Non-residents will need to pay income tax based on their salary in Russia. Hence, you will have to apply for a tax number with the Federal Tax Service. This number will be required for all your tax transactions.
In general, income tax in Russia is deducted at source. This means that your income tax will be deducted from your salary by your employer. However, you will be eligible to refunds at your next payments in case of overpayment. If your income tax is not deducted at source, you will have to pay it in cash at the nearest tax office to your place of residence on the 15th of July at the latest.
If you are paying tax in Russia, you may be eligible for certain deductions, namely if:
You will have to fill in a tax declaration form, which is known as the Nalogovaya Declaratia, if your income tax is not deducted at the source. You may collect the form at the nearest tax office to your place of residence or on the www.3-ndfl.info website (which is in Russian only). It is best to visit the nearest tax office with a Russian firned if you are not comfortable with your level of Russian.
Russia has a flat tax rate which applies to tax residents.You qualify as a tax resident if you have spent at least 183 calendar days in the country. A flat rate of 13% will be deducted from your income. Non-residents who spend less than 183 days in the country will have to pay income tax at a rate of 30% on all their Russian-sourced income.
Russian sources include the following:
Here is a list of tax-exempt transactions which, however, do not apply to expatriates:
Many countries have signed a treaty to prevent double taxation with Russia. You are advised to check with your country's tax authorities before moving to Russia.
Useful links:
Federal Tax Service
Federal Tax Service - Tax Office Locator
KPMG ' Russian Tax System