Way to Russia Talk Lounge

Andrea · Just Starting Joined: 26 Oct 2005 Posts: 4

As a representor of my company, we are currently looking for a company who can run the payroll for our contractor working in Russia. We just need help with the calculation and overpayment of Russian tax, quite urgently. If you know of a company offering this service.
Thanks

DITTRICH · Posted: Wed Oct 26, 2005 2:39 pm Post subject:

With a very limited amount of information to go on, it is difficult to recommend exactly what you should do. I also imagine that since you are asking here, you don't want to do this using expensive accountants.
Also, the kind of information I'd need to provide you with an opinion might not be what you'd feel comfortable putting onto the internet.

My advice is to find a friendly accountant who has worked in Russia and knows a thing or two about payroll taxes. Now I used do this sort of thing in Russia too, but this was a few years ago now.

Some pointers...

1 Your 'contractor' - a russian company or an individual?
If a russian company, they should have a russian accountant to do this.
So who controls this russian company and why is this your problem?
2 Russian taxation and doing business with russian companies.
There are many ins and outs - vat, with-holding taxes etc etc.
A mine field - specialist advice should be sought.

As you can see, I could not begin to offer advice unless I understood - and advice doesn't necessarily come for free.

Rgds

Les

Andrea · Just Starting Joined: 26 Oct 2005 Posts: 4

Les
We are a UK employer paying our employee in Russia who might overstay 183 days so he needs to pay tax in Russia from day one.
We need a company who could run the payroll and let us know the amount of Russian tax to pay and advise us where to pay it. We would pay for this service as well as doing a tax return and advice on expenses that can be claimed against income.
Thanks
ANdrea

DITTRICH · Posted: Wed Oct 26, 2005 6:14 pm Post subject:

I would regard this problem as largely being a personal taxation matter. I assume your company has no legal presence in russia (no legal entity or representative office) - you have an employee who lives there and is working for you.
You primarily need to find someone who can advise your employee on what his russian tax liability is likely to be and to handle the submission and payment of income tax (and UST - if any). I did read somewhere that there may be a liability for the UST or unified social tax, though I think there are ways around this.
My view is that your company would be best off consulting a second-tier firm of accountants with a moscow presence - someone who can be a bit creative and give practical advice. Have a look at this too...
http://www.ey.com/global/download.nsf/Russia_E/Doing_Bus_-_May_2005/$file/Doing_Business_Russia_05.pdf
Section on individuals.
Though unless you want to pay them big bucks go and find a cheaper firm of accountants or lawyers with offices in russia where your employee is working.
Good Luck
Les

Andrea · Just Starting Joined: 26 Oct 2005 Posts: 4

Len
That is correct, that is what I need. I'm just finding it very difficult trying to find such a company over the internet. E-mails are returned uknown and I have not had a positive response back yet. I'd like to thank you for your advice however. Will keep on trying.
Regards
Andrea

DITTRICH · Posted: Wed Oct 26, 2005 7:27 pm Post subject:

Moore Stephens International
St Paul's House
Warwick Lane
London EC4M 7BP

Tel: +44 (0)20 7334 9191
Fax: +44 (0)20 7334 7976

These people used to be our auditors in russia. They have a moscow office but you'll need to call London to get the details.
Les

Andrea · Just Starting Joined: 26 Oct 2005 Posts: 4

Thanks so much, I will let you know how I get along
Regards
Andrea

Rick · Posted: Wed Oct 26, 2005 9:03 pm Post subject:

This topic is moved to the Jobs and lessons section, as the information seems to be mostly valuable to expats and foreign businesses in Russia..