I think that you can continue cooperation with a foreign company on the same terms, paying the established taxes, taking into account the following.

In accordance with Art. 209 of Chapter 23 “Personal Income Tax” of the Tax Code of the Russian Federation for individuals who are tax residents of the Russian Federation, the object of taxation on personal income tax is income received by taxpayers from sources in the Russian Federation and (or) from sources outside the Russian Federation. The amounts of remuneration for the consulting services provided by a foreign company transferred on the basis of an agreement to a citizen’s foreign currency account are subject to personal income tax at a rate of 13%. Moreover, in accordance with paragraph 5 of Art. 210 of the Tax Code of the Russian Federation, taxpayer income expressed in foreign currency is recalculated into rubles at the Bank of Russia exchange rate established on the date of actual receipt of income. In this case, the date of actual receipt of income in accordance with clause 1 of Art. 223 of the Tax Code of the Russian Federation is considered the day of transfer of funds to the taxpayer’s bank account.
In accordance with Art. 228 of the Tax Code of the Russian Federation, individuals - tax residents of the Russian Federation, receiving income from sources located outside the Russian Federation, are obliged to independently calculate the amount of tax payable to the budget in the manner established by Art. 225 of the Tax Code of the Russian Federation, based on the amounts of such income.
The total amount of tax payable is calculated by the taxpayer taking into account the amounts of tax withheld by tax agents when paying income to the taxpayer.

In addition, taxpayers are required to submit a corresponding tax return to the tax authority at their place of registration (i.e., place of residence). Considering that these citizens retain the right to receive such income throughout the entire reporting tax period, they submit a tax return within the time limits provided for in paragraph 1 of Art. 229 of the Tax Code of the Russian Federation, i.e. no later than April 30 of the year following the expired tax period.
In case of termination of payments before the end of the tax period, which is recognized as a calendar year, in accordance with clause 3 of Art. 229 of the Tax Code of the Russian Federation, such taxpayers are required to submit a tax return on the actual income received in the current tax period within five days from the date of termination of payments. At the same time, according to clause 3 of Art. 54 of the Tax Code of the Russian Federation, taxpayers calculate the tax base on the basis of data received from organizations on paid income and withheld tax amounts, as well as data from their own accounting of income received, carried out in any form.
In your case, the supporting documents on the basis of which the taxpayer must keep his own records of income received and calculate the amounts of personal income tax payable, and declare the income received by him, are: an agreement for the provision of services with translation into Russian, bank statements about transactions made transactions on the client's account, in particular transactions for the posting of funds received from a foreign company to the client's account, as well as a certificate with a translation into Russian from the foreign company - the source that paid the income, about such income.
In addition, for taxpayers receiving income from performing work (rendering services) under civil contracts, Art. 221 of the Tax Code of the Russian Federation provides for the right to receive professional tax deductions in the amount of expenses actually incurred and documented by them directly related to the performance of these works (rendering services). This could be, for example, expenses for the Internet and telephone communications.

Thus, it will be enough for you to submit a declaration and pay tax at a rate of 13%. As an option, you can also claim a professional tax deduction in the amount of expenses you incurred and documented.

Many United States citizens and permanent residents earn income abroad. Recently, the Internal Revenue Service (IRS) has expressed interest in taxpayers with bank accounts in Liechtenstein. However, the interest shown by the Tax Office goes beyond bank accounts in Liechtenstein and extends to bank accounts throughout the world. Therefore, the IRS reminds you to report your worldwide income on your U.S. tax return.

If you are a US citizen or permanent resident, you must report income from all US and non-US sources. This rule applies whether you receive a Form W-2, Wage and Tax Statement, or Form 1099 Information Return. in the event that you receive foreign analogues of these forms. Refer to Publication 525, Taxable and Nontaxable Income, on the IRS website for more information.

Additionally, if you are a U.S. citizen or permanent resident, the same rules for filing income tax returns, real estate tax returns, gift tax returns, and estimated tax rules apply to you regardless of whether you reside in whether you are in the US or abroad.

Concealing income earned abroad

Hiding income earned abroad can be a crime.

The IRS and its international partners target those who hide foreign earned income or assets to evade taxes.

Inspectors specially trained by the Tax Administration are actively working on planning the collection of international taxes, including abuses involving the use of organizations and structures created abroad. The purpose of this activity is to ensure that U.S. citizens and permanent residents accurately report their income and pay taxes correctly.

Accounts in foreign financial institutions

On your US income tax return, you must not only report your worldwide income, but also report whether you have any foreign bank or investment accounts. Under the Bank Secrecy Act, you are required to submit a “Status Report.” Foreign Bank and Other Financial Accounts, If Available (FBAR) (FinCEN Form 114, formerly Form TD F 90-22.1).

