How to pay taxes in Russia if you went abroad for a long time and became a non-resident
When can a person become a non-resident?
It should be borne in mind that in the absence of a person in the country for 183 or more days over the past year, the status of a tax resident is lost. Starting from this moment, it will be necessary to pay the personal income tax difference equal to 17% of all income to the budget. In this case, you need to inform the employer that the tax status has changed and after that he will have to recalculate the tax at a rate of 30%. Those interest that have not been paid for each month since the beginning of the year will be deducted from the following salaries.
A person can receive income from a company located in Russia, according to an agreement, which can be both labor and GPC – it does not matter. According to the law, the status is checked on each date when income is paid, and finally at the end of the year. It turns out that if a person is a resident, then for the current year he will remain so and vice versa.
It should be taken into account when traveling back to the Russian Federation that the day of arrival will be counted as spent in the Russian Federation. And also on the days when a person is on the territory of the Russian Federation, the time of departure from the country for a period of up to six months for the purpose of treatment or study is taken into account. These 183 days may not be consecutive. It may happen that a person has returned to the Russian Federation and this will not reset the period of his stay abroad, which has accumulated over the past 12 months. And vice versa, if he goes abroad, this will not write off the days that he was in Russia in the same 12 months.
How to pay taxes in such cases
People who left Russia, but still continue to work for firms in the Russian Federation, should deal with the topic of residency, because the amount of personal income tax depends on it. The fact that a person is a resident or not will only matter for personal income tax. More precisely, in this article we will talk about tax residency. Tax residents and non-residents are equal in responsibilities and in paying most other taxes.
A tax resident of the Russian Federation, in accordance with Article 224 of the Tax Code of the Russian Federation, deducts 13% of income less than 5 million rubles a year and 650,000 rubles and 15% of income over 5 million rubles a year. For non-residents, the tax rate is already 30%. But there are some exceptions here, for example, non-residents are required to pay 15% on dividends from public companies in other countries, as well as interest on deposits or account balances, etc.
When a worker does their work remotely, where it is done determines where the income comes from. If this is the territory of the Russian Federation, then the source of income is Russian. If it is abroad, then, accordingly, a foreign source of income, despite the fact that the employer or customer is from Russia. This moment may change from 2023 and this kind of income can be recognized as earnings in Russia, regardless of the terms of the contract.
Do I need to notify about departure and change of tax status
The legislation does not provide that people in such cases need to notify the tax service and other government agencies. The tax authorities themselves learn about the status, based on information from the income certificate, which is submitted by the employer in Russia at the end of the year, as well as by the customer or broker. There is another case when a person submits a 3-NDFL declaration, which will indicate whether he or she is a resident.
Despite the fact that the tax code does not oblige to notify the employer from Russia, it happens that such a requirement can be enshrined in the local regulatory act of the employer, the GPC agreement with the customer, or in the brokerage agreement. Of course, if this is just such a situation, then the obligation will have to be fulfilled.
But in Russia, quite a lot of employers and customers do not track the status of an employee, because it is much easier for them to pay 13% personal income tax than at a rate of 30%. Of course, it is more profitable for non-residents who are citizens of the Russian Federation, because at the same time there is still the opportunity to receive a deduction. Despite this, some risks are still present.
Be that as it may, the tax authorities may calculate the change in resident status not on direct grounds. For example, a person could report that he opened an account abroad. Or if there is an exchange of financial information with the country where he resides, which occurs automatically. And yet, indirect signs cannot be direct evidence and, therefore, only by them it will not be possible to call a citizen of the Russian Federation a non-resident.