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bjolso
21-10-2011, 22:11
If I live in Russia (on Vid na zhitelstvo, PRP), but earn some salary in another country, I am expected to declare the foreign income to russian tax authorities, right? And since I have already paid taxes abroad, I should be excempted from the Russian 13% personal income tax, since there is an agreement on avoding double-taxation.

Simple question: How does this work in practice? Meaning, what documents do I need to show the taxation office to be exempted from russian tax? Simply a translated and notarised copy of salary payments and tax deductions is enough, or is anything more advanced expected?

Dje
21-10-2011, 22:46
Is "some salary" just a part of your income or 100% of it?

Tony P
22-10-2011, 00:07
Generally -
Most (but not all) countries have Double Taxation Treaties or Agreements whereby credit for tax suffered in one country is given in the other where you are Resident for tax purposes. They vary.

To complicate this, it is possible in some countries (including UK) to be Resident for tax purposes in more than one country at the same time - even for some considerable time after leaving.

Basically you must refer to the specific arrangement between RUS (presumably were they, and you, consider you to be Resident for tax purposes) and the country where this other income originates - as well as any other country that might possibly still consider you to be Tax Resident under their rules.

If the income is unknown to RUS and is not brought into RUS you might consider remaining quiet about it - if your respect and integrity to your host and past countries is sufficiently low. And you are not averse to the risk and consequences of being found to be defrauding your host country.

Not a very helpful reply I am afraid. More info could narrow it down a bit and I could probably give a slightly more definitive reply.

Although I am no expert on International or RUS tax, I do know quite a bit of UK tax and how they operate. I also know some in relation to UK Residency and non-Residency - a complicated, currently undefined area but should change following the recently completed UK Treasury Consultation Period on proposed changes promised by Cameron/Osborne that should take effect from next year.

bjolso
22-10-2011, 11:10
Thank you for replies. The main reason to declare it is that I am bringing it into Russia and want to have documentation of where the money originates from, to rule out any problems. I have checked about double-taxation treaties and know that there is one. I also have the full text of the treaty in russian, so I suppose I can refer to that document. I have read it and checked carefully that it applies in my case. The salary referred to is currently my only income ("some" just meant that it is not full-time work). For prolongation of the PRP and/or citizenship application I will be using a spravka from the bank showing that I have sufficient means to live on. I also generally want to be a law-abiding resident and openly declare to the FNS how I make a living.

If anyone has done this (tax-exemption, that is), what documents did you bring to the FNS and how complicated was the processing? Calls to the local FNS office have not given many clues about how to proceed..

Hans.KK
22-10-2011, 13:10
I get a written statement from my "income" countrys tax authorities telling the income and the tax I had paid, and Apostille stamped.

This and a copy of the double-taxation treatie (just to remind them that this still exist), and a printout of the Sperbank currency rates (so they can calculate into RUB) is given to FMS.

They always wants an official paper from Sperbank, but Sperbank do not give such, so a little “speaking” about that is always there.

ilya25
22-10-2011, 17:16
Thank you for replies. The main reason to declare it is that I am bringing it into Russia and want to have documentation of where the money originates from, to rule out any problems. I have checked about double-taxation treaties and know that there is one. I also have the full text of the treaty in russian, so I suppose I can refer to that document. I have read it and checked carefully that it applies in my case. The salary referred to is currently my only income ("some" just meant that it is not full-time work). For prolongation of the PRP and/or citizenship application I will be using a spravka from the bank showing that I have sufficient means to live on. I also generally want to be a law-abiding resident and openly declare to the FNS how I make a living.

If anyone has done this (tax-exemption, that is), what documents did you bring to the FNS and how complicated was the processing? Calls to the local FNS office have not given many clues about how to proceed..

here what Russian tax code says again what I heard it is not very strightforward in Russia, but you could try

a) You need to present to Russian tax authorities official confirmation that you were a resident (probably both a citizen and tax resident) of the state, with which Russia has a tax treaty
b) document stating your income and taxes paid validated by the tax authorities of foreign country
c) You could submit the docs within 1 year after the relevant tax period (calendat year in Russia)
Apperently docs should be translated into Russian and notorized

2. Для освобождения от уплаты налога, проведения зачета, получения налоговых вычетов или иных налоговых привилегий налогоплательщик должен представить в налоговые органы официальное подтверждение того, что он является резидентом государства, с которым Российская Федерация заключила действующий в течение соответствующего налогового периода (или его части) договор (соглашение) об избежании двойного налогообложения, а также документ о полученном доходе и об уплате им налога за пределами Российской Федерации, подтвержденный налоговым органом соответствующего иностранного государства. Подтверждение может быть представлено как до уплаты налога или авансовых платежей по налогу, так и в течение одного года после окончания того налогового периода, по результатам которого налогоплательщик претендует на получение освобождения от уплаты налога, проведения зачета, налоговых вычетов или привилегий.

bjolso
22-10-2011, 19:10
Thanks Hans and Ilya! Now it became clear to me what I need to do.

bjolso
22-10-2011, 20:37
I get a written statement from my "income" countrys tax authorities telling the income and the tax I had paid, and Apostille stamped.

This and a copy of the double-taxation treatie (just to remind them that this still exist), and a printout of the Sperbank currency rates (so they can calculate into RUB) is given to FMS.

They always wants an official paper from Sperbank, but Sperbank do not give such, so a little “speaking” about that is always there.One more question: Do you get some kind of spravka from the FNS showing the sums of the income and deduced tax that they have registered? And can you get such a document right away, or after a few months of processing and waiting time?

Hans.KK
22-10-2011, 22:07
One more question: Do you get some kind of spravka from the FNS showing the sums of the income and deduced tax that they have registered?No I get nothing in return.
Had never been thinking about asking for that, any purpose/use for such a spravka?

SV1973a
22-10-2011, 23:24
Just keep quiet about your foreign income. How can the Russian tax office ever find out about your foreign account, and about the fact that you get a foreign salary.
Who says you`re not a millionaire with a couple of million euros on the bank?

ilya25
23-10-2011, 01:56
One more question: Do you get some kind of spravka from the FNS showing the sums of the income and deduced tax that they have registered? And can you get such a document right away, or after a few months of processing and waiting time?


I guess you could request some sort of the document from tax authorities showing the stautus of settlments

They can also stamp a copy of your Russian tax return