• if you have ownership, signature or other authority over one or more foreign accounts and
• the total amount in all foreign accounts exceeded $10 thousand at any time in the calendar year.

For additional information on reporting accounts with foreign financial institutions, see the related press release and the publication “Do You Have a Foreign Financial Account?” .

Consequences of tax evasion on income received abroad

If the IRS discovers that you have hidden income or undisclosed accounts at foreign financial institutions, there are serious consequences, including not only additional taxes, but also significant penalties, fines, interest, and even imprisonment.

Notifying authorities about advertising fraudulent tax evasion schemes for income earned abroad

The IRS encourages you to notify the IRS if you are advertising fraudulent schemes to evade taxes on foreign earned income. Individuals who notify the IRS of suspected fraud may be eligible for an award when they file Form 211, Application for Award for Original Information. How to proceed is described in Notice 2008-4, Claims Submitted to the IRS Whistleblower Office under Section 7623.

We remind you that tax returns will begin to be accepted this year on January 23. The deadline for submission is April 18.

A tax resident of the Russian Federation pays personal income tax in the amount of 13% on income received from Russian and foreign sources.

Income received abroad is recalculated based on the Central Bank exchange rate on the day the income is paid.

For example, if the payment was made on April 30, 2017, then, accordingly, the amount of income will be 20,000 * 62.04 = 1,240,800 rubles

Personal income tax – 13% – 161,304 rubles

Income received in the Russian Federation is also subject to personal income tax at a rate of 13% for a resident of the Russian Federation.

If the income is 250,000 rubles, then personal income tax is 13% = 32,500 rubles

The total tax amount will be 193,804 rubles

Explanation:

The organization, as a tax agent, must withhold and transfer to the budget the amount of personal income tax on most of the income that it pays to its employees (clauses 1, 4, article 226 of the Tax Code of the Russian Federation).

The personal income tax rate for residents is 13%.

Tax residents of the Russian Federation in a calendar year are persons who are in Russia during that year at least 183 days.

These persons are subject to personal income tax on all income they receive, regardless of their source. In this case, income comes from sources in the Russian Federation (renting or selling an apartment located in the Russian Federation, performing labor duties in a Russian organization, etc.) and from sources outside the Russian Federation (selling a house located in a foreign country, performing labor duties abroad etc.) (Article 208 of the Tax Code of the Russian Federation).

If a citizen receives a salary for working in a Russian organization, then this organization is a tax agent in relation to him and, accordingly, it is charged with the responsibility for calculating and paying personal income tax (Article 226 of the Tax Code of the Russian Federation).

If a citizen works abroad, but is at the same time a tax resident of the Russian Federation, then from the income he receives from this work he is obliged to independently calculate and pay personal income tax, as well as submit a personal income tax return (form 3-NDFL April 30 next year (Article , Tax Code of the Russian Federation).

The specified income is subject to personal income tax at the rate 13% (Article 224 of the Tax Code of the Russian Federation).

Taxpayer risks:

1. Risk of losing resident status

There is an obligation for the employer to confirm resident status. As the Ministry of Finance of Russia indicates, responsibility for the correct determination of the tax status of an individual - recipient of income rests with the organization - tax agent (Letters dated 02/22/2017 N 03-04-05/10518 and dated 03/16/2012 N 03-04-06/6- 64).

The Russian Ministry of Finance indicates that the organization independently establishes the tax status of individuals who receive income based on the characteristics of each specific situation (Letters dated 02/22/2017 N 03-04-05/10518, dated 03/16/2012 N 03-04-06/6-64 ).

In case of loss of resident status, tax is payable at a rate of 30%, so it is necessary to control the risks of losing resident status.

1. Risk of double taxation of income received in the UAE

If an international agreement on the avoidance of double taxation concluded between the Russian Federation and a foreign state establishes other rules for taxation of income received, then the rules of international agreements apply (Article 7 of the Tax Code of the Russian Federation).

However, there is no double taxation agreement with the UAE. Therefore, there is a risk that the employer in the UAE will assess the tax as a tax agent, and the taxpayer will pay the tax themselves

1. It is necessary to track the resident status of the employee

The time of stay in the Russian Federation can be confirmed depending on the situation (Letters of the Ministry of Finance of Russia dated 01/13/2015 N 03-04-05/69536, dated 06/28/2012 N 03-04-06/6-183, dated 04/26/2012 N 03-04 -05/6-557, dated 03/16/2012 N 03-04-06/6-64, dated 05/16/2011 N 03-04-06/6-110, Federal Tax Service of Russia dated 07/22/2011 N ED-4-3/ 11900@):

— certificates from the place of work (including from the previous place of work);

— certificate from the educational institution;

— time sheet;

— certificate of registration at the place of temporary residence;

— certificate received at the place of residence in the Russian Federation;

— receipts for hotel accommodation;

— other documents confirming the period of stay of an individual in the Russian Federation. We believe that these could be travel tickets, business trip orders, waybills, etc.

