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bennnjo
18-05-2013, 08:57
Quick questions guys, when i start work in Moscow should i have my salary deposited into an Australian bank account would i be able to dodge the taxes that way? and intrest etc??? whats the best way to go about it

frankjohn2
18-05-2013, 09:06
If you are uninterested in participating in the local economy by paying your fair share of taxes, then don't come. Russia has enough tax cheats. We don't need any more here.

Anyways, it is mandated by law to have your salary deposited into a Russian bank account so give up your dreams of cheating the system. But then again, you don't seem to care about laws...

MashaSashina
18-05-2013, 12:00
If you're going to work for international company, and it's Australian branch will pay your salary to your Australian bank account, then this part of your salary will not be taxed.

penka
18-05-2013, 12:11
If you're going to work for international company, and it's Australian branch will pay your salary to your Australian bank account, then this part of your salary will not be taxed.

I think if the man is working for an Australian branch in Russia, his job will pay the taxes for him.

MashaSashina
18-05-2013, 12:32
I think if the man is working for an Australian branch in Russia, his job will pay the taxes for him.

yes, it will, for his income here in Russia. No matter to which account it is sent.
Some people receive part of their salary in foreign branches, sometimes the biggest, like for working for HQ, and that part has nothing to do with Russian taxation. If he earns here, to matter where exactly his money are sent, his income is the object of Russian tax law.
why should it be important who pays, he or his employer? Or I don't follow the question? Could you please clarify? :-)

penka
18-05-2013, 12:40
yes, it will, for his income here in Russia. No matter to which account it is sent.
Some people receive part of their salary in foreign branches, sometimes the biggest, like for working for HQ, and that part has nothing to do with Russian taxation. If he earns here, to matter where exactly his money are sent, his income is the object of Russian tax law.
why should it be important who pays, he or his employer? Or I don't follow the question? Could you please clarify? :-)

No, just referring to his original question - the guy is a potential tax evader. But, if his company pays, he doesn't need to bother about going into some illegal activity.

MashaSashina
18-05-2013, 12:48
yes, chief accountant will not ask if any employee would like to cheat on tax office. all taxes will just be paid.

penka
18-05-2013, 12:50
yes, chief accountant will not ask if any employee would like to cheat on tax office. all taxes will just be paid.

Naturally.

Alan65
18-05-2013, 13:02
yes, chief accountant will not ask if any employee would like to cheat on tax office. all taxes will just be paid.

I thought cheating the tax office was an mandatory inteview question, providing you answer yes you then get the job :book:

bennnjo
19-05-2013, 14:21
If you are uninterested in participating in the local economy by paying your fair share of taxes, then don't come. Russia has enough tax cheats. We don't need any more here.

Anyways, it is mandated by law to have your salary deposited into a Russian bank account so give up your dreams of cheating the system. But then again, you don't seem to care about laws...

I will start by saying your a w+nker! I asked a simple question because i have worked in the Arab Emirites as an expat and not have had to pay taxes.. i don't have a problem with paying tax or contributing to society i also ask this because it seem Russia has numerous taxes that are either over inflated or are not spent on contributing to the economic status or "Russia" instead they end up in the pockets of politicians or corruption.. so if your naive enough to think your taxes are being spent "Participating in the local economy" i feel sorry for you! Thank you to everyone else who posted helpful comments.

tonytony
19-05-2013, 20:26
I will start by saying your a wanker! I asked a simple question because i have worked in the Arab Emirites as an expat and not have had to pay taxes.. i don't have a problem with paying tax or contributing to society i also ask this because it seem Russia has numerous taxes that are either over inflated or are not spent on contributing to the economic status or "Russia" instead they end up in the pockets of politicians or corruption.. so if your naive enough to think your taxes are being spent "Participating in the local economy" i feel sorry for you! Thank you to everyone else who posted helpful comments.


First off, I would say that he doesn't come across as being a w**ker - and, really, there's no need to use that sort of language anyway is there?

Then, to get to your point, it appears that you don't really understand why you didn't pay any tax in the UAE. It had nothing to do with you hiding your money in an offshore account, it's simply a case of there being no personal income tax in the UAE anyway.

