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TransitionState
15-05-2008, 23:12
Can the Americans on this board chip in on how to deal with taxes while working in Russia? I will be working as a local hire for a non-American entity and I am as unclear as it gets on how the taxation is going to work for me.

My understanding that Russian taxes are flat 13%. Is that deducted directly from my pay, inlcuding any bonuses, or is there a declaration that get to fill out?

How do I file the US taxes? Obviously, I will not be getting a W2 or a 1040. What proof on income do I need to provide? What deductions are allowed while filing abroad? Can I deduct Russian taxes? Have you even gotten audited and what was it like?

MissAnnElk
15-05-2008, 23:15
Oh, you probably should talk to someone who deals with US expats and their taxes.

I know the US taxes you on your worldwide income but that you can usually deduct your foreign taxes paid, assuming the country you pay taxes to has an agreement with the US. And somewhere around $80,000 of your income is exempt from paying US taxes as long as you are not in the USA more than 34 days each calendar year. You also get an extension if you are an expat . . . but you may have to file for it. My tax guy always dealt with this, but this year we finished by April 15 anyhow.

But in terms of paperwork, I dunno.

I can give you the name of my tax guy in NYC . . . someone else may have a local accountant.

We have never been audited and we've been doing this since 1999. But we have always been careful about following the rules.

TransitionState
15-05-2008, 23:21
I can give you the name of my tax guy in NYC
Yes, please, if you do not mind.



We have never been audited and we've been doing this since 1999. But we have always been careful about following the rules.
That sounds reassuring :)

Murakami
20-06-2008, 20:26
I can give you the name of my tax guy in NYC . . .

I'm from NYC. Would you mind forwarding me his/her information as well? Thanks.

MissAnnElk
20-06-2008, 20:46
Done.

seumark
20-06-2008, 21:02
does anyone know how much sales tax is charged? for example a 700 ruble mattress at IKEA, what is the tax on top of that?

cheers!

MissAnnElk
20-06-2008, 21:29
does anyone know how much sales tax is charged? for example a 700 ruble mattress at IKEA, what is the tax on top of that?

cheers!

Russian VAT (I don't think there is a sales tax) is 13%, right? The 700 rubles includes the VAT.

Anyone?

MissAnnElk
21-06-2008, 13:20
does anyone know how much sales tax is charged? for example a 700 ruble mattress at IKEA, what is the tax on top of that?

cheers!

I think it is 18%. Of the 700 rubles for the mattress, 18% is tax. Look at any receipt . . . even in a restaurant. It shows that 18% of your total bill is tax.

DooLittle
21-06-2008, 14:03
I think it is 18%.

It is - it used to be 20% and Medvedev is thinking of lowering it I believe. It's great that income tax is so low - but they always make up for it in different ways :)

RRM
21-06-2008, 14:08
I always think thats the best way. Remove income taxes and only have sales taxes. The more you spend the more you pay. Luxury goods could be taxed differently as well if the intention is to get more from the rich.


It is - it used to be 20% and Medvedev is thinking of lowering it I believe. It's great that income tax is so low - but they always make up for it in different ways :)