Position not finalized
The Russian Finance Minister, Anton Siluanov, indicated that the government has not yet settled on how to handle taxation for Russians who work from abroad. He stressed that any decision should avoid harming business activity.
Siluanov noted that the government is weighing the proposals from State Duma deputies, but the course of action remains unsettled. He added that it is possible to levy taxes on services provided from abroad within the Russian Federation. The aim is to ensure taxes are paid without creating disincentives for work abroad, with the government considering MPs’ proposals before finalizing its stance.
There is concern that introducing special taxation procedures could lead to a scenario in which business has no incentive to contribute to the Russian budget.
Siluanov warned that departing Russians might remain unregistered and contribute nothing to tax coffers. He suggested that some individuals could register a company and operate within Russia without personal income tax obligations, noting this as a potential loophole identified by the ministry.
It will be fair
On December 25, Vyacheslav Volodin, the State Duma spokesperson, characterized the taxation of Russians leaving the country as a matter of justice on his Telegram channel. He argued that some advocate preferences for those who have left Russia in hopes of a future return, a stance he viewed as misleading.
Volodin contended that many who left not only work remotely for Russian companies but also enjoy the benefits provided by Russian law. He argued that it would be fair to cancel these preferences for departing citizens and to apply a higher tax rate to them, with legislative changes in progress.
Volodin further indicated that the absentees should not receive special treatment and should face tax reforms aligned with the country’s regulations. On December 26, Andrei Isaev, deputy chairman of the United Russia Duma group, told Interfax that recent Duma initiatives aim to abolish the self-employment regime for those leaving the country.
Isaev explained that Russia maintains preferential tax regimes for the self-employed and individual entrepreneurs, with the self-employed typically paying 4-6%. He noted Volodin’s proposal to cancel these preferences to curb abuse by individuals relocating abroad. The plan envisions that Russians who leave would either sign employment contracts with employers in Russia, increasing their tax burden, or register as individual entrepreneurs, thereby losing access to the special benefits tied to that status.
Ministry of Finance Proposal
On July 26, a proposal from the Ministry of Finance suggested that employees of Russian companies who work remotely from abroad should pay taxes in Russia. The ministry outlined amendments designed to define that wages issued by domestic employers to remote workers located abroad are connected to Russian-sourced income.
The proposal also states that individuals staying outside Russia for more than 183 days per year would lose tax residency in the country. However, the government had not submitted the proposed amendments to the State Duma for consideration at that time.