Currently, companies must determine on their own the tax rate for remote employees who live abroad, depending on the tax residency of such employees. The Russian Ministry of Finance clarified that the income of non-residents working for Russian companies is generally not subject to personal income tax as income received from sources outside Russia.
Initially, the amendments were designed to oblige all employees of Russian companies to pay personal income tax, regardless of their residence. Previously, it was proposed to set the personal income tax rate for non-resident employees living abroad at 30%, as we wrote in our news about the preparation and discussion of this draft law.
As a result, the draft law establishes personal income tax rates of 13% and 15% (depending on the amount of income - 13% with income less than 5 million rubles for the tax period, 15% - more, according to Article 224 of the Tax Code of Russia).
For the law to come into force, it must be approved by the Federation Council and signed by the President of Russia.
Source: Official website of the State Duma of Russia
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