Filing a Tax Return

Information on the tax year and filing a tax return in Russia...

Tax returns should be submitted on a form called the Tax Declaration (Nalogovaya Declaratsia / ????????? ??????????). This can be filed online or at the local tax office. The penalty for failure to file a tax return by the due date can be five percent of the amount of tax for each month it is late.

In order to allocate the tax money correctly, the payment of all income tax should be made personally and from a Russian bank account. It is possible, and advisable, to hire the services of a tax expert who can help with the procedure and ensure everything is filed and paid properly.

  • For a locator of tax offices for foreign nationals with English-speaking staff in Moscow and St Petersburg: Click here
  • For a website with information and the forms connected to Personal Income Tax: Click here (in Russian)
  • For another information portal with information about Personal Income Tax and how to pay it: Click here (in Russian)

Tax Year

The tax year runs from January 1 to December 31. The due date for a tax return (Forma 3-NDFL / ????? 3-????) is on 30 April following the expired tax period. The final tax payment date for that period is 15 July.

Tax Deductions

Tax deductions are applicable only to the 13 percent tax rate (the rate for residents of Russia). All other tax rates do not have provision for deduction. According to the Tax Code (Art. 218 It. 4) the following may be deducted from the taxable income:

  • R.1,400 per month for the first and second child
  • R.3,000 per month for the third and each additional child or for a disabled child

This is deducted from the income of a parent with children under 18 or of students aged 18- 24 until the annual income is greater than R.280,000. This deduction can be applied for as a double amount to only one parent if the other parent agrees (in writing) to forego the tax deduction, or it can be applied for by a single parent.

Leaving Russia

If leaving Russia permanently during the tax year, a departure tax return should be filed no later than one month prior to the departure date and PIT obligations should be paid within 15 days of filing the tax return.? For those working for an employer, at the end of the employment the employer can issue a confirmation of income and tax paid (Spravka 2 NDFL / ??????? 2 ????).

Taxation on Gifts and Inheritance

All personal income received as a gift or inheritance is subject to personal income tax. There are no specific tax rules for wealth, inheritance or gifts.

Capital Gains

Capital gains are subject to general income tax.

Further Information

  • For more information on Personal Income Tax from KPMG, including a breakdown of simple tax calculations with an illustration of deductions from a salary: Click here

 

Disclaimer

Any statements concerning taxation are based upon our understanding of current taxation laws and practices in Russia which are subject to change. While every effort has been made to offer information that is current, correct and clearly expressed the publisher is not responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. Readers are encouraged to seek professional advice concerning specific matters before making any decision.