will be a tax resident and pay only 13%.

In turn, the employer pays taxes for an employee with a residence permit according to the same scheme as for a Russian employee:

• Personal income tax 13%
• Contributions to the Pension Fund 22%
• Contributions to the Social Insurance Fund 0.2%
• Contributions to the Social Insurance Fund 1.8%

Non-resident employed on the basis of a patent personal income tax rate

The employer is required to remit taxes for a foreign employee, although there are differences in the amount of personal income tax for employees with a permit and with a patent. It is common for visa-free foreigners to obtain a patent. Such persons are legally taxed at the standard 13%. It does not matter whether the foreigner is a resident or not.

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Foreign workers in the Russian Federation are also forced to know the specifics of taxation. This is quite difficult - even employers themselves are not always aware of the amount of tax to withhold from an employed foreigner. If such an employee also pays advance payments from the patent for the work, then the difficulties only increase.