1. It is advisable to remind the employee of the need to file a 3-NDFL declaration in relation to income from foreign sources.

It is necessary to submit a personal income tax return (form 3-NDFL) to the tax authority at your place of residence no later than April 30 next year (Article , Tax Code of the Russian Federation). The specified income is subject to personal income tax at the rate 13% (Article 224 of the Tax Code of the Russian Federation)

https://www.nalog.ru/rn77/fl/pay_taxes/income/rezident_all/

An individual entered into an agreement with a foreign legal entity (not a resident of the Russian Federation) for the provision of consulting services. I ask you to clarify the procedure for taxing the income of an individual under this service agreement: A) as an individual, B) as an individual entrepreneur.

A) An individual in this case receives income from sources outside the Russian Federation, which is subject to personal income tax on the basis of subsection. 6 clause 3 art. 208 Tax Code of the Russian Federation. A citizen must declare and pay personal income tax independently (clause 1 of Article 228 of the Tax Code of the Russian Federation). Date of occurrence of income - the date of receipt of money in a foreign currency account at the exchange rate of the Central Bank of the Russian Federation on the day of receipt of foreign currency funds (subclause 1, clause 1, article 223 of the Tax Code of the Russian Federation). How to pay personal income tax yourself is discussed in the materials below.

B) If a citizen works as an entrepreneur, the taxation procedure will depend on the taxation system he applies. For example, if an individual entrepreneur is on the general taxation system, then you will have to pay personal income tax (13%) on the amount of funds received for the provision of services. There is no need to pay VAT, since the place of sale of consulting services is not the territory of the Russian Federation (subclause 4, clause 1.1, article 148 of the Tax Code of the Russian Federation, clause 1, article 146 of the Tax Code of the Russian Federation). But the individual entrepreneur will also be able to take into account the costs associated with obtaining this income.

The rationale for this position is given below in the materials of the Glavbukh System

What income is subject to personal income tax?

Residents must pay personal income tax on income:

• received from sources in Russia (organizations and people, including entrepreneurs located in Russia);
• received from sources outside of Russia (organizations and people, including entrepreneurs located outside of Russia).

Non-residents must pay personal income tax only on income received from sources in Russia (and the Tax Code of the Russian Federation). The list of income received from sources in Russia is given in table (). Please note that you do not need to pay tax on some types of income. A tax privilege can also be granted by an international agreement concluded between Russia and a foreign state of which the recipient of the income is a resident (clause 2 of Article 232 of the Tax Code of the Russian Federation).

When a person must pay personal income tax on his own

Depending on the situation and (or) the type of income received by a person, personal income tax must be calculated and transferred to the budget:

• the person who received the income;

You need to pay personal income tax yourself on income received:

• from entrepreneurial activities and private practice by entrepreneurs, private notaries, lawyers who have established law offices, etc.;
• from people and organizations that are not tax agents, under labor, civil law, employment and rental agreements;*
• from the sale of your property, including securities and currency on the foreign exchange market, which are sold without intermediaries (except for non-taxable income from the sale of a car), and property rights (for example, copyright or inheritance);
• from sources outside of Russia (for all residents, except military personnel serving abroad, and civil servants sent to work abroad);*
• from (if he did not withhold tax);
• in the form of winnings and prizes paid by the organizers of lotteries, sweepstakes and other risk-based games (casinos, slot machines, etc.);
• in the form of remuneration paid to the heir (successor) of copyright (related) rights;
• in the form of gifts from people who are neither family members nor close relatives, if the gift is real estate, vehicles, stocks, shares or shares.

In other cases, you are obliged to withhold personal income tax from the recipient of the income (clause and article 226 of the Tax Code of the Russian Federation).

At the same time, personal income tax cannot always be withheld and transferred to the budget (for example, when income is given in kind or a material benefit is received). In such a situation, he is obliged to notify not only the tax inspectorate, but also the recipient of the income himself (clause 5 of Article 226 of the Tax Code of the Russian Federation) about unpaid personal income tax. And in this case, the citizen will have to pay off the budget. This procedure follows from the letter of the Ministry of Finance of Russia dated November 17, 2010 No. 03-04-08/8-258 (brought to the tax inspectorates by letter of the Federal Tax Service of Russia dated December 2, 2010 No. ШС-37-3/16768 for use in work) .

