View Full Version : Tax residence

27-11-2013, 11:38
Just checking if I have correctly understood the concept. If you have dual citizenship (RF + another) you should pay taxes in Russia as follows:

- If spending >= 183 days per year in Russia, you pay 13% on your total income, regardless of where you earned it.

- If spending < 183 days per year in Russia, you pay 30%, but only on the income you have earnt in Russia (nothing on income earnt abroad).


27-11-2013, 12:02
It doesn't have to do anything with your citizenship unless your from the US or Eritrea - both countries will always tax their citizens no matter where they live or earn their money.

Usually people have income from only one county at a time. Let's say you live and work in Sweden and in the middle of the year you relocate to Russia and start working here. Then up until you quit you job and leave Sweden you'll pay your taxes in Sweden. And you'll have to pay Russian taxes from the day you start making money in Russia. Straight forward when there's a clear cut.

It does get more tricky when you have income in two countries at the same time. For example when you rent out an apartment in one country but live in another one. In most cases this is regulated through double taxation agreements between two countries and might differ from country to country and also depend on the type of income.

Also, as you were saying when you move to Russia you pay 30% income tax during the first 183 days in the country. Once you pass this limit your tax rate drops to 13% and most likely you'll be able to get back the differential. If you're lucky enough to work here as a highly qualified specialist the 13% apply right from the start.

27-11-2013, 12:59
Correct?It is more tricky, first of all it has nothing to do with your citizenship, except that they may tax you for all you income no matter where you earned it, it depend on the tax rules in the country where you have you citizenship. Check the tax rules there first, if more than one citizenship = check all these places too.

Next thing is where (country) you have your residence, they may want to tax you too. Check the tax rules here, if more than one residence = check all these places too. And it is not your definition on residence, it is the country where you stay that set the rules.

The country where you had earned you money may not consider you as a residence, but they may want you to pay tax, check it.

Then there may be a tax treaty between the countries where you may be taxed (country of citizenship, country of residence, and country where you had earned your money), check it.

It is not easy, if you want to do it by the book, contact the authority in the appropriate country's where you are having your citizenship, residence, and where you had earned your money.