Taxes on foreign employees

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In 2022, the taxation of foreign citizens when they receive income on the territory of the Russian Federation depends on their migration status, and on the length of stay of migrants in Russia.
Personal income tax – personal income tax is withheld from the employee’s salary, when the employer pays insurance premiums (FSS, PFR, FFOMS) at his own expense.
A foreign citizen must pay personal income tax, social insurance fund, PFR and FFOMS from his salary.
Insurance premiums from foreign employees in 2022, calculated from the income of foreign employees, depend on the migration status of a foreigner, as well as on the limits of the maximum contribution base. The maximum value of the base for calculating insurance premiums:
• Contributions for compulsory social insurance in case of temporary disability and in connection with motherhood – 1,032,000 (for 2021 – 966,000 rubles)
• compulsory pension insurance — RUB 1,565,000 (for 2021 — RUB 1,465,000)
Statuses of foreign citizens and their taxes:
Non-residents are foreigners who stay on the territory of the Russian Federation for less than 183 calendar days in one year.
Residents are foreigners who stay on the territory of the Russian Federation for more than 183 calendar days during the year, as well as:
• highly qualified specialists (HQS);
• foreign workers temporarily staying in Russia in a visa-free regime, conducting labor activities on the basis of a patent;
• foreign employees recognized as refugees;
• foreign workers who are representatives of the EAEU member countries.
Non-residents pay 30% personal income tax. Residents personal income tax rate of 13%.
Insurance premiums (FSS, PFR, FFOMS) rates:
• for PFR (on contributions accrued by employers) – 22% until the limit is reached, 10% – on income above the limit;
• for the FSS – 2.9%, and it is valid only for income that has not exceeded the limit;
• for the MHIF – 5.1%, the limit for these payments is not set, and the accrual of contributions at the specified rate occurs regardless of the amount of income received by the employee.
A temporarily staying HQS pays only for the FSS from infrequent cases.
Contact VALEN Group – a consulting firm will always give a detailed and accessible answer to your questions, including those related to taxation.