How to pay personal income tax yourself

Income subject to personal income tax

The composition of income from business activities, which are subject to personal income tax, is presented in paragraph 14 of the Procedure for accounting for income and expenses for entrepreneurs. These include all proceeds from the sale of goods, performance of work and provision of services, as well as the value of property received by the entrepreneur free of charge. It should be taken into account that a number of incomes are not subject to personal income tax.*

Forms of income generation

An entrepreneur can receive income:

• in the form of material benefits, determined in accordance with the Tax Code of the Russian Federation.

Income that is expressed in foreign currency should be taken into account in conjunction with income, the value of which is expressed in rubles. In this case, foreign currency income must be recalculated into rubles at the official exchange rate of the Bank of Russia in effect on the date of recognition of income ().

The date of receipt of income in cash is the day of receipt of funds to the current account or cash register of the entrepreneur (clause 1 of Article 223 of the Tax Code of the Russian Federation).

Sergey Razgulin,

Actual State Councilor of the Russian Federation, 3rd class

3. Directory:List of income that relates to income received from sources outside of Russia for the purposes of calculating personal income tax

"Salary", 2011, N 11

Separate divisions of Russian enterprises pay employees wages, bonuses, sick leave, etc. In the article we will look at how the calculation, withholding and payment of personal income tax on these payments are organized.

Separate divisions of a Russian organization abroad are not registered with the tax authorities in the Russian Federation (clause 1 of Article 83 of the Tax Code of the Russian Federation). In cases where the employer must perform the functions of a tax agent, personal income tax payments from the wages of employees working abroad can only be carried out by the parent organization at its location in Russia.

Factors determining the procedure for taxation of personal income tax

The procedure for taxation of income received by an employee of a foreign branch of a Russian organization depends on:

• whether or not the employee is a tax resident of the Russian Federation;
• where the sources of his income are located: in the Russian Federation or abroad<1>;
• whether the Russian Federation has concluded an international agreement on the avoidance of double taxation with the state in which the employee performs his work duties.

Residents and non-residents

Tax residents of the Russian Federation are individuals who are in the Russian Federation for at least 183 calendar days over the next 12 consecutive months (clause 2 of Article 207 of the Tax Code of the Russian Federation).

The tax status of an employee is determined for each date of receipt of income based on the actual time the employee is in the Russian Federation.

When determining the tax status of an individual, any continuous 12 month period determined as of the relevant date of receipt of income, including one that began in one tax period (calendar year) and continues in another tax period (calendar year). This is stated in Letters of the Ministry of Finance of Russia dated March 26, 2010 N 03-04-06/51 and dated October 29, 2009 N 03-04-05-01/779.

If an employee stays on the territory of the Russian Federation for more than 183 days during a calendar year (from January 1 to December 31), then he is recognized as a tax resident of the Russian Federation in this tax period. If an employee works in a separate unit for 183 days or more during the tax period (from January 1 to December 31), then he is not a tax resident of the Russian Federation in that calendar year.

The period of stay on the territory of the Russian Federation is not considered interrupted by short-term (up to six months) trips abroad for treatment or training (clause 2 of Article 207 of the Tax Code of the Russian Federation).

Note. Arrival day, departure day

When determining tax status, the actual days of an individual’s presence in the Russian Federation are important. That is, all days when an individual was on the territory of the Russian Federation are taken into account, including days of arrival and days of departure. This is stated in the Letter of the Ministry of Finance of Russia dated March 21, 2011 N 03-04-05/6-157.

How to determine where the source of income is located

The source of income for the purpose of calculating personal income tax is determined depending on the type of income and the place of performance of work duties.

Salary. The lion's share of income received by an employee of a foreign branch is wages. The main criterion for determining the location of their source is the place where work duties are performed.

Remuneration for performing labor duties outside the Russian Federation refers to income received from sources outside the Russian Federation (clause 6, clause 3, article 208 of the Tax Code of the Russian Federation). In this case, the place of registration (location) of the employer or the place of payment of income (for example, to a personal account opened in a bank in Russia) does not matter.

Benefits. In addition to wages, employees of separate divisions, like all insured persons, can receive temporary disability benefits provided for by Russian legislation. For the purposes of calculating personal income tax, this payment refers to income whose source is located on the territory of the Russian Federation (clause 7, clause 1, article 208 of the Tax Code of the Russian Federation).

Vacation pay. Vacation pay accrued while an employee performs work duties abroad refers to income received from sources outside the Russian Federation (Letter of the Ministry of Finance of Russia dated April 18, 2007 N 03-04-06-01/123).

The procedure for calculating and paying personal income tax

First, let’s decide what we mean when talking about the procedure for calculating and paying personal income tax. For our purposes, the procedure for calculating and paying personal income tax is determined by a combination of answers to the following questions:

• Is it necessary to pay personal income tax on the income received?
• what tax rate to apply, whether to provide tax deductions;
• who makes calculations for the calculation and payment of personal income tax to the budget of the Russian Federation?

Is it necessary to pay personal income tax on the income received?

