The government has prepared the final version of amendments to the tax legislation, which, among other things, will determine the taxation of employees of Russian companies who have gone abroad. Income from their employment will be taxed at the rate of 13% personal income tax (or 15% for income over 5 million rubles per year) regardless of the status of tax residence, and the tax agent will be a Russian company (as an employer or customer of work).
At the end of May 2023, a bill was submitted to the State Duma for consideration, which provides for a change in the procedure for paying agency personal income tax and rates for this tax. If the amendments are adopted, personal income tax from the income of employees and performers under GPH contracts who have gone abroad will be withheld at other rates.
The procedure for paying the agency personal income tax and its rates depend on the place of provision of services, which is prescribed in the contract, and the status of the tax residence of the employee (contractor).
Place of work (provision of services) — Russian Federation
If the place of rendering services in the contract is Russia, then the employer (customer) pays the tax on the income of the employee or contractor.
Recall that for most GPH contracts, the place of provision of services or performance of work is not an essential condition.
The rate at which personal income tax is transferred to the budget in this case depends on the status of the tax residence of the employee (performer):
Tax resident of the Russian Federation.
The rate of 13% or 15% is applied to the income of the contractor or employee — if the amount of remuneration exceeds 5 million rubles.
Tax non-resident of the Russian Federation.
After the employee or contractor loses the status of a tax resident, personal income tax is transferred to the budget in an increased amount — 30%. At the same time, the amount of income does not matter.
That is, until the employee (contractor) loses the status of a tax resident, the customer (employer) withholds personal income tax from his income at the rate of 13% (15%).