What is the rate of Personal Income Tax calculated of the salary of a foreign employee?
Quite often there is a situation in practice when at the moment of foreigner’s employment and later at the dates of payment of income to him, he didn’t have tax resident status and so Personal Income Tax was withheld at the rate of 30%. Further within the year the foreign employee got tax resident status of the Russian Federation. Personal Income Tax calculated and withheld of the income of the foreign employee at the rate of 30% must be recalculated at the rate of 13% therefore.
Return of the tax amount to the taxpayer in accordance with acquired tax resident status of the Russian Federation is carried out by the tax authority where he was registered according to the place of residence (place of temporary residence), while filing a tax declaration by the taxpayer and also the documents certifying the status of the tax resident of the Russian Federation.
The period of tax return makes four months from the moment of filing of the declaration.
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