According to Art. 209 of the Tax Code of the Russian Federation, the object of taxation is income received by taxpayers:

1. from sources in the Russian Federation and (or) from sources outside the Russian Federation - for individuals - tax residents of Russia;
2. from sources in the Russian Federation - for individuals who are not tax residents of the Russian Federation.

Income received by a non-resident of the Russian Federation from sources outside of Russia is not subject to personal income tax, provided that the international agreement on the avoidance of double taxation does not establish other rules. If the provisions of Russian tax legislation do not allow the income received by the taxpayer to be unambiguously attributed to a Russian or foreign source, then the assignment of income to one or another source is carried out by the Ministry of Finance of Russia (clause 4 of Article 208 of the Tax Code of the Russian Federation).

What tax rate to apply, whether to provide tax deductions

Rates. In accordance with paragraph 3 of Art. 224 of the Tax Code of the Russian Federation in relation to most<2>of income received by individuals who are not tax residents of the Russian Federation, the tax rate is set at 30%, and for income of tax residents of the Russian Federation - 13% (clause 1 of Article 224 of the Tax Code of the Russian Federation).

<2>The exception is income received in the form of dividends from equity participation in the activities of Russian organizations, remuneration of highly qualified specialists, remuneration under contracts concluded by foreign citizens with individuals that are not related to the implementation of entrepreneurial activities (clause 3 of Article 224 of the Tax Code of the Russian Federation).

Deductions. For income for which a tax rate of 13% is provided, established by clause 1 of Art. 224 of the Tax Code, the tax base is determined using tax deductions provided for in Art. Art. 218 - 221 of the Tax Code of the Russian Federation (clause 3 of Article 210 of the Tax Code of the Russian Federation). When calculating personal income tax on income taxed at a rate of 30%, tax deductions are not applied.

A non-resident has become a resident: personal income tax recalculation

If an employee changes his status during the tax period, the procedure for taxing his income with personal income tax also changes. There is a need to recalculate personal income tax. The final tax status of an employee is determined at the end of the tax period (calendar year).

After changing the status from non-resident to resident, the taxpayer has the right to receive back the amount of personal income tax overpayment resulting from the application of the 30% tax rate, or to offset it against future personal income tax payments during the given tax period.

Personal income tax refund. Since 2011, the procedure for returning overpayments for personal income tax has been established in Art. 231 Tax Code of the Russian Federation. However, there are different points of view regarding the procedure for returning an overpayment due to a change in the tax status of the taxpayer.

Position of the Federal Tax Service of Russia. Let us note that representatives of the Federal Tax Service expressed a dissenting opinion on this issue. According to tax specialists, along with the tax authority employer can also return tax, but only if the employee acquires tax resident status after July 3 and this status will not change until the end of the tax period (Letter of the Federal Tax Service of Russia dated 06/09/2011 N ED-4-3/9150).

Position of the Russian Ministry of Finance. According to the Russian Ministry of Finance, the refund of overpayments for personal income tax is carried out only by the tax authority and only at the end of the tax period based on the recalculation made by the taxpayer in the tax return. This instruction is stated in clause 1.1 of Art. 231 Tax Code. Moreover, starting from the month in which the employee changed his tax status, the tax agent must recalculate personal income tax (Letter of the Ministry of Finance of Russia dated September 28, 2011 N 03-04-06/6-242).

From residents to non-residents

If an employee has lost his tax resident status, the tax agent who continues to pay him income must take the following actions:

• calculate personal income tax at a rate of 30% in relation to income from sources in the Russian Federation without the use of tax deductions;
• identify the amount of personal income tax subject to additional payment;
• withhold it from the taxpayer’s income, the source of payment of which he is;
• transfer the withheld surcharge to the Russian budget.

If it is not possible to withhold personal income tax, the tax agent is obliged, no later than one month from the end of the tax period, to send to the tax authority and the taxpayer a certificate in form 2-NDFL (Clause 5 of Article 226 of the Tax Code of the Russian Federation)<3>. Next, the taxpayer will independently make mutual settlements with the tax authority regarding the arrears of personal income tax.

<3>Read more about this procedure in the article “Personal income tax is not withheld. How to correct the error” // Salary, 2011, No. 3. - Note. ed.

The role of the employer in making payments to the budget for the calculation and payment of personal income tax

The Russian organization from which or as a result of relations with which the taxpayer received income is the tax agent in relation to personal income tax on this income. She is obliged to calculate, withhold from the taxpayer and pay personal income tax to the Russian budget. This norm is established by paragraph 1 of Art. 226 Tax Code.

