Taxation of Non-Residents in Russia: Filing Obligations

Published on October 4, 2025 and written by Cyril Jarnias

Navigating the maze of non-resident taxation in Russia requires a thorough understanding of various reporting obligations, which can become a significant challenge for expatriates and foreign companies. With its unique tax framework, Russia requires non-residents to familiarize themselves with complex and constantly evolving legislation.

Beyond tax rates, it’s crucial to understand the nuances of annual tax returns and special procedures that differ significantly from those applied to residents. This article explores these lesser-known but essential aspects, providing readers with the keys to avoid pitfalls and ensure compliance with peace of mind.

Expatriate Taxation: Understanding Obligations in Russia

Tax Residency Criteria in Russia

– An individual is considered a tax resident if they stay in Russia for more than 183 days during any consecutive 12-month period.

– Non-residents are those who do not meet this criterion.

Tax Status	Definition	Main Consequence
Tax Resident	> 183 days in Russia over 12 consecutive months	Taxed on worldwide income
Non-Resident	≤ 183 days in Russia	Taxed only on Russian-source income

Tax Obligations by Residency

– Tax Residents: taxed on all income, whether from Russian or foreign sources.

– Non-Residents: taxed only on Russian-source income, typically at a higher rate.

Types of Taxable Income

– Salaries earned in Russia or abroad

– Investment income (dividends, interest)

– Real estate income (rental income, capital gains from property sales)

– Other income: gambling winnings, copyright royalties, independent activities

Income Type	Tax Resident (Taxed)	Non-Resident (Taxed)
Russian Salary	Yes	Yes
Foreign Salary	Yes	No
Russian Dividends	Yes	Yes
Foreign Dividends	Yes	No
Russian Real Estate Income	Yes	Yes
Foreign Real Estate Income	Yes	No

Applicable Tax Rates

– Tax Resident:

• Standard rate of 13% on most income
• Certain income (e.g., dividends) may be subject to specific rates

– Non-Resident:

• Rate of 30% on Russian-source income

– For “patent” holders (work permits for certain nationals), monthly payment of an immigration tax

Deductions and Tax Credits

– Residents may benefit from certain tax deductions (medical expenses, mortgage interest, donations, etc.).

– Non-residents generally cannot access these deductions.

– Tax credits are limited and subject to conditions.

Tax Return: Deadlines and Process

– The tax year corresponds to the calendar year.

– Return must generally be filed by April 30 of the year following income receipt.

– Tax payment due by July 15.

– Filing is done with the Federal Tax Service, online or in person.

– A Tax Identification Number (INN) is mandatory for any tax return.

International Tax Treaties

– Russia has signed tax treaties with many countries, including France, to avoid double taxation.

– These treaties determine which country has the right to tax certain income and provide credit or exemption mechanisms.

– Expatriates should verify the applicable treaty between Russia and their home country to optimize their tax situation.

Key Takeaways

Expatriates in Russia must determine their tax status, as it determines the scope of their tax obligations and applicable rates. Reporting worldwide or only Russian income depends on tax residency. International treaties can reduce tax burden in case of double taxation.

Non-Residents and Taxation in Russia: Rules and Specifics

Non-Resident Tax Status Criteria in Russia:

• Any individual staying in Russia for less than 183 days during any consecutive 12-month period is considered a non-resident.
• The 183-day threshold includes all days of presence, even non-consecutive, during the calendar year.
• Beyond this threshold, the individual becomes a tax resident and is taxed differently.

Tax Rules Applicable to Non-Residents:

Category	Tax Non-Resident in Russia
Taxable Income	Russian-source income only
Tax Rate	30% (individual income)
Dividend Taxation	15%
Bank Interest Taxation	30%
Real Estate Capital Gains	30%
Deductions/Exemptions	No deductions or allowances granted to non-residents

• Non-residents are taxed only on their Russian-source income (salaries, rental income, capital gains, dividends, etc.).
• No deductions or exemptions generally apply to non-residents.
• Foreign-source income is not taxed in Russia for non-residents.

Tax Filing Obligations for Non-Residents:

• Non-residents must complete a tax return (form 3-NDFL) by April 30 of the year following income receipt.
• Tax payment must be made by July 15 of the same year.
• Tax may be withheld at source by the Russian employer or payer, but some income requires direct filing and payment by the taxpayer.
• Supporting documents (contracts, bank statements, etc.) must be kept in case of tax audit.

