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Thread: Receiving money from abroad

  1. #1
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    Receiving money from abroad

    I am a Brit living in Russia for a couple of years now so I am legally tax resident in Russia. I have a full time job with a salary, and now have the opportunity for a little extra income doing some work for a friend of mine in Australia.

    The question is, how is it best to get the money? As I said I am tax resident here, and as Russia and the UK have a tax agreement, any money I earn while working here is only subject to income tax here. So if I have the money from Australia sent to my UK bank, I shouldn't need to pay any UK income tax on that. Right?

    On the other hand, I could ask my mate to send it direct to my wife's bank account here in Russia (I don't have a bank account - yet). As I understand it though, there is quite a bit of paperwork involved as you need to prove where the money is coming from and for what purpose. Does anyone have any experiences with this?

    Of course, money sent to the UK should also be declared to the local tax man, and any money that I receive here as well. What rate of tax is that subject to? It seems to me that I pay 13% as an employee. But is money received from abroad taxed differently?

    I know that a registered entrepreneur can get income at 6%, but how would that affect my full time work? Can I be an ИП and a salary employee at the same time?

    Anyway, I would be interested to hear everyone else's experiences.

    I hope this message is in the right place. Maybe there should be a new forum for banking and tax questions?

    Thanks in advance

  2. #2
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    It's very easy to open an account here. Takes about half an hour, and you can open accounts in USD, EUR or Rubles.

    You're much better off opening your own account, because Russian citizens have more restrictions on foreign transactions than foreigners do.

    You aren't required to pay tax on transactions through your UK accounts.

    I personally think it's better to have funds wired directly into Russia, because then you have a record of it in case of any questions from the tax service.

  3. #3
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    For tax purposes, there is a category for other income, and you should pay 13% on that income.

    You can register as an individual entrepreneur only if you have a TRP (temporary residence permit). If you only have a work visa, it won't be possible.

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    You should follow the advice of the previous posts, as what I have to say is of another subject. Any income you receive in russia should be paid on a self employed basis. That means that you need an entrepreneurs' licence. So go to to your nearest Russian tax office. When you get this license you will pay 6% of your income. Better still try a tax using a local tax accountant who has couriers for the tax office. As trying to apply can be a headache.

    Quote Originally Posted by Pinocchio View Post
    I am a Brit living in Russia for a couple of years now so I am legally tax resident in Russia. I have a full time job with a salary, and now have the opportunity for a little extra income doing some work for a friend of mine in Australia.

    The question is, how is it best to get the money? As I said I am tax resident here, and as Russia and the UK have a tax agreement, any money I earn while working here is only subject to income tax here. So if I have the money from Australia sent to my UK bank, I shouldn't need to pay any UK income tax on that. Right?

    On the other hand, I could ask my mate to send it direct to my wife's bank account here in Russia (I don't have a bank account - yet). As I understand it though, there is quite a bit of paperwork involved as you need to prove where the money is coming from and for what purpose. Does anyone have any experiences with this?

    Of course, money sent to the UK should also be declared to the local tax man, and any money that I receive here as well. What rate of tax is that subject to? It seems to me that I pay 13% as an employee. But is money received from abroad taxed differently?

    I know that a registered entrepreneur can get income at 6%, but how would that affect my full time work? Can I be an ИП and a salary employee at the same time?

    Anyway, I would be interested to hear everyone else's experiences.

    I hope this message is in the right place. Maybe there should be a new forum for banking and tax questions?

    Thanks in advance

  5. #5
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    Quote Originally Posted by Pinocchio View Post
    I am a Brit living in Russia for a couple of years now so I am legally tax resident in Russia. I have a full time job with a salary, and now have the opportunity for a little extra income doing some work for a friend of mine in Australia.

    The question is, how is it best to get the money? As I said I am tax resident here, and as Russia and the UK have a tax agreement, any money I earn while working here is only subject to income tax here. So if I have the money from Australia sent to my UK bank, I shouldn't need to pay any UK income tax on that. Right?

    On the other hand, I could ask my mate to send it direct to my wife's bank account here in Russia (I don't have a bank account - yet). As I understand it though, there is quite a bit of paperwork involved as you need to prove where the money is coming from and for what purpose. Does anyone have any experiences with this?

    Of course, money sent to the UK should also be declared to the local tax man, and any money that I receive here as well. What rate of tax is that subject to? It seems to me that I pay 13% as an employee. But is money received from abroad taxed differently?

    I know that a registered entrepreneur can get income at 6%, but how would that affect my full time work? Can I be an ИП and a salary employee at the same time?

    Anyway, I would be interested to hear everyone else's experiences.

    I hope this message is in the right place. Maybe there should be a new forum for banking and tax questions?

    Thanks in advance
    Interesting how is your salary is paid since it is supposed to go to your bank account as you are foreigner.

    Re bank transfer - if the amount is small ~5000USD and are not regular you should be OK Make sure that sending party indicates that it is aa private wire

    If you will be getting them regular you'd better file a tax return and declair it as additional income

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