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  1. #1
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    NEW work permit rules

    From Expat Telegraph:

    On July 1 2010, the Federal Law on the Legal Status of Foreign Citizens will come into force in Russia.
    The legislation aims to simplify the complicated rules which govern the hiring of foreign workers in the country, and make it easier for Russian companies to hire skilled expats.
    Under previous rules, work permits for foreign workers were valid for a maximum of one year, and could take up to a year to obtain.
    The legislation introduces a new term, “highly qualified foreign professional,” which applies to foreign citizens with key skills in a particular field, and whose salary in Russia will be at least two million rubles (around £43,000 per year).
    Employers will be able to obtain work permits for these professionals for up to three years, which can be renewed on a three yearly basis if a contract is agreed upon by the parties.

    Evgeny Reyzman, a legal counsel at law firm Baker and McKenzie in Moscow, said that the new legislation would have a positive effect on Russia’s economy. “Before, the system was very inflexible and burdensome. Companies had to seek permission to employ a foreign worker, which was very time consuming and costly.
    “Now, not only will businesses be able to hire specialists more easily, but the amount of specialist workers that can move here will not be subject to any quotas. This will make investment in Russia much more attractive.
    “Additionally, a working permit will automatically qualify skilled foreign workers for residency permits, which did not happen before.”

    Does anybody know anything about this new law?

    I have just received my new work permit, but I don't earn 43000 pounds. Can I apply for residency anyway, or is residency only for very highly paid professionals? Does this mean that poorer professionals/teachers will still be obliged to pay a large sum of money to get a place on the annual quota for temporary residency?

  2. #2
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    I can't answer your question but I am glad to see that you are back. Welcome!

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    There are some 20 regulations currently being prepared in relation to this new Law. Needless to say, none of these are expected to be issued before 1 July. One may deal with this option for "permanent residency" status, but this will apparently ONLY be valid for the duration of the employment contract. It is currently a mystery why anyone should therefore want to apply for this status. One reason for NOT applying would seem to be a permanent resident would have to take the Russian driving test in order to drive legally.

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    NEW work permit and residency rules

    Thanks!
    I suppose if it sounds as if it is too good to be true (or better and new), it probably is.

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    I have just received my new work permit, but I don't earn 43000 pounds. Can I apply for residency anyway, or is residency only for very highly paid professionals? Does this mean that poorer professionals/teachers will still be obliged to pay a large sum of money to get a place on the annual quota for temporary residency?
    toughnut- the new rules are about work visas and they are for employers. There is a quota for work visas but highly paid specialists will now be outside the quota.

    Residency is not connected with work- you can get residency and be unemployed if you have money to support you in a Russian bank.
    The first step to residency is temporary residency :TRP or вид на временное проживанное. To get this you need either to get in the TRP quota (not the work visa quota) or be married to a Russian citizen. And yes - it is in practice necessary to 'buy' a place on the quota if you want residence in a big city like Moscow and you are not married to a Russian.

  6. #6
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    Thank you, but...

    “Additionally, a working permit will automatically qualify skilled foreign workers for residency permits, which did not happen before.”
    Thank you. But does this not mean these highly paid skilled workers can get TPR etc without marrying somebody who is Russian or buying a place on the quota for Moscow?

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    2 million salary? cash only?

    or would that be considered as a lump sum and can include paid housing, car with driver, and so forth. then the actually 'salary' could be quite less and more of 'us' could qualify.
    There is no greater treasure then pleasure....

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    Quote Originally Posted by Benedikt View Post
    or would that be considered as a lump sum and can include paid housing, car with driver, and so forth. then the actually 'salary' could be quite less and more of 'us' could qualify.
    The real question - why not just pay the total package to the employee, and they can then pay for accommodation, etc. themselves? There is no difference from a tax perspective, because "benefits in kind" are taxed as regular income.

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    because

    Quote Originally Posted by DavidB View Post
    The real question - why not just pay the total package to the employee, and they can then pay for accommodation, etc. themselves? There is no difference from a tax perspective, because "benefits in kind" are taxed as regular income.
    sometimes companies buy apartements as and investment and to use for their key employees and it is cheaper for them in the long run, to provide accomodation, and a car with driver, at the going rate,instead let an employee look for it. also, if a 'new' guy comes to town, he should start working immideately and justify his high salary and not spend time flat hunting and the like.( that's how it was explained to me...)
    There is no greater treasure then pleasure....

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    Quote Originally Posted by Benedikt View Post
    sometimes companies buy apartements as and investment and to use for their key employees and it is cheaper for them in the long run, to provide accomodation, and a car with driver, at the going rate,instead let an employee look for it. also, if a 'new' guy comes to town, he should start working immideately and justify his high salary and not spend time flat hunting and the like.( that's how it was explained to me...)
    I understand now - originally thought you were talking about a normal accommodation allowance.

    In this case, I think the easiest would be to write the total salary amount on the employment contract. Then have the employee sign a separate contract for apartment rental and car/driver. Each month, the employer could deduct the apartment/car/driver expenses from the total salary. Permission to make automatic deductions should be included in the separate contract.

    The only thing you should be careful of, is that the prices charged to the employee for the apartment and car/driver should be "market" prices (i.e. arm's length pricing). That is definitely one of the more subjective areas of taxation law, so a good tax consultant is essential.

  11. #11
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    can anyone recommend a good tax consultant ?

  12. #12
    Wybrich de Haan Guest
    can anybody help me with a good website/adviser/leaflet etc on how to get a working permit in Russia?

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