Presumably, you'll be in Russia on a HQS visa, in which case you'll only be paying income tax at 13% and you're moaning about that?

Compared to Australia or the UK, Russia is a bloody tax haven when it comes to income tax, if you're on a half decent salary

aibce
19-05-2013, 22:02
Better to pay the 'white' taxes and not play games. It can go very badly for you and your visa if you are reported or found out.

AstarD
20-05-2013, 10:59
Your company in Russia will withhold your tax obligations and pay them to the Russian government. The rest of your salary will be deposited electronically into a Russian bank, from which you can withdraw cash or you can transfer to a bank in your home country.

Until you have been in the country 183 days out of the prior 12 months, your company will withhold 30%. After that, they will withold only 13% and reimburse you for the 17% extra that they withheld until you became a tax resident.

Devonpoint
24-05-2013, 10:41
Excuse me for jumping in on the tail of this thread but I would like a bit of help in clarifying my understanding of tax liability.

I have been offered some work in Russia from July till Dec. but only as a contractor, not employed. So if i have understood the info posted by some Financial Services I see that I will be a Non-Resident and eligible for 30% tax, 30 days prior to leaving in Dec. i need to send in a Tax declaration and pay up for the money earnt for this 6 month period. Correct?

What sort of money would it cost to have a private firm file the tax for me?

If i come back in 2014 as an employee to the Rus. based firm then I start on the Resident basis new visa and from what you're saying AstarD I need to factor in that the company will hold back 30% tax until I have done more than half a year's work for them.

MashaSashina
24-05-2013, 12:07
Devonpoint, will you have an HQS work permission? If yes, you'll pay 13% from work-related income.
There is a chance, that the company you will work for, will be your tax agent and pay related taxes, even if you're a contractor, not employee.
You become a tax resident after 183 days of living in Russia, not after half a year of working for a certain company. So, depending on the length of your Christmas break, you can become a tax resident in January. Unless you're an HQS already.

Devonpoint
24-05-2013, 13:48
Hi Masha,

Thank you for the reply. Unfortunately I don't think the company will support me as a contractor with the HQS this year.

But next year they will as an employee, so basically in 2014 I will be a local resident and on 13%.

What concerns me is how to do this year's 6 month assignment correctly as a contractor non-resident and pay what is due.

MashaSashina
24-05-2013, 15:24
Hi Masha,

Thank you for the reply. Unfortunately I don't think the company will support me as a contractor with the HQS this year.

But next year they will as an employee, so basically in 2014 I will be a local resident and on 13%.

What concerns me is how to do this year's 6 month assignment correctly as a contractor non-resident and pay what is due.
I would suggest to ask the company representative. Seriously, this is not the situation of one and only possible way. There may be details which are important. If they reply that they have nothing to do with your income, I'll try to investigate what are your options.
Just saying. My employer pays personal income taxes even for strangers, who just won our lottery. And for those who provide us service by civil agreements as well.
And if next year you're going to work for same company they may wish to get HQS status for you from the beginning, they may have their own interest about this (e.g. social contribution).

Bogatyr
24-05-2013, 18:01
Hi Masha,

Thank you for the reply. Unfortunately I don't think the company will support me as a contractor with the HQS this year.

But next year they will as an employee, so basically in 2014 I will be a local resident and on 13%.

What concerns me is how to do this year's 6 month assignment correctly as a contractor non-resident and pay what is due.

What will be your legal basis of working for the company? In case you're concerned about such things.... With no work visa, no HQS arrangement, no residency (either temporary or permanent) allowing you to register as an individual entrepreneur, you do not have the right to work in Russia, unless I'm missing something...

HomerBoy
24-05-2013, 20:03
I would suggest to ask the company representative. Seriously, this is not the situation of one and only possible way. There may be details which are important. If they reply that they have nothing to do with your income, I'll try to investigate what are your options.
Just saying. My employer pays personal income taxes even for strangers, who just won our lottery. And for those who provide us service by civil agreements as well.
And if next year you're going to work for same company they may wish to get HQS status for you from the beginning, they may have their own interest about this (e.g. social contribution).

