2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
International law widely uses the concept of "tax resident" in its work. The Tax Code of the Russian Federation contains fairly complete explanations of this term. The provisions also set out the rights and obligations for this category. Further in the article we will analyze in more detail what a tax resident of the Russian Federation is.
Terminology
Tax residents of the Russian Federation are individuals or legal entities registered in its territory. This concept is also enshrined in laws governing currency transactions, in a number of international agreements. According to each of the regulations governing the activities of the persons in question, it is indicated that tax residents of the Russian Federation are entities endowed with certain duties and rights. However, in some cases the definition differs significantly from its scope.
Classification
Deduction of established payments to the budget of eachfrom countries is carried out within the framework of internal documents in the field of relevant legislation. Tax residents of the Russian Federation are, first of all, individuals residing in its territory for most of the calendar year (more than 6 months). The legislation uses a separate justification for people whose financial or vital interests are inextricably linked with the territory of the country. There are also a number of other criteria (exceptions) that do not contradict the regulations of the state, under which a citizen can obtain the status of a tax resident of the Russian Federation. Conditions for legal entities are determined separately. The taxation of small businesses in determining the category takes into account the place of registration or origin of the business, the location of the main management office and other criteria. A person (natural or legal) is obliged to make payments to the budget from all his income coming from both internal and external sources. The rate and procedure for payment are determined by the legislative acts of the state. Non-residents pay tax on income received from sources located in the territory of the country.
International law
As a result of the divergence in different countries of the main criteria according to which a resident or non-resident is determined, a controversial situation is quite often observed. At the same time, an individual or legal entity is simultaneously recognized as obligated to make payments to the budget of different countries. A person recognized as a resident in several states,it is necessary, within the framework of the laws of these countries, to resolve disputes that arise in the process of simultaneous double (triple, and so on) taxation on their income. The rates and conditions are regulated in accordance with the laws of each country. The definition of the term "resident" used in tax legislation does not always coincide in meaning with the concepts used in other types of law (commercial, civil, currency).
Tax residents in the Russian Federation
This concept currently provides for permanent residence in the territory of the state for at least 183 days within 12 months following one after another. At the same time, the period of stay of an individual in the country is not interrupted for the period of his departure outside the country for training or treatment (up to 6 months). Assigning the status of a resident (non-resident) to each taxpayer establishes his obligations to pay tax to the budget from his income, affects the types and methods of deductions.
Types of bets
Payments of 13% per annum in accordance with article 224 of the domestic Tax Code apply to all residents (individuals) - citizens of the country - when calculating payments from total income. For those who do not belong to this category, the deduction is 30%. There are a number of exceptions to the general rules. For example, when concluding an employment contract for a period of more than 183 days, a rate of 13% may be applied to a citizen of a foreign state. However, in cases where the employeeleaves before the expiration of the specified period, and payments for the elapsed time amounted to the same percentage, the calculation is recognized as incorrect. In this case, the employer is fined.
Income payments for foreign migrants
According to the Tax Code of the Russian Federation, any income received by residents or non-residents on the territory of the country is mandatory taxed at the appropriate rate. Settlers who have arrived on the territory of the state from another country, in accordance with part 23 of Article 207 of the Code, automatically become non-residents. They belong to this category for up to 6 months inclusive from the date of entry. A similar status is also assigned to citizens of the Russian Federation whose place of permanent residence is located outside the borders of the state. In this case, they are considered foreigners. Persons who, due to special circumstances, have acquired the citizenship of the Russian Federation within 3 months, also remain non-residents within the framework of the law. They fall into this category until they exceed their stay in the country by more than 183 days. In this case, for all of the above groups, regardless of whether they have Russian citizenship, a tax rate of 30% of their total income will apply.
Individualized rates on profits of foreign citizens
The following types of income of non-residents are not subject to 30% tax:
- Dividends received from participation on the right of a share in the work of a Russian organization. They are calculated at a rate of 15%.
- Work activity,taxable 13%.
- A highly skilled job. Within the framework of the Federal Law of July 25, 2002, which regulates the legal status of foreign citizens staying on the territory of the Russian Federation, such activities are taxed at a special rate of 13%.
For all those who moved to the country and have income here, the payment of 30% of the profit is charged. This condition is valid until they achieve the status of a resident of the Russian Federation. According to the regulations, on the 184th day of a citizen's stay on the territory of the state, the relevant authority must make a mandatory recalculation of the rate for the current period.
Refund of overpayment on deduction to personal income
When obtaining the status of a resident of the Russian Federation, the calculated tax for the current period is recalculated. In this case, the money overpaid to the country's budget is returned. Until December 31, 2010, this obligation lay with the employer. Since January 01, 2011, this function has been transferred to the tax authority, in which the person is registered at the place of his actual residence. Recalculation and refund of funds occurs on the basis of a declaration submitted by a citizen. In addition, a tax resident certificate must be provided. It confirms the transition of a person to this category.
Paper required for recalculation
The main document that tax residents of the Russian Federation must submit is a declaration drawn up in the form 3-NDFL. To carry out the recalculation, the person provides information,confirming its transition to another category. A set of documents is submitted to the tax office at the place of registration.
Confirmation of Russian tax resident status
Employer in practice has no way to check which category his employee belongs to. Without special opportunities, it is practically impossible to establish the period of residence of a person in the territory of the state over the past 12 months. The employer may ask the employee to write a statement that he can be considered a tax resident of the Russian Federation. At the same time, the document indicates that he lived, in accordance with domestic law, for six months in the country out of the last 12. In this case, the employer disclaims all responsibility to the tax authorities for the possible provision of poor-quality information, on the basis of which the amount of deduction from income is calculated. Thus, the employee confirms and is responsible for the accuracy of the information provided. In case of deception, a citizen may be subject to serious pen alties.
Currently, the tax authorities, customs and migration control services are developing a common unified database for recording all persons crossing the border of the Russian Federation and further tracking their residence in the state. However, it is difficult for an ordinary employer to gain access to such data, so he is forced to rely only on the statements of the employee.
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