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UK Matt
12-04-2012, 21:58
Hi,

I have a Moscow contract starting beginning of June which will last 4 or 5 months. I have a UK Limited company that I will be paid into from a UK recruitment agency (who will receive money from Moscow firm).

I know how it works in the UK when working in UK under a UK Limited Company (i.e. pay 20% corporation tax on all income into Limited Co. then I take Dividends and PAYE) - but what is the impact, if any, on taxes with me doing the work in Moscow?

cheers
Matt

DavidB
12-04-2012, 22:17
The impact is that you'll have to register the UK company as a branch or representative office in Russia, and then your salary will be subject to 13% income tax plus some social charges. The government component can end up being as high as 47% of the total cost of employment, and it all on your salary and which kind of visa you have.

I believe there's also something in the labour code which stipulates that your salary must be paid in rubles and in Russia.

If it doesn't work as described way, you're probably being employed illegally, which is very common.