Tuesday, December 6 2016 12:18

ArmInfo. Armenia, Belarus, Kazakhstan and Kyrgyz nationals revenues are taxed with Physical Persons Revenue  Tax (PPRT) with 13% rate from the first day of employment. This is stated in Federal Tax Service (FTS) report letter  published at Bookkeeping  Online site.

The source states that even if based on results of fiscal  period those persons will not obtain an RF  tax resident status, the tax rate will not change to higher , and there will be no need to recalculate the taxes.   The authors of the letter remind that there is an EEU Agreement  is valid from January 2015.

The Article 73 of the agreement states that EEU countries nationals employed are subject to be taxed with the same rates that for resident tax payers of the countries that foreign nationals are employed at. The clauses of this article are applicable in respect to revenues obtained from being hired to job.  Russian resident tax payers are taxed with 13% rate. Hence, the EEU countries nationals employed in Russia are to be taxed with the same 13%rate from the very first day of their employment.

Meanwhile  the Ministry of Finance states that if a non-resident employee  has not obtained as resident status until the end of fiscal period, than a 30% rate should be applied to his revenues. The FTS disagrees with such a position. The authors of the letter accentuate that the Article 73 of the Agreement mentioned does not set forth a requirement of taxes recalculation. Hence, the  physical persons revenues are taxed with 13% rate regardless obtaining resident status until the fiscal year end.