The employer is the tax agent. An employer paying income to an employee must act as a tax agent only if the location of the source of income is recognized as the Russian Federation. The income of employees of a separate division of a Russian organization abroad may include those whose source is located on the territory of the Russian Federation. We have already said above that such income includes temporary disability benefits calculated in accordance with the legislation of the Russian Federation (clause 7, clause 1, article 208 of the Tax Code of the Russian Federation). In relation to this type of income, in accordance with the norms of paragraph 1 of Art. 226 of the Tax Code, the source of payment becomes a tax agent for personal income tax.

In accordance with paragraph 3 of Art. 24 of the Tax Code of the Russian Federation, tax agents are obliged to:

1. correctly and timely calculate, withhold from funds paid to taxpayers, and transfer taxes to the budget;
2. notify in writing the tax authority at the place of your registration about the impossibility of withholding tax and the amount of the taxpayer’s debt;
3. keep records of accrued and paid income to taxpayers, calculated, withheld and transferred to the personal income tax budget;
4. submit to the tax authority at the place of your registration the documents necessary to monitor the correctness of calculation, withholding and transfer of personal income tax;
5. for four years, ensure the safety of documents necessary for the calculation, withholding and transfer of personal income tax.

In addition, they must issue taxpayers certificates in form 2-NDFL (clause 3 of Article 230 of the Tax Code of the Russian Federation).

The employer is not a tax agent. As we found out earlier, with regard to employees of a separate division of a Russian organization abroad, it can be unequivocally stated that the source of their income received in the form of salaries, located outside the territory of the Russian Federation (clause 6, clause 3, article 208 of the Tax Code of the Russian Federation). In relation to this type of income, the employer is not recognized as a tax agent. He cannot be assigned the duties provided for tax agents in Art. Art. 226 and 230 of the Tax Code (Letter of the Ministry of Finance of Russia dated June 20, 2011 N 03-04-05/6-430). That is, the employer is not obliged to calculate, withhold and pay personal income tax on this income, and also does not have to keep personal income tax records (clause 1 of Article 230 of the Tax Code of the Russian Federation), submit to the tax authority and issue certificates to taxpayers in form 2-NDFL (clause clauses 2 and 3 of Article 230 of the Tax Code of the Russian Federation).

An employee who is a tax resident of the Russian Federation received income abroad

When an employee who is recognized as a tax resident of the Russian Federation in a given tax period receives income from sources located outside the Russian Federation, he must independently calculate and pay tax on such income (clause 3, clause 1, article 228 of the Tax Code of the Russian Federation). It is quite possible that in the country where a separate division of a Russian organization is located, its employee will be recognized as a taxpayer in accordance with the national tax legislation of that country.

In this case, the procedure for taxation of income received from sources in a foreign country will be influenced by the presence or absence of an interstate agreement on the avoidance of double taxation (hereinafter referred to as the interstate agreement) between Russia and the country where the separate unit is located.

An interstate agreement has been concluded. The terms of an interstate agreement may provide for one of two options.

Option 1: payment there, offset in Russia. According to the local legislation of the host country, income tax is imposed on earnings from a source located outside the Russian Federation.

To implement the provisions of the interstate agreement, the employee must present to the tax authority of the host country a document confirming his status as a tax resident of the Russian Federation. This document will be taken into account when taxing income received outside Russia in a foreign country.

Note. Who issues confirmation of tax resident status of the Russian Federation

Certificates confirming the status of a tax resident of the Russian Federation in the Russian Federation are issued by the Interregional Inspectorate of the Federal Tax Service for centralized data processing (Information message of the Federal Tax Service of Russia "On the procedure for confirming the status of a tax resident of the Russian Federation").

At the end of the tax period, the employee will receive confirmation of payment of tax in a foreign country. To carry out a personal income tax offset, he is obliged no later than April 30 of the following year to submit to the Russian tax authority at the place of his registration a tax return (clause 3 of article 228 and clause 1 of article 229 of the Tax Code of the Russian Federation) in form 3-NDFL and attach to it confirmation of payment of tax in a foreign country (clause 2 of Article 232 of the Tax Code of the Russian Federation).

Based on the declaration and the documents attached to it, the tax office will conduct a desk audit. The purpose of the audit is to identify the correctness of the reflection in the declaration of the amount of tax paid in a foreign country, subject to offset in Russia. The fact is that the offset is not made on a parity basis: how much is paid, so much is offset, but within the limits of the amount of tax that the employee would have paid according to the rules of the tax legislation of the Russian Federation. For example, in a foreign country the amount of tax (in ruble equivalent) was 1 million rubles, and in Russia on the same income - 100,000 rubles. Only 100,000 rubles will be accepted for credit.

The amount of personal income tax payable to the budget must be paid to the budget no later than July 15 of the year following the expired tax period (clause 4 of Article 228 of the Tax Code of the Russian Federation).

