Russia

Tax residency

Under Articles 11 and 207 of the Tax Code of the Russian Federation, individual tax residence is generally determined by physical presence in Russia. Article 207 applies the 183-day rule for determining an individual's tax status, including for withholding purposes, while the final status for the relevant tax year is determined for the calendar year based on Article 11.

• 183-day test: the general rule applies where the individual is physically present in Russia for at least 183 calendar days within the relevant 12-month period. For the general annual tax-residence status, the relevant period is the calendar year, from 1 January to 31 December. For determining tax status at the date income is received, Article 207 applies a separate test based on the 12 months preceding the payment date.
• Special statutory categories: certain individuals are treated as Russian tax residents regardless of their actual time spent in Russia. These include Russian military personnel serving abroad, employees of state or local government bodies assigned to work outside Russia, and certain employees of Russian organisations working abroad under specified intergovernmental agreements concerning nuclear-energy facilities.

Day counting

• 183-day test: the day of arrival and the day of departure are counted. A departure from Russia for short-term treatment or education lasting less than six months does not interrupt the period of presence. The same applies to certain departures for the performance of employment or other duties connected with work or services at offshore hydrocarbon fields.
• Special statutory categories: no day-count threshold applies. The individual's status under the relevant statutory category is determinative.

Tax consequences

The Russian tax year is a calendar year. Russian tax residents are generally subject to personal income tax on their worldwide income, while non-residents are generally subject to Russian tax on Russian-source income, subject to statutory exceptions and applicable double tax treaties.

A significant exception applies to certain remote workers performing their duties from outside Russia for Russian organisations. Their remuneration may be subject to the special tax rules applicable to this category rather than the general 30% rate.

If an individual is treated as a tax resident during the year but is ultimately determined to be a non-resident for the relevant tax year, the tax may be recalculated using the applicable non-resident rates, with credit for tax already withheld. This may result in an additional tax liability.

Migration / EU residence

Russia is not an EU member state, so EU free-movement rules do not apply.

• Foreign nationals: depending on nationality and the purpose and duration of the stay, foreign nationals may require a visa and may use temporary or permanent residence routes under Russian immigration law.
• EAEU nationals: citizens of EAEU member states benefit from certain facilitated rules for entry, stay and employment.
• Immigration status: holding a Russian residence permit does not by itself establish Russian tax residence.

Orientation references

• Tax Code of the Russian Federation, Article 11: contains the statutory definition of an individual tax resident for the purposes of the Tax Code and refers to presence in Russia for at least 183 days in the calendar year.
• Tax Code of the Russian Federation, Article 207: principal statutory provision governing individual tax residence, including the 183-day rule, treatment of certain periods outside Russia and the special categories of individuals treated as residents regardless of their physical presence.
• Russian immigration framework: official rules governing visas, migration registration and temporary and permanent residence for foreign nationals.