A new bill submitted to the Russian State Duma on April 14, 2025, proposes significant restrictions on self-employment for foreign nationals. The amendments target Article 4 of the Federal Law "On the Experiment with the Special Tax Regime 'Professional Income Tax'".
Key Change: Foreigners listed in the Controlled Persons Registry (individuals unlawfully residing in Russia) would be banned from obtaining self-employed status (NPD regime).
Background:
- Since February 5, 2025, Federal Law No. 260-FZ has already prohibited foreigners in the registry from registering as Individual Entrepreneurs (IP).
- Current law (Federal Law No. 422-FZ) allows self-employed status for citizens of Russia, EAEU states (Armenia, Belarus, Kazakhstan, Kyrgyzstan), and Ukraine.
- Approximately 13 million Russians and foreigners (mainly in delivery/transport) used the NPD regime by March 2025.
The New Bill:
- Explicitly denies the Professional Income Tax (NPD) regime to foreigners in the Controlled Persons Registry.
- Aims to prevent illegal migrants from legally earning income and addresses public concerns about migration and crime.
Important Distinction: Self-employment (NPD) is a tax regime. Foreigners still need valid work authorization (patent, work permit, TRP, residence permit) to work legally in Russia, regardless of tax status.
Next Steps: The bill is under consideration. Confidence Group monitors developments closely. Foreigners must ensure their migration status is legal to maintain work rights.
Frequently asked questions
1. Who is added to the Controlled Persons Registry in Russia?
Foreigners and stateless persons unlawfully staying in Russia (expired visas/registrations, no valid permit).
2. Which law bans IP registration for foreigners in the registry?
Federal Law No. 260-FZ (effective Feb 5, 2025).
3. Which nationalities can be self-employed in Russia?
Citizens of Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan (EAEU), and Ukraine.
4. What if a foreigner in the registry works as self-employed?
Under the new bill, status will be denied/revoked. Working without status violates tax & migration laws (fines, deportation, entry ban).
5. When does the self-employment ban start?
The bill is under review. The effective date will be set after adoption and presidential approval. Monitor updates.
Photo source: https://ru.123rf.com/
For more information, please contact the consultants of the Confidence Group company.
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