The initiative is reflected in the Main Directions of Budget, Tax and Customs Tariff Policy for 2022-24. The document refers to the establishment of the amount of personal income tax on earnings “from employment” for non-residents at the same level as residents.
However, other types of income, including investment, are not mentioned. The agency first came up with such an idea in 2019. A relevant bill was drafted last year, but it did not go beyond the stage of public discussion.
Current legislation provides for a personal income tax rate of 13 percent for residents and 30 percent for non-residents, regardless of the type and source of income. If the resident’s annual income exceeds five million rubles, the difference is taxed at a rate of 15 percent.
If the income is received abroad, in a state that has an agreement with Russia to avoid double taxation (Sydney), the rate may be reduced – to the difference between the due taxpayer in Russia and actually paid in the country of income.
To obtain the status of a tax resident in Russia, a person must have been on its territory for at least 183 days in the last year.
Economists interviewed by the publication noted that lowering the personal income tax rate for non-residents could have a positive impact on Russia‘s business climate and will be convenient for mobile workers who regularly travel abroad and spend much of their time there, as well as for their companies.