New criteria for tax residence

Jul, 02 2019

Ministry of Finance proposes to decrease the term of stay in Russia sufficient for considering natural person as tax resident from 183 to 90 days.

This term should be calculated within any consecutive 12-month period and does not have to be counted uninterruptedly.

Besides that, it is planned to introduce new criteria for tax residence status: “center of vital interests” which includes owning real property, work and family’s place of residence.

The above-mentioned amendments will be made in order to return to Russia taxes paid by businessmen abroad.

According to Art. 209 of the Tax Code of the Russian Federation tax residents of Russia are obliged to pay taxes on all their income from Russian and foreign sources, whereas non-residents pay taxes on income from Russian sources only.

Author of the article

New criteria for tax residence
Valentina Khlavich
Managing Partner

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