Option 2: tax is paid in the Russian Federation. If, in accordance with local tax legislation, our employee’s income received in the host country is not taxed, the employee must declare and pay tax on it (personal income tax) in the Russian Federation.

In any option, at the end of the tax period, the taxpayer determines in the declaration the total amount of personal income tax to be paid to the budget no later than July 15 of the year following the expired tax period (Clause 4 of Article 228 of the Tax Code of the Russian Federation).

In the absence of an interstate agreement on the avoidance of double taxation, a taxpayer who is a tax resident of the Russian Federation who has paid tax according to the rules of a foreign state will not have the right to offset it in the Russian Federation (clause 1 of Article 232 of the Tax Code of the Russian Federation). He must also file a declaration in Russia and pay personal income tax on income received from sources outside the Russian Federation.

An employee who is not a tax resident of the Russian Federation received income abroad

Income of individuals who are not tax residents of the Russian Federation received outside of Russia is not subject to personal income tax (Article 209 of the Tax Code of the Russian Federation). Workers in this category are not required to declare income received abroad in Russia, provided that by international agreement or decision of the Russian Ministry of Finance the income is not recognized as received from sources in the Russian Federation.

Peculiarities of taxation of income of non-residents of the Russian Federation in foreign countries

The procedure for taxation of income of non-residents of the Russian Federation in a foreign state will be influenced by the presence or absence of an interstate agreement between Russia and the country where the separate unit is located.

The interstate agreement provides for a tax offset against Russian income of a non-resident of the Russian Federation. If there is an interstate agreement, personal income tax paid by a non-resident of the Russian Federation on Russian income can be accepted for offset by the tax authority of a foreign state. In this case, the employee must obtain a certificate of elimination of double taxation in a foreign country and submit it to the Russian tax authority (clause 2 of Article 232 of the Tax Code of the Russian Federation).

To offset the personal income tax paid in Russia against the fulfillment of tax obligations in a foreign country, the tax authority of the Russian Federation issues the taxpayer a certificate about the income he received from a Russian source and the amount of tax paid in Russia. The employee will submit this certificate to the competent authority of the foreign state for tax offset.

According to an interstate agreement, Russian income of a non-resident of the Russian Federation is not taxed in Russia. If an interstate agreement stipulates that Russian income of a non-resident of the Russian Federation is not taxed in Russia, the taxpayer must provide confirmation that:

• he is a tax resident in a foreign country;
• income received from a Russian source is subject to taxation in accordance with local tax laws in a foreign country.

Then, if the confirmation is submitted before receipt of income, calculation and payment of personal income tax, no tax is charged in Russia.

If the tax is paid in Russia, the personal income tax paid in Russia is returned to the taxpayer.

There is no interstate agreement. In this case, the income of a non-resident of the Russian Federation in Russia is taxed in accordance with the provisions of Art. 209 of the Tax Code, and in a foreign country - in accordance with local tax legislation. Without applying a credit for taxes paid on the same amounts of income in two states.

It is convenient to select the procedure for calculating and paying personal income tax, depending on the combination of various factors, using the table. 1, given on p. 40.

Table 1. Procedure for calculating and paying personal income tax on the income of an employee of a foreign branch of a Russian organization

We illustrate the application of the above rules with examples.

Example 1. JSC "Archaeologist" sent L.P. to work at its representative office in Cusco (Peru). Indiansev to study archaeological objects related to the culture of the Incas and their predecessors using GIS technologies.

It is necessary to determine the procedure for personal income tax taxation of his income in 2011 if the following is known:

• the total amount of wages accrued for the period from January 1 to March 14, 2011 amounted to 25,000 rubles;
• for each month of stay in Peru he is paid a salary of 50,000 rubles. per month;
• the employee has the right to a standard tax deduction provided for in paragraphs. 3 p. 1 art. 218 Tax Code of the Russian Federation.

The Russian Federation does not have an interstate agreement with the Republic of Peru.

Solution. To choose the procedure for taxing personal income tax on an employee’s income, you should first find out his tax status for each date of receipt of income. The date of receipt of income in the form of wages is the last day of the month for which it was accrued (clause 2 of Article 223 of the Tax Code of the Russian Federation). It is more convenient to track the tax status of an employee in the table (Table 2 below).

Table 2. Determination of the employee’s tax status during the tax period at the time of payment of income

• received from a Russian source;
• received from a source located outside the Russian Federation.

Personal income tax on income from a Russian source

The employee received income from a source located in the Russian Federation from March 1 to March 14, 2011. During this period, he was a tax resident of the Russian Federation. In relation to this income, the employer acts as a tax agent. When calculating personal income tax, he applied a rate of 13%. The tax amount, taking into account the standard tax deduction, amounted to 3146 rubles. [(RUB 25,000 - RUB 400 x 2 months) x 13%].

