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Personal Income Tax

Tax residency

Individuals who are defined as “Russian tax residents,” i.e. those who have been in the country for 183 days or more during any 12 consecutive months, are subject to individual income tax on all their income, both income earned in Russia and income earned elsewhere. Individuals who do not meet this criterion are subject to tax on any income received from Russian sources.

Tax rates

The applicable tax rates depend on the income source and personal situation of the individual. The most common tax rates are:

  • A 13% tax rate is applicable for the yearly income up to 5.000.000 RUB received by Russian tax residents

  • A 15% tax rate is applicable for the yearly income over 5.000.000 RUB received by Russian tax residents

  • A 30% tax rate is applicable to Russian-source income received by non-residents

  • A 35% tax rate is applies to interest on bank deposits exceeding established limits, as well as deemed income from a beneficial loan

  • Foreign nationals who have not yet obtained Russian tax resident status but are recognized as highly qualified foreign specialists for the purposes of Russian employment legislation are taxed at 13/15% on their Russian salary

Personal income tax deductions 

Individuals are allowed to deduct from taxable income certain expenses. The list of deductible expenses is limited and the deductions are maximized to certain amounts. Most common deductions are for education, house acquisition and medical expenses.

Personal Income Tax filing deadlines

Personal income tax declarations should be filed to the tax authority not later then the 30th day of April, following the expired tax period.

Personal Income Tax payment deadlines

The due amount of personal income tax should be paid not later than the 15th day of July, following the expired tax period.

Personal Income Tax consultancy by LowLands Accounting Services

Our (English speaking) specialists are ready to:  

  • Advise on Russian and international personal income tax matters

  • Prepare and assist with the filing of personal income tax returns in Russia

  • Assist with remitting the tax payments in Russia

  • Assist in communications with the Russian tax authorities

  • Facilitate the acquiring of documents requested by foreign tax authorities for double tax treaty provisions application purposes

  • Prepare reports on foreign accounts of Russian currency residents for currency control purposes

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Personal Income Tax