Tax Law

Tax Law
The Tax covers the rules, policies, and laws that oversee the tax process, which involves charges of estates, transactions, property, income, licenses and more by the government. Taxation also includes duties on imports from foreign countries and all compulsory levies imposed by the government upon individuals for benefit of the state.

Tax Code of the Russian Federation For Expats
According to Article 227.1 of the Russian Tax Code, Special Considerations Relating to the Calculation of the Amount of Tax and the Submission of a Tax Declaration by Foreign Citizens Who Carry Out Labour activities in the Employment of Physical Persons on the Basis of an Employment Agreement or a Civil Contract for the Performance of Work (Rendering of Services) for Personal, Domestic and Other Similar Needs Not Connected with Entrepreneurial Activities.

Fixed tax
The tax shall be paid in the form of fixed advance payments equal to 1,000 roubles a month. The level of fixed advance payments which is specified in as 1,000 roubles, shall be indexed by a deflator coefficient which is established annually for each ensuing calendar year and takes account of changes in consumer prices for goods (work and services) in the Russian Federation for the preceding calendar year, and by deflator coefficients which have previously been applied in accordance with this clause.

The deflator coefficient shall be subject to official publication in accordance with the procedure established by the Government of the Russian Federation.

A fixed advance payment shall be paid by a taxpayer at the taxpayer’s place of residence (place of stay) before the commencement date of the time period for which a license is issued or the commencement date of the time period for which the period of validity of a license is extended.

Tax on income of physical persons
In this respect, the taxpayer shall enter “Tax on income of physical persons in the form of a fixed advance payment” as the type of payment in a settlement document.

Tax exemption
A taxpayer shall be exempt from submitting a tax declaration for tax to the tax authorities, in the following cases :

Exceeded payment
the total amount of tax payable to a particular budget as calculated by the taxpayer on the basis of income actually received from activities referred to in clause 1 of this Article exceeds the amount of fixed advance payments paid for the tax period.

Departure from Russian Federation
the taxpayer departs from the Russian Federation before the end of the tax period and the total amount of tax payable to a particular budget as calculated by the taxpayer on the basis of income actually received from activities referred to in clause 1 of this Article exceeds the amount of fixed advance payments which have been paid.

Annulled working license
The worker's license has been annulled in accordance with: Federal Law No. 115-FZ of July 25, 2002 “Concerning the Legal Status of Foreign Citizens in the Russian Federation”.