Individual taxation

Individual Income Tax

Individuals, irrespective of citizenship, should pay Russian individual income tax on:

• worldwide income if the individual is a Russian tax resident, i.e. who spends 183 or more days in Russia in the calendar year
  
  
• income for work in Russia or from Russian property and investment if the individual is a tax non-resident, i.e. who spends fewer than 183 days in Russia in a calendar year.

Individual income tax of 13% is applied to most types of income of Russian tax residents with the following exceptions:

• interest income above the allowed limits (9% for foreign and 13% for Russian currency) - 35%
  
  
• material gain on interest free or low interest loans (interest levels are similar to the above) and arising from receiving benefits in-kind at below market rate or free - 35%
  
  

Non-residents should pay tax on all types of income at 30% tax rate if not stated otherwise in the relevant double tax treaty.

Russian individual income tax provides Russian tax residents with exemptions resulting from the acquisition and sale of real estate and other property. There are also professional deductions related to the creation of intellectual property or to the provision of non-employee services.

Individual income tax is withheld at source and if withholding is impossible paid by the individual upon submitted declaration. Declarations should be submitted by April 30th and should refer to the previous tax year ending July 15th.

There is no family taxation.