Income and Taxes in Russia

Author: Dmitry Paranyushkin (on 11 Mar 2020)
If you receive payment from the sources in Russia (such as a salary, a one-off payment, or income from selling your real estate) the tax on such income needs to be paid in Russia. If you are not a tax resident in Russia and your country has a double taxation agreement with Russia, you would then deduct the tax you've paid in Russia from the tax you owe in your country of tax residency.
 
You can get paid in Russia even if you don't have a temporary residency permit (RVP) or a work visa. But in this case you cannot get a salary, only irregular payments from time to time. A type of visa that could be used for this type of sporadic jobs is a business visa, which you can get online.
 
There are also several different ways how you can optimize your taxes in Russia. There are some special conditions in the Russian tax code that allow the non-residents to reduce their personal income tax from 30% to 13%. Alternatively, if you receive income several times a year, you might want to open a limited company and register it under the simplified accounting system, which means you'd only pay 6% on your revenue (or 15% on your profits) and would not have to charge VAT (20%). Also you would only have this income taxed in your country of residence if you take out dividends from your company.
 
Below we explain how the both systems work. You can also get a direct consultation with a lawyer that we have used ourselves on several occasions for only €25 for 15 minutes over Skype or WhatsApp. Follow the link below:

 

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Income and Taxes in Russia

If you receive payment from the sources in Russia (such as a salary, a one-off payment, or income from selling your real estate) the tax on such income needs to be paid in Russia.