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Lapmaster
17-10-2013, 14:54
Hi @ all,

I have a question that even with google and all the other posts I could not clearly answer so far...

For checking the tex residency status the days spend in Russia are counted, so far so clear. But for those who ofte travel, how are travel days counted, If e.g. I am flying out every Friday abroad and return e.g. on monday morning to Moscow, does such week then count with the maximum (5, Mo-Fr) or minimum (3 (only tue-thu fully spent in RU)?

Thanks for your advice!!!
Matthias

AstarD
17-10-2013, 15:36
Ernst & Young says:
For tax purposes, individuals are considered resident if they spend not less than 183 days in Russia in a period of 12 consecutive months. At the moment of writing, the Ministry of Finance and the Federal Tax Service were continuing to promulgate a view that an individual must also spend at least 183 days in Russia in a calendar year to be considered tax resident, and this is followed in practice.

As regards counting of arrival/departure days for tax residency determination purposes, the current approach of the Ministry of Finance appears to be that any part day in Russia is viewed as present. At the same the methodology for days count is not defined in the law and previously the Ministry of Finance considered that days of arrival are not to be counted as days in Russia, whereas days of departure are counted as full days in Russia. We recommend seeking additional advice in case of any disputable situation with respect to the determination of Russian tax residency status of an individual.

Accordingly, non-residents are those individuals who do not meet the aforementioned test.

**From Doing Business in Russia 2012, Employee Aspects (http://www.ey.com/Publication/vwLUAssets/DBIR-Employee-aspects-2012/$FILE/DBIR-Employee-aspects-2012.pdf).

ilya25
26-10-2013, 00:57
Ernst & Young says:
For tax purposes, individuals are considered resident if they spend not less than 183 days in Russia in a period of 12 consecutive months. At the moment of writing, the Ministry of Finance and the Federal Tax Service were continuing to promulgate a view that an individual must also spend at least 183 days in Russia in a calendar year to be considered tax resident, and this is followed in practice.

As regards counting of arrival/departure days for tax residency determination purposes, the current approach of the Ministry of Finance appears to be that any part day in Russia is viewed as present. At the same the methodology for days count is not defined in the law and previously the Ministry of Finance considered that days of arrival are not to be counted as days in Russia, whereas days of departure are counted as full days in Russia. We recommend seeking additional advice in case of any disputable situation with respect to the determination of Russian tax residency status of an individual.

Accordingly, non-residents are those individuals who do not meet the aforementioned test.

**From Doing Business in Russia 2012, Employee Aspects (http://www.ey.com/Publication/vwLUAssets/DBIR-Employee-aspects-2012/$FILE/DBIR-Employee-aspects-2012.pdf).

I d' stick to concervative approach and don't count arrival day as a day of presence in Russia esp if total number is getting closed to the limit

inorcist
26-10-2013, 11:44
I d' stick to concervative approach and don't count arrival day as a day of presence in Russia esp if total number is getting closed to the limit

From own experience arrival and departure day count as fully present in Russia. So, when you arrive one day at 23:55 and then leave ten minutes later at 00:05 it counts as two full days.