Starting January 1, 2027, Russia will launch a large-scale three-year experiment to attract foreign labor through an organized recruitment mechanism. The initiative, developed by the Russian Interior Ministry on the instruction of the country's leadership, will fundamentally change the rules for hiring migrants.
We wrote about this earlier in our news, and now the official announcement of the project has appeared on the Interior Ministry's website.
New registry model for employers
A key innovation will be the transition to a registry model. Only employers and contractors entered into a special state registry will have the right to hire foreign nationals. Data on the workers themselves will also be contained in a unified system. This will increase the transparency and controllability of migration processes.
Fixed advance payments instead of personal income tax
The taxation of income for workers participating in the experiment will also undergo changes. Personal income tax will be paid as fixed advance payments. If a foreigner works for an organization or an individual entrepreneur, the tax agent (the employer) will handle the tax transfer. If they are employed by a private individual, the obligation to pay will fall on the worker themselves.
Electronic document flow and fixed-term employment contracts
The experiment provides for the possibility of full electronic document flow through the information system of the organized recruitment operator. Employment contracts with foreign citizens within this project will be concluded on a fixed-term basis.
Financial benefit for regions
An important aspect is the distribution of tax revenues. The entire amount of personal income tax paid by foreign workers within the experiment will be 100% credited to the budgets of the constituent entities of the Russian Federation, which will become significant financial support for the regions.
Geography of the experiment
The pilot project will be in effect throughout Russia, except for Moscow and the Moscow region. The experimental period is set fr om January 1, 2027 to December 31, 2029.
Currently, the package of relevant bills has already been submitted to the Russian Government for consideration. According to the Interior Ministry's estimates, the innovations will allow for an additional attraction of about 22 billion rubles annually into the budget system.
Frequently asked questions:
1. What is the Interior Ministry's experiment on organized recruitment?
This is a new pilot project launching in 2027. It will change the procedure for the legal employment of foreigners in Russia by creating unified registries of employers and workers.
2. When does the experiment start and how long will it last?
The experiment officially starts on January 1, 2027 and will last three years - until December 31, 2029.
3. Wh ere will the new procedure apply?
The new rules will apply throughout the territory of Russia, except for Moscow and the Moscow region.
4. What is the registry model for employers?
This is a system where only companies entered into a special state registry will be able to hire foreigners. Data on the workers themselves will also be entered into a unified accounting system.
5. How will the tax (personal income tax) change for foreign workers?
Personal income tax will be paid as fixed advance payments. For employees of organizations, the employer pays; for workers hired by private individuals, the foreigner themselves pays.
6. Where will taxes fr om foreign workers go?
All personal income tax collected within the experiment will go in full (100%) to the budget of the region wh ere the foreigner works.
7. Which laws are being changed for the experiment?
To launch it, amendments are being prepared to the Tax, Labor, and Budget Codes, as well as to the law "On the Legal Status of Foreign Citizens."
Photo source: https://ru.freepik.com/
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