31.05.10

A law that will come into force January 1, 2011 will introduce a special personal income tax regime for foreigners working for private individuals in Russia. The tax will be a fixed advance payment of 1000 rubles per month. Legislators hope that this will simplify taxes paid by domestic help such as nannies and housekeepers. The tax is to be paid by foreigners according to their place of residence the day before the start of the working period specified by their permit. They will receive a reciept from the tax authorities for the payment. The tax will be adjusted annually for inflation. The federal law will also provide new, more advantageous conditions that will attract highly-qualified foreign specialists (professionals earning more than two million rubles per year) to work in Russia. Such foreigners will be allowed to pay 13% tax for the entire length of their contract, rather than having to pay 30% for the first 180 days and then switching to 13% of they have established themselves as tax residents.

Translated by Alinga Consulting Group.

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