Double Taxation Treaties:

• Russia has signed numerous bilateral tax treaties, notably with France, Belgium, Switzerland, Canada, and other countries.
• These treaties prevent double taxation and provide tax credit or exemption mechanisms.
• In case of residency conflict, treaties examine successively:
  • Permanent home
  • Center of vital interests
  • Habitual abode
  • Nationality

Risks and Penalties for Non-Compliance:

• In case of non-filing or late payment, financial penalties apply (fines proportional to amount due, late payment interest).
• Tax audits may result in reassessments with penalties and interest.
• A non-resident may be denied entry to Russian territory in case of fraud or significant tax debt.
• Failure to regularize may lead to criminal prosecution in case of proven tax fraud.

Summary of Obligations and Risks for Non-Residents:

• Mandatory declaration for all Russian-source income.
• Tax payment at fixed rate of 30%.
• No deductions or allowances.
• Application of international treaties in case of dual residence.
• Financial and criminal penalties for non-compliance.

Warning: Compliance with tax obligations in Russia is strictly monitored, including for non-residents. Failure to file or pay exposes individuals to significant penalties.

Expatriate Tax Filing: Avoiding Double Taxation

Double taxation occurs when an expatriate is subject to tax on the same income in two different countries. For expatriates in Russia, this means that generated income may be taxed both in Russia (withholding tax or local income tax) and in the home country, unless specific provisions apply.

Principles of Double Taxation and Impact for Expatriates in Russia:

• When an expatriate works or receives income in Russia, they may be taxed locally, but also in their country of tax residence or origin.
• This situation is common for non-residents, as Russia applies withholding tax on Russian-source income, while the home country taxes this same income according to its own rules.
• The recent suspension of certain tax treaties between Russia and so-called “unfriendly” countries (including France, Germany, Italy, etc.) has increased the risk of double taxation for expatriates from these countries.

Bilateral Double Taxation Agreements Signed by Russia:

Country	Treaty Status	Main Benefits
France	Suspended	Double taxation protection currently inoperative
India	In Force	Taxation limited to differential between tax rates
Germany	Suspended	No tax credit for taxes paid in Russia
China	In Force	Standard tax credit mechanisms

• Treaties aim to prevent the same income from being taxed twice, by establishing rules for sharing tax jurisdiction and tax credit or exemption mechanisms.
• In case of suspension, the possibility to offset tax paid in Russia in the home country may disappear.

Procedures to Benefit from Treaties:

• Determine tax residency (residency certificate issued by tax administration of residence country).
• Complete specific forms for non-double taxation or tax credit applications.
• Provide:
  • Proof of income received in Russia (pay stubs, employer certificates, bank statements)
  • Tax residency certificate
  • Proof of tax already paid in Russia (withholding tax certificates)
• Submit application to tax administration of home country, sometimes also to Russian tax administration.

Practical Examples of Tax Implications Without Treaty:

Situation	Tax Consequence
A French national receives salary in Russia	Withholding tax in Russia + taxation in France without tax credit
An Indian national receives dividends in Russia	Withholding tax in Russia, tax credit in India for the difference
A German national sells real estate in Russia	Taxation in Russia + risk of taxation in Germany

Practical Tips for Expatriates:

• Verify annually the status of the double taxation treaty between Russia and home country.
• Collect and keep all proof of income and taxes paid.
• Register with consular registry of home country to prove residence abroad.
• Seek assistance from a tax expert specialized in international taxation, especially if treaty is suspended.
• Verify tax residency criteria to avoid subsequent reassessment (particularly in France: home, main activity, center of economic interests).
• Consider legislative updates, such as the extension to 10 years of the French tax administration’s right to reassess in case of tax residency dispute.

Russian Specifics for Non-Residents:

• Tax non-residents in Russia are subject to higher tax rates on their Russian-source income.
• Obligation to declare income received, even if tax was already withheld at source.
• Risk of being considered Russian tax resident if more than 183 days are spent in Russia during any 12-month period, with obligation to declare all worldwide income in Russia.
• Expatriates must ensure compliance with local migration and tax regulations, under penalty of sanctions or bank account freezing.

To limit double taxation risks, it’s essential to follow tax treaty developments, accurately document your tax situation, and seek professional assistance from the time of relocation abroad.