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Russian Finance Ministry Vows To Cut Non-Residents’ Income Tax In Bid To Lure Investments

The Russian Finance Ministry proposed to reduce the personal income tax rate for non-residents to 13 percent from the current 30 percent, at the same time reducing the minimum period of stay in Russia to maintain tax residence to 90 days down from the current 183 days, according to a draft budget, tax and customs tariff policy for 2020-2022 submitted to the parliament’s lower house

The Russian Finance Ministry proposed to reduce the personal income tax rate for non-residents to 13 percent from the current 30 percent, at the same time reducing the minimum period of stay in Russia to maintain tax residence to 90 days down from the current 183 days, according to a draft budget, tax and customs tariff policy for 2020-2022 submitted to the parliament’s lower house.”It is planned to reduce the actual stay of individuals in Russia to acquire the Russian tax resident status to 90 Calendar days from 183 days over 12 consecutive months and to equalize the personal income tax rate for residents and non-residents of Russia at 13 percent,” the document says.

The document’s authors mention this proposal among measures aimed at stimulating investment in Russia.

The proposed changes imply that Russian citizens who spent 90 days a year in the country and have real estate, economic and personal contacts in Russia, will pay taxes.

Earlier, First Deputy Prime Minister and Minister of Finance Anton Siluanov noted that many Russian businessmen intentionally spend less than 183 days a year in the country, thus avoiding the obligation to report on their foreign assets to the Federal Tax Service and may not pay income tax.

Source: https://www.urdupoint.com/en/business/russian-finance-ministry-vows-to-cut-non-resi-725911.html

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