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Giselle
12-11-2008, 20:29
Hi everyone,

I hope that someone might be able to offer a few words of advice, since I have heard so many different things from different people...

I arrived in Moscow in mid-January 2008 to study on a student visa (I was here for part of 2007 as well, but I don't think that matters at all). I stayed in Russia until June, went back to the U.S. for the summer, and returned in September to work (on a 90 day business visa which will expire next month). I've been in Russia ever since and will be until it's time to renew the visa.

My main question: do my 183 days start January 1 (start of the year), mid-January (when I first entered the country this year), or September (when I entered the country on a business visa and started to work)? My company (American) is currently withholding 13% taxes, but they told me that if I leave the job (quit or layoff) before I have been in Moscow 183 days from the date of my September entry into Russia, I'll have to pay the Russian government a lot of money in back taxes (the 13-30% difference), which I'd rather not due. So I'd like to be clear on this situation...

By the end of 2008, I'll definitely have been in the country 183+ days. But most of that time was on a student visa.

Thanks!

vox16
13-11-2008, 00:54
found by mighty yandex..
. (http://www.r59.nalog.ru/document_print.php?id=163333&topic=yiu59)
and
/ ( ) ( ) (http://www.garant.ru/main/10800200-023.htm#0)

briefly - all days when person in in Russia counts in that 183 days, including study.

For taxing purposes , 183 days are counted from 1 jan to 31 dec, but from september to october(?) while you have not yet gained 183 days, you are taxed by 30%, and after you gain 183 days these 30% are 'reimbursed' as if you were to be taxed by 13%.



but they told me that if I leave the job (quit or layoff) before I have been in Moscow 183 days from the date of my September entry into Russia, I'll have to pay the Russian government a lot of money in back taxes (the 13-30% difference),
I don't think taxation rate has anything to do with employment in particular company.

herald1973
13-11-2008, 01:25
I wrote and posted the answer but then I noticed that the comparison with my situation is not applicable given that probably the type of contract or a tax ruling can not be compared to my situation (Russia-Italy).

Sorry, continue.

Herald

cupcake
13-11-2008, 03:18
I just went through all of this.

For the purpose of counting they start on the first day you arrived in country, regardless of visa type. Count days when you arrive and depart as 0.5 days each (so if you arrive on 1 Jan then 1 Jan counts as 0.5 days). The counting period can go over a calendar year end (so for me they started counting on Oct 2007 when I first arrived into Russia).

You need to show photocopy of every passport page, plus provide a summary of your time spent in Russia. You ask the tax office for a Tax Residency Certificate. Once you have this your company should reimburse the 30%-13% back to you.

Strictly speaking, your company is not doing it properly as they are supposed to tax you 30% at first and then drop it to 13% and reimburse the difference. But anyway....

The tax year in terms of paying taxes runs Jan to Dec. Your company will be deducting tax and holding onto it. Tax is paid once a year in arrears and your company is doing this for you, so although for your purposes it is on a PAYE basis (deducted each pay period), your company is simply ensuring they have enough tax to cover our liability. I am guessing here, but I think the onus might be on the company to ensure tax is paid by the people it pays, and so that might be why everyone I know had tax deducted at 30% and then the difference reimbursed.

If you stay for a long time and there is no question about the 183 days being reached, then you might not need the tax certificate. I just needed to get that as for various reasons I needed to prove that I had reached the threshold.

Giselle
13-11-2008, 15:48
Thanks so much, everyone!

ETA:

"Strictly speaking, your company is not doing it properly as they are supposed to tax you 30% at first and then drop it to 13% and reimburse the difference. But anyway...."

Actually, I had already spent a total of 183 (more than that) in Russia in 2008 before I started working there. So I guess they decided to go by that? They did make photocopies of all of my passport pages, but I don't have a Tax Residency Certificate.

cupcake
13-11-2008, 23:29
Hi Giselle

I suspect what has happened is your company has applied for the tax cert for you anyway having seen you had been in Russia for the required length of time. I actually think most companies probably do this for their employees and no-one is any the wiser that it has happened in the background. For me, I know about it as there was some question at my company about whether I had qualified or not.

It's good to know you will be OK andnot hit with a tax bill!