Whatever period you work in mother Russia, you do need WP, HQS or otherwise

Your income will be taxed at 30% until you complete 183 days, which after you will be taxed only 13% with refund of the variance from 30%

Keep in mind, without a WP, it is illegal to work in Russia, if caught , highly unlikely but , you could be deported and barred from re entry

Devonpoint
25-05-2013, 11:50
To be honest this has raised more questions than I have answers for. I'll have to go back and see what the Gaffer has to say.

I thought it was simply a case of getting a work visa with a 6 month validity sponsored by the firm....as it was 10+yrs ago.

Thing is though, if you were to only go for a 3 week trip would you be expected to pay tax?....likewise a 3 month trip?......when do you have to start?

MashaSashina
25-05-2013, 15:17
To be honest this has raised more questions than I have answers for. I'll have to go back and see what the Gaffer has to say.

I thought it was simply a case of getting a work visa with a 6 month validity sponsored by the firm....as it was 10+yrs ago.

Thing is though, if you were to only go for a 3 week trip would you be expected to pay tax?....likewise a 3 month trip?......when do you have to start?

Only in case you had income in Russia.

Sadarr
26-05-2013, 23:32
If you are uninterested in participating in the local economy by paying your fair share of taxes, then don't come. Russia has enough tax cheats. We don't need any more here.

This guy is on dope. Check with all the relevant office folks, both in country and at home. If there is nobody in the Russian office who you trust to give an honest answer, get your salary sent to an account out of the country and sort it out later. The local economy is obviously made up of people like yourself who live and work here. :doh:

Bogatyr
28-05-2013, 16:21
Only in case you had income in Russia.

It depends which / how many laws you want to break:

+ Working in Russia without the right to work.

+ Working in Russia without not paying taxes.

Paying taxes on work done without the right to work only satisfies one of the requirements. The tax agency will say 'thank you very much for your payment', but the УФМС can still get you for working without permission.

Bogatyr
28-05-2013, 16:24
To be honest this has raised more questions than I have answers for. I'll have to go back and see what the Gaffer has to say.

I thought it was simply a case of getting a work visa with a 6 month validity sponsored by the firm....as it was 10+yrs ago.

Thing is though, if you were to only go for a 3 week trip would you be expected to pay tax?....likewise a 3 month trip?......when do you have to start?

Without authorization to work (the right kind of visa, work permit, residency, etc.), the length of stay is irrelevant. 3 months, 1 day, or 10 years. "But lots of people do it" is not a defense if the УФМС nabs you.

Bogatyr
28-05-2013, 16:28
If you are uninterested in participating in the local economy by paying your fair share of taxes, then don't come. Russia has enough tax cheats. We don't need any more here.

This guy is on dope. Check with all the relevant office folks, both in country and at home. If there is nobody in the Russian office who you trust to give an honest answer, get your salary sent to an account out of the country and sort it out later. The local economy is obviously made up of people like yourself who live and work here. :doh:

Nope, the dope(s) are those who advocate not participating in the economy. IMO.

Practially speaking, if one has no investment in Russia and does not care about being banned for years or for life from entering Russia, there is little risk to working illegally "like so many others do." But for those who intend to align their future with Russia, why take the chance?

MashaSashina
28-05-2013, 16:56
It depends which / how many laws you want to break:

+ Working in Russia without the right to work.

+ Working in Russia without not paying taxes.

Paying taxes on work done without the right to work only satisfies one of the requirements. The tax agency will say 'thank you very much for your payment', but the УФМС can still get you for working without permission.

The question was when do you start paying taxes.
I replied: when you have income here.

Bogatyr
28-05-2013, 17:59
The question was when do you start paying taxes.
I replied: when you have income here.

Yes, but it is only part of the story. For people who want to stay 100% legit, they should know the full situation.

inorcist
30-05-2013, 11:48
I wonder on what type of visa he'll be here ...
A) Business visa, then he's out after three months
B) Work visa, then it's anyway his employers duty to pay the taxes.

But I was of the impression that almost all companies now get their foreign employees HQS visas, as soon as they need to stay in Russia for more than three months.

Something in the story doesn't seem to make sense here.