25 Nov 2022 13:02

Russia's Finance Ministry inclined to tax remote workers at Russian rate - Siluanov

MOSCOW. Nov 25 (Interfax) - Russia's Finance Ministry is inclined to keep the personal income tax rate for remote workers of Russian companies who work from abroad at 13-15% and is discussing this issue with lawmakers, Finance Minister Anton Siluanov said.

The Finance Ministry's proposals on the personal income tax for remote workers, the initial draft of which was presented in the summer, must foremost address a situation where taxpayers altogether lose the status of a tax resident anywhere, Siluanov said said in an interview with Nailya Asker-Zade on the Vesti program on TV channel Rossiya 1.

The number of Russian citizens working remotely from abroad has increased compared to previous years, with people leaving the country but continuing to conduct their business in Russia remotely, he said.

"And in this case a person can migrate from one country to another and not be a tax resident anywhere at all. Therefore, in terms of tax fairness, we are calling for the preparation of the appropriate legislative solutions so that, despite the person conducting their business in Russia while abroad, they still pay income tax accordingly," Siluanov said.

"What tax rate? Like for a non-resident, 30%, or 13% like for a Russian resident? We are considering this issue and, of course, are leaning toward not changing the residency status here, so that the type of activity that is conducted in our country from abroad is taxed at a rate like the one for residents of Russia, meaning 13%. We are also now working out such proposals with the parliament," Siluanov said.