For income received from January to March 14, 2011, the employer monitors the employee's tax status (resident - non-resident). When it becomes known (in our example - in September) that the employee has lost the status of a tax resident of the Russian Federation, the tax agent will inform the employee about the overpayment of personal income tax, calculated at a rate of 13%, and will calculate personal income tax at a rate of 30% without applying standard tax deductions (the tax amount will be 7500 rub.) (Clause 1, Article 231 of the Tax Code of the Russian Federation). He may invite the employee to make an offset (Article 78 of the Tax Code of the Russian Federation). Based on the employee’s application, the amount of personal income tax paid at the rate of 13% - 3146 rubles - will be included in the payment of tax at a rate of 30%. From the income payable to the employee, the employer must withhold the difference in the amount of 4,354 rubles. (RUB 7,500 - RUB 3,146). In this case, the total amount of withholding tax should not exceed 50% of the payment amount (clause 4 of Article 226 of the Tax Code of the Russian Federation). The transfer of additional personal income tax payments to the Russian budget will be carried out by the head office of Archaeologist CJSC, located in Moscow.

Personal income tax on income from a foreign source

Income received for carrying out labor activities in Peru during the period from March 15 to December 31, 2011 is considered income from a source located outside the Russian Federation. The employer is not a tax agent in relation to these incomes. The taxpayer himself must make settlements with the Russian budget. From September 2011, since he ceases to be a tax resident of the Russian Federation, income received from a foreign source is not subject to personal income tax.

Based on the results of the tax period

At the end of the tax period, the employee retained the status of a non-resident of the Russian Federation. Tax on income received from sources in the Russian Federation is calculated, withheld and paid by the tax agent in full.

Income received from sources located outside the Russian Federation is not subject to personal income tax in Russia (Article 209 of the Tax Code of the Russian Federation). An employee who is not a tax resident of the Russian Federation should not report on them to the Russian tax authorities (clause 4 of Article 229 of the Tax Code of the Russian Federation). Note that the employee, if under the laws of Peru he has become a tax resident, must make settlements with the Peruvian budget for tax on income received in this state in accordance with local tax legislation. But this is no longer a concern for the Russian employer.

Example 2. Employee of JSC "Archaeologist" L.P. On March 1, 2012, Indians returned to Russia from Peru, where he worked in the representative office from March 15, 2011 to February 29, 2012.

It is necessary to determine the procedure for personal income tax taxation of his income in 2012. It is known that for the period from January 1 to February 29, 2012, he was accrued 100,000 rubles, from March 1 to December 31, 2012 - 400,000 rubles. The employee has the right to a standard tax deduction provided for in paragraphs. 3 p. 1 art. 218 Tax Code of the Russian Federation. Russia does not have an interstate agreement with Peru.

Solution. The procedure for taxing personal income tax primarily depends on the status of the employee, as well as on the location of the source of his income. Let's create a table that takes into account these two factors (Table 3 below).

Table 3. Determination of the status of a tax resident or non-resident of the Russian Federation and the procedure for taxing his income with personal income tax during the tax period

From January to August 2012

From the table 3 we see that from January to August the employee does not have the status of a tax resident of the Russian Federation. His income accrued for work in Peru at the date of receipt is not subject to personal income tax, and income accrued for work from March 1 to August 31 must be taxed at the time of issue at a rate of 30% without providing standard tax deductions.

In September 2012

The employee has acquired the status of a tax resident of the Russian Federation; this status will not change until the end of the year. The employer must recalculate personal income tax starting from earnings for March 2012 at a rate of 13%.

For the period from March to August, income from sources in the Russian Federation amounted to 240,000 rubles. The amount of personal income tax at a rate of 13% is equal to 31,200 rubles. (RUB 240,000 x 13%). In fact, personal income tax is withheld at a rate of 30% - 72,000 rubles. (240,000 x 30%). There was an overpayment of personal income tax, calculated at a rate of 30% (RUB 72,000), and an underpayment of personal income tax, calculated at a rate of 13% (RUB 31,200).

Refund of overpaid personal income tax due to a change in taxpayer status is carried out by the tax authority at the end of the tax period on the basis of a tax return in Form 3-NDFL (clause 1.1 of Article 231 of the Tax Code of the Russian Federation). The tax agent cannot refund overpaid personal income tax calculated at a rate of 30%. However, the amount of overpayment of tax calculated at a rate of 30% will be accepted by him as an offset to payment of personal income tax at a rate of 13%.

At the end of the tax period

The employee will submit a tax return to the tax authority at his place of residence. The tax authority will make final settlements with him regarding personal income tax.

O.V.Negrebetskaya

Scientific editor

magazine "Salary"

O.S. Ovchinnikova

Deputy Chief Editor

magazine "Salary"