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waynemx5
16-11-2009, 22:07
Hi,

I have been offered a position in Moscow and I will hopefully be starting in the new year. I will be working for a Russian company and will be working and living 50% of my time in Moscow and the remainder in the UK (2 weeks at a time). I want to become registered in Russia so I can take advantage of the tax laws but I'm unsure what to do, any help would be much appreciated.

My wife and children will be planning to stay the school holidays in Moscow with me, so I will want to live somewhere what is child friendly (expat community preffered) but also close to downtown Moscow and lively for the times when I'm on my own, any suggestions?

Wayne

Bels
16-11-2009, 22:17
First of all I am no accountant. You source of income might be mixed with UK and Russia? Let us put that aside for the moment. You have adeal with working in Russia YES? As an enployee or what. As an an employee with full package with a full package contract with a company who knows what they are doing in employing expat employees you are off to a good start.

Is this the case , as I can speak no further without further info here.

Anna Sahakyan
18-11-2009, 12:44
Your registration will not influance your taxation.
You shall pay taxes from income earned in Russia in Russia. Tax rate is 30% for non residents (who stay in Russia less than 183 days a year) and 13% for residents (who stay in Russia more than 183 days a year)

Ian G
18-11-2009, 13:01
As I understand it if you are more than half the year in Russia you pay the lower rate of tax- the standard 13% rate -on your whole salary. If you are here less than 183 days a year you pay the higher rate but only on your income recieved in Russia. You will be employed in Russia, not on a business trip, so you must be paid in Russia.

You are automatically resident in Russia for taxation purposes if you spend more than 183 days in a year here. This is not the same as residency for immigration purposes- (temporary or permanent residence).

Registration is a bureaucratic procedure that your employer will look after- it just involves informing the authorities each time you enter and before you leave the country - it is so they know where you live. If you are making regular trips back to the UK this will be a bit of a bureaucratic pain for your employer, but they are presumably prepared for that. Registration is not related to tax, as Anna Sahakyan says.

Places to live... Hopefully your employer will help you with this. That is the kind of support they should be giving you, but if not, the folk here on expat.ru are very helpful. Especially the regular posters.

Elina Vladi
18-11-2009, 14:23
Welcome to Russia!
Don't worry, sure your employer will take care of you. The company realises the great respondsibility they take offering you job here. Probably, they preliminary calculated average budget per month, costs u will face here. As I know from my working expirience expats are always given special conditions and higher salaries. In some cases even school and leaning foreign languages for kids are paid by the employer. You should check all the aspects of your job contract and the terms of the relevant policies. Take an oppotunity to do it before leaving to Moscow, it will keep you from unpredictable costs.
Regarding an income tax issue. I'm not sure you are in charge of it. This kind of issues are in charge of the Accounting department of yr company. If it is a multinational company accountants must speak in english as well, they can explain which income rate they will use for deduction in the case. And HR department can help you with a temporary registration.
Regarding a place to leave (apartments). It depends on your budget, requires and expectations. Historical city center of course is the most expesive place to live. Here are advantages and disadvantages as well. If you will work in the city center it take less time to get a work. You won't spend time for transportation, money for metro etc, u will wake up later. All musems, exhibitions, parks, intertainments, etc are here. But it is always noisy and busy. It is quite difficult to find a good supermarket to buy goods for a week by justified prices. I'm as local preffer to live in outlying districts. It takes me 25 min. to get the heart of the city by metro. And i'm quite happy with it.
Don't hesitate to contact me if u have questions or need some tips! :-)
cheers!

waynemx5
19-11-2009, 16:39
Thanks for all of your advise. I will be spending more time in Russia than the UK, so I think that I should be fine with the tax. There will no daobt be further questions as I progress.

Wayne

Swarbs
20-11-2009, 11:03
Thanks for all of your advise. I will be spending more time in Russia than the UK, so I think that I should be fine with the tax. There will no daobt be further questions as I progress.

Always feel free to post them here - we're a diverse enough bunch to be able to answer most things! Is the company providing you with a work permit? If so, they are responsible for all your taxes, registration with the authorities etc. They will also often help with an apartment and other administrative stuff, as they don't want their valuable expats getting taken for a ride by the locals!

Remember to call HMRC is the UK before you leave, and tell them you are relocating to Russia due to work. They usually want you to fill out a form, so they know you're working abroad, and don't go chasing you for tax whilst you're working in Russia. There is a double taxation agreement between the UK and Russia, which is useful, as it stops HMRC trying to tax you on any income you earn from your employment in Russia.