Personal Income Tax In Russia

Tax on wages and salaries is withheld by employer, thus the taxpayers whose only taxable income was paid by employer do not need to file tax return – unless they elect to claim refund for itemized deductions. 

An employer is obligated to deduct, immediately, each month, the amount of tax and national insurance, due from a salaried worker. 

An individual whose income is only from a wage is not obligated to file an annual return. 

Non-resident individuals are subject to tax on their Russian-sourced income.

A foreign resident who is employed in Russia pays tax only on income earned in Russia. Married couples are taxed separately.

Tax due date 

Self-employed is obligated to make 3 advanced payments: on 15 of July, on 15 of August, on 15 of November. The balance of the tax due, after filing the annual return, is to be paid on 15 of July.

Tax rate

Normally tax rate is 13 %, it is for resident. To be considered a Russian resident, residence must be established of at least 183 days in Russia during any calendar tax year. Non-residents are liable to tax a flat rate of 30 %, generally withheld at source. No deduction or allowances are available for non-resident.

Deductions

Most important deductions are allowed for home purchase (once a life), education and medical expenses. All deductions require scrupulous backup paperwork and are subject to various limitations.

Capital gains for individuals

The standard tax rate in Russia is 13 % for a resident and 30 % for a foreign resident. Taxable gains are the gross proceeds or selling price, without deductions for acquisition costs or other expenses. The profit on the sale of real estate or other asset that has been held for 3 years is exempt from tax. Maximum deduction is 1 million rubles.