As a brief reminder due to the pandemic, the following migration documents for foreign citizens with the expired date 15 March 2020 such as: registration certificates, visas, refugee immigrant certificates, temporary residence permits, residence permits and migration cards, has been extended until 15 December 2020 based on the Presidential Decree No. 274 of 18 April 2020.
Founded on the Presidential Decree No. 791 as of 15 December 2020 (hereinafter – “Decree 791”) the abovementioned documents of foreign citizens remain automatically valid until 15 June 2021. This means that foreigners whose documents expired or will expire during the period of 15 March 2020 – 15 June 2021 may continue to stay in Russia safely without violating the migration law.
However, it does concern citizens of countries which renewed regular transportation with Russia before 15 December 2020 or will renew transport links after the entering into force. If you are a citizen of such a country, or have a residence permit in such a country, then your documents are extended for:
Please be aware that “renewed transportation” doesn't mean special flights related to foreign citizens returning to their countries. Thus, on 25 January 2021, the following countries were included in the list with regular transport links renewal: Great Britain, Tanzania, Turkey, Switzerland, Egypt, Maldives, United Arab Emirates, Kazakhstan, Kyrgyzstan, The Republic of Korea, Cuba, Serbia, Japan, Seychelles, Ethiopia, Vietnam, India, Qatar, Finland.
Other important changes are related to the Personal Income Tax of tax residents of the Russian Federation. Starting from 1 January 2021, the tax rate is progressive (in particular 13% and 15%). Threshold of taxable personal income is 5 million roubles (approx. EUR 55,600 applying the average exchange rate 90 RUB per EUR). The Russian government will use this additional 2% increase in personal income tax to treat children with rare diseases.
These changes will affect the following types of income of Russian tax residents (including foreign individuals who obtain this status): wages of individuals, dividends, coupon income on bonds, incomes from securities, etc.1
The procedure of withholding tax by tax agents (i.e. employer, broker, issuer of securities) still remains the same. If the tax base of the individual’s income exceeds the threshold starting from 1 January 2021, then the tax agent will apply the 15% rate for an income that exceeds the mentioned threshold.
You should note that there is no requirement for an employer or other tax agent to check if the individual receives other incomes from other sources. If the income received by the individual from each particular source does not exceed the threshold, then at the end of the calendar year the tax authorities should independently calculate personal income tax related to the annual income of an individual from different sources and, in the case of total income exceeding the threshold (i.e. 5 million roubles), then a tax notification will be sent to the individual requesting payment of an additional 2% of underpaid tax.
1 paragraph 2.1. of article 210 of Tax Code of the Russian Federation
With this newsletter we give an overview of recent or expected changes in the area of Global Mobility in different countries.
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