How to confirm the status of a tax resident of the Russian Federation: explanations of the Federal Tax Service

As a general rule, people who actually stayed for at least 183 calendar days during the next 12 consecutive months are recognized as tax residents of the Russian Federation. This period is not interrupted in the case of short-term trips (at least six months). The status of a tax resident is determined based on the final results of the calendar year.

Even the presence of a foreign passport or residence permit does not cancel the status of a tax resident of Russia. Only the period of actual stay is important.

The Federal Tax Service of Russia has issued an explanation that in order to confirm the presence of a person outside of Russia or in Russia, one of the following documents must be provided:

• a copy of the passport with the marks of the border control authorities on border crossing;
• receipts for hotel accommodation;
• migration card;
• timesheet;
• other documents on the basis of which it is possible to establish the actual location of an individual in the Russian Federation and outside the Russian Federation.

To obtain the status of a tax resident, you must fill out and send an application for the submission of a document through an interactive service on the FTS website or by mail.

If a person does not have the status of a tax resident of Russia, then the issuance of such a document is not provided for by tax legislation. There is also no procedure for notifying tax authorities of a change in tax status. The main source from which the tax authority learns about the status of a person is annual income certificates, which are submitted by Russian employers and customers.

There are several indirect signs by which the tax service will be able to suspect a change in the status of a person. For example, opening accounts abroad or automatic financial information exchange with a company registered in another country.

Income of non-residents of the Russian Federation from sources of the Russian Federation is subject to personal income tax at the rate of 30%. Also, starting in 2024, the personal income tax began to be levied on the salaries of employees who work remotely from abroad. Thus, the tax must be withheld by the tax agent from residents and non-residents at the rates of 13% and 15%.

If the employer does not notify the tax authority about the non-resident employee, he faces a fine of 20% of the amount to be transferred.

The tax authorities take the following measures to prevent tax violations:

• After examining the employer’s documents on the accounting of working hours
• Through IP address information
• With the help of data from border services