The Ministry of Finance has proposed to equalize personal income tax rates for Russians and citizens who are tax residents of Russia, and to establish the amount of income tax on earnings “from employment activities”

Oct, 06 2021

According to the general rule, if the taxpayer stays in Russia for more than 183 days during the last year, he is considered a tax resident, and his income is taxed at 13%, provided that the amount is not more than 5 million rubles per year. Higher income is taxed at the rate of 15%. Income of non-residents who work on the basis of a patent is taxed in the same way. Highly qualified foreign specialists and citizens of the EAEU also pay 13% of labor income, in other cases, non-residents pay personal income tax at the rate of 30%.
Last year, some Russian residents could not return to the country because of the pandemic and closed borders. Therefore, the requirement to stay in Russia for a long period of time to be recognized as a tax resident was softened. People were allowed to remain tax residents if they stayed in Russia for more than 90 days during 2020. This gave them the opportunity to keep the rate of personal income tax unchanged, without losing the right to apply tax deductions.

Author of the article
The Ministry of Finance has proposed to equalize personal income tax rates for Russians and citizens who are tax residents of Russia, and to establish the amount of income tax on earnings “from employment activities”
Valentina Khlavich
Managing Partner
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