WHAT TAXES AND SOCIAL FEES SHALL BE PAID FOR FOREIGN EMPLOYEES

Apr, 28 2017

Personal income tax

Income of foreign employees is subject to personal income tax. This tax is paid by the employer.

General rate of personal income tax for foreign employees is 30 %.

If foreign citizen stays in Russia for more than 183 days per year, he would get status of tax resident and pay personal income tax at the rate of 13 %.

As for the Highly-qualified specialists (foreign citizens, whose salary is not less than 167.000 rubles and who have received correspondent work permit) they initially pay personal income tax at the rate of 13%, regardless period of stay in Russia.

Social fees

Social fees are paid as well by the employer based on the salary of employee.

In Russia, social fees are paid to 3 state funds: Pension Fund of the Russian Federation (hereinafter Pension fund), Social Insurance Fund of the Russian Federation (hereinafter Social insurance fund) and Federal Compulsory Medical Insurance Fund (hereinafter Medical insurance fund).

Regardless status of foreign citizen employer pays accident insurance fee for employees. Its rate depends on employers type of business activity and may vary from 0,2 to 8,5 %.

Rates of other fees depend on status of foreign citizen:

Foreign citizens, who have obtained work permit under standard procedure:

  • pay social fees to Pension fund at the rate of 22%;
  • pay social fees to Social insurance fund at the rate of 1,8 %;
  • do not pay social fees to Medical insurance fund;
  • pay accident insurance fee in amount from 0,2 to 8,5 %.

Foreign citizens, who have obtained work permit as Highly qualified specialists:

  • Do not pay social fees, except for accident insurance fee in amount from 0,2 to 8,5 %.

Foreign citizens, who have obtained temporary or permanent residence permit:

  • pay social fees to Pension fund at the rate of 22%;
  • pay social fees to Social insurance fund at the rate of 2,9 %;
  • pay social fees to Medical insurance fund at the rate of 5,1%;
  • pay accident insurance fee in amount from 0,2 to 8,5 %.