View Full Version : should teachers pay Russian income taxes?

06-10-2007, 16:42
Here is a question that maybe some of you financially-savvy ones out there know -
I remember that at one time there was a provision in the US/Russian tax treaty against double-taxation saying that a few categories of people were exempt from paying local Russian income tax - we are supposed to pay at home in the US rather than here - and at that time teachers were on this small list.
Does anyone know if this is still the case, that teachers are not supposed to pay local taxes, and if so can anyone supply the text of the treaty (just in case)?

06-10-2007, 20:03
As an employed teacher are you paying anything at the moment? Many employers are advertising net incomes. So I would assume they already pay it on a PAYE system. And if the system is anywhere near what it is in the UK, you would be paid too little to be liable for tax as you are probably being paid below the tax threshold.

06-10-2007, 20:06
For self employed teachers it's 6% on an entrepeneurs registration. Payed Russian taxes of course.

06-10-2007, 20:37
I'm working for an employer who does not pay tax on me, since they are a foreign entity and pay from overseas -
but will I have problems with deposits being made into a bank here? will the tax police come looking for me?

08-10-2007, 12:35
Source: Издательский дом «Коммерсантъ» (http://WWW.KOMMERSANT.RU), October 8, 2007
Title: Pochinok Proposes Tax on Private Enterprise in Russia

Alexander Pochinok, former head of the State Tax Service, called on the State Duma to pass a new version of the Tax on the Incomes of an Individual Entrepreneur chapter the Tax Code.
In June 2007, Pochinok became a senator on behalf of the Krasnodar regional government. As proposed, each municipality, as well as Moscow and St. Petersburg, will separately decide whether to introduce the tax, setting its rate within the limits set by the federal government. As a result, local taxes will be flexible and adapted to local conditions. Pochinok is seeking to redistribute the taxes being paid by individual entrepreneurs from regional to local budgets rather than increasing the tax burden on business people. Around R40 billion could be redistributed in this way.