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Calculating Personal Income Tax In Russia On Deposit Income From Foreign Banks
Individual tax residents in the Russian Federation who receive income from sources outside the Russian Federation must independently calculate the amounts of tax payable to the relevant budgets and submit a corresponding tax return to the tax authority at the place of their registration no later than April 30 of the year following the concluded tax period in which this income was generated.
This is according to Russian Ministry of Finance Letter No. 03-04-05 / 86210 of December 22, 2017.
In their explanations, officials refer to Art. 208, paragraph 3, subparagraph 1, of the Tax Code, which states that dividends and interest received from a foreign organization, with the exception of types of interest stipulated in subparagraph 1, item 1 of this article, are to be considered income received from sources outside the Russian Federation. Thus, individuals who are tax residents of the Russian Federation who receive income from a foreign organization in the form of interest on bank deposits should declare that income when calculating and paying personal income tax in Russia.
Translated by Alinga Consulting Group.
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