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Thread: News about new migration center on varshavskoe Shosse

  1. #166
    Join Date
    Aug 2007
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    Moscow Orange Line, oh Yeah, I'm movin' on up!
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    Quote Originally Posted by xt-tsi View Post
    Social taxes in Russia are paid by employers, not employees.

    Your tax status won't change if you get the PRP. Income tax rates depend on whether someone is a tax resident in Russia. .

    ..
    I wasn't entirely clear about what I did. I am the owner, founder, and employee of my own company- I issued *myself* an HQS visa.

    There are some pluses to this path:
    --no working unappreciated for way-below-market wages for some school.
    --you can process certain business expenses through your business bank account, to reduce your "profit tax" obligation
    --you can hire your wife to work for minimum wage, allowing her to accumulate work quarters (for pension proposes) and even allowing her to be paid maternity leave, though it will be very small if you pay her minimum wage.
    --all the freedoms that come with working for yourself and not having your employer unduely pressure you due to their visa "card"
    --if you're a tax resident (in country at least 180 days), you only have to pay income tax and the tiny workman's comp tax-you're exempted from the pension & healthcare taxes, which are YUGE!

    Of course the down side is you have to work your butt off to reach that minimum 167k monthly HQS salary, which can be particularly tough in the summer!


    .... So, that's what I was wondering, for anyone who works for himself through his LLC and an RVP or TRP, do you have to pay these hefty social taxes on your own salary? Or is there a legal way (as I mentioned, maybe using dividends instead of a salary?) to get around those??

    (Xt-tsi, did I understand you correctly, are you also exempt from those social taxes if you hold TRP/PRP and work for yourself through your own IP instead of an LLC??)
    Thanks
    I am fascinated by Russia, this country with frigid weather, hard souls, and hot girls!

  2. #167
    Join Date
    Aug 2003
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    USA
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    Nickcool, now I see. Didn't know you were self employed.

    With the simple form sole property business, the only tax payable is the 6% on gross income and about 2% social taxes per year,. I don't use an LLC because I provide consulting and rental services and don't have many costs that can be written off.

    I googled "owner of an LLC can earn dividends from profits to avoid social taxes" in Russian and found this article. It says dividends can be paid to the owner of an OOO quarterly at the 13% tax rate. However, the dividend payment can't be written off, increasing profits for the OOO and the tax exposure. It doesn't say anything about social taxes though:

    https://vc.ru/legal/41058-kak-vyvodit-dengi-iz-ooo

    Here is another article about dividends versus wages:

    https://kontur.ru/articles/4571

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