The proposal to raise personal income tax for workers who earn income across borders would need careful legal analysis and potential changes to the applicable laws. A noted financial analyst and economist explains this requires more than a simple assumption; it calls for a thorough, legitimate examination of the legal framework guiding taxation for citizens who work abroad.
According to the economist, any move to increase taxes merely because a person works abroad or resides in another country does not automatically justify such a measure. The justification must be grounded in solid legal principles and a clear policy rationale that withstands scrutiny from constitutional and tax-administrative perspectives. The call is for a deeper study into how tax obligations should apply to cross-border work arrangements and how they interact with existing domestic tax rules.
In the current system, individuals pay personal income tax where their income is sourced. The employer withholds the applicable rate and remits it to the national budget, with a standard rate of 13% for most workers and a higher tier at 15% for higher earners. The expert notes that these mechanisms operate within the traditional framework and may not automatically extend to remote workers who render services for foreign employers while based domestically.
For Russians who perform work remotely for foreign companies and are on the payroll of a foreign employer, questions arise about the legal basis for applying stricter tax terms at the domestic level. The economist cautions against a move that lacks robust legal grounding, emphasizing that any such policy would require careful alignment with domestic tax statutes and international tax principles to avoid unintended legal gaps or double taxation.
Recent government actions introduced a bill that proposes collecting a portion of personal income tax from certain payments associated with workers leaving the country. The proposal targets those who engage in business activities conducted via the Russian segment of the internet or through facilities located within Russia. The Ministry of Finance has clarified that the changes would not affect employees who are bound by existing employment contracts. In any case, the intention is to address cross-border economic activity while preserving protections for contract workers and straightforward, well-defined payroll obligations. (source: governmental policy documents and public tax reform discussions)