Changes to the rules for paying fixed personal income tax by foreign citizens: What businesses and individuals should consider

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Changes are planned to tax regulations affecting the procedure for paying fixed advance payments of personal income tax by foreign citizens. The amendments are aimed at expanding the range of individuals liable to pay the fixed tax and adjusting the calculation mechanism.

The proposed changes have a significant impact on both the foreign citizens themselves who are employed, as well as the employers and individuals who employ them.

Expanding the circle of taxpayers

One of the key innovations is the expansion of the list of foreign citizens required to pay a fixed advance payment of personal income tax.

In addition to the existing category of workers carrying out labor activities on the basis of a patent, the obligation to pay a fixed tax is planned to be extended to the following groups:

  • foreign citizens temporarily or permanently residing in the country and working for individuals;
  • persons performing work for personal, household and other needs not related to entrepreneurial activity;
  • foreign citizens carrying out labor activities without permits (patent or work permit).

Thus, the regulation covers a wider range of employment, including informal and private forms of employment relations.

Changing the amount of a fixed payment

The proposed base amount of the fixed advance payment is set at 1,700 rubles per month. However, the mechanism for adjusting it to regional specifics will be retained.

Regional authorities will be able to apply increasing coefficients, which will effectively lead to an increase in the tax burden in certain regions.

Factors affecting the final payment amount:

  • established base size;
  • regional coefficient;
  • additional allowances provided by law.

This means that the actual amount of payment may vary significantly depending on the territory of operation.

Taking dependents into account when calculating taxes

Particular attention is being paid to the taxpayer’s marital status. It is proposed to introduce a mechanism for increasing the fixed payment if the taxpayer has dependents.

Dependents include:

  • minor children;
  • other family members who are dependent.

For each dependent, the fixed advance payment amount will increase by 50% of the base amount.

Practical implications:

  • increase in the tax burden for foreign citizens with families;
  • the need for documentary confirmation of the status of dependents;
  • complicating the calculation of the final tax amount.

Strengthening interdepartmental cooperation

The amendments also provide for increased exchange of information between migration registration authorities and tax authorities.

In particular, it is planned to transfer information about:

  • registration of foreign citizens for migration purposes;
  • availability of a temporary residence permit or a residence permit;
  • persons not registered for tax purposes.

The objectives of these changes are:

  • increasing the transparency of the registration of foreign citizens;
  • identification of persons who fail to fulfill their tax obligations;
  • strengthening control over labor activities.

This means that the possibility of carrying out activities outside the tax framework will be significantly limited.

Potential risks and implications for business

For companies and private employers, the changes create additional areas of responsibility and require a review of current approaches to interacting with foreign workers.

Key risks:

  • Prosecution for the use of foreign labor without compliance with tax requirements;
  • additional taxes and fines;
  • strengthening of inspections by regulatory authorities;
  • increase in administrative burden.

Particular attention will need to be paid to cases of engaging foreign workers for household and personal needs, where control was previously less formal.

Recommendations for adapting to changes

In the context of tax regulation reform, it is advisable to prepare for new requirements in advance.

Practical steps:

  • conduct an audit of current labor relations with foreign citizens;
  • check the availability of permits and tax status;
  • assess the correctness of the calculation and payment of fixed payments;
  • implement procedures for monitoring the presence of dependents and supporting documents;
  • ensure correct interaction with migration and tax authorities;
  • update internal policies and contractual models.

The proposed changes are aimed at increasing the transparency and collection of taxes on the income of foreign citizens. At the same time, they increase the tax and administrative burden on both the workers themselves and those who employ them.

In the new environment, timely adaptation to change is becoming a key factor: correctly setting up tax processes, complying with migration registration requirements, and a systematic approach to risk management.

Comprehensive legal and accounting support will minimize potential negative consequences and ensure compliance with applicable regulations.

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