Tax resident of the Russian Federation: who is it? Who is a tax resident of the Russian Federation.

“The tax resident of the Russian Federation is who” - a request of this type is quite often addressed search engines those who decided to learn more about the Russian taxation system. From our article you will learn how to determine whether a person is tax resident and what gives a citizen this status.

Confirmation of the status of an individual who is recognized as a tax resident

When it comes to specific taxpayers, common man it can be difficult to understand whether these individuals are recognized as tax residents or not. It is not easy to deal with the consequences that this status entails.

To begin with, let's turn to the definition given by the tax legislation. According to paragraph 2 of Art. 207 of the Tax Code, a tax resident of the Russian Federation is an individual who spends a total of Russian territory at least 183 days during a year (calendar).

It should be noted that this number of days is exactly the total time for the year, that is, even if during this period a citizen left Russia for some time, but the amount of days spent on the territory of the Russian Federation corresponds to the above limit, then an individual is recognized tax resident of the Russian Federation. Since a period equal to 1 calendar year is taken to determine the presence or absence of resident status, it should be confirmed annually (this requirement applies to each taxpayer).

IMPORTANT! According to the letter of the Federal Tax Service of the Russian Federation “On the procedure for determining the status of a tax resident of the Russian Federation for a citizen of the Russian Federation exercising labor activity Abroad” of December 11, 2015 No. ОА-3-17/ [email protected], a Russian can be a resident of the country, even if he does not live in Russia for 183 days a year, but at the same time has a permanent place of residence on its territory.

In other words, the mere absence of a citizen in Russia for more than 183 days within 12 months is not an unconditional basis for the loss of his tax resident status if he has a registration in his homeland. It does not matter whether the housing is owned or the Russian uses it for other reasons.

Confirmation of the status of a tax resident of the Russian Federation is required in special cases. It is produced at the request of the taxpayer, drawn up in any form and submitted to the Interregional Inspectorate of the Federal Tax Service for Centralized Data Processing. Such confirmation by Russian citizens is used for presentation in foreign countries in order to avoid double taxation.

Differences in taxation of residents and non-residents

If individuals are tax residents of the Russian Federation, then this gives them the right to a special taxation procedure in the territory of our country. Any person operating within the state, regardless of other factors, must pay taxes established in the territory of the Russian Federation. But the differences in the taxation of residents and non-residents are very significant.

According to Art. 209 of the Tax Code of the Russian Federation, the list of objects of taxation for personal income tax - these are tax residents of the Russian Federation - includes income received both from sources located on the territory of Russia and abroad.

It is important to note that in this area there are a number of additional regulations and international treaties designed to prevent cases of double taxation. However, in any case, a tax resident must account for the income he received outside the Russian Federation and prove the payment of tax to a foreign state in the manner prescribed by the relevant international treaty/agreement.

Non-residents, on the other hand, are required to pay taxes only on income that they received from sources located in the territory. Russian Federation.

The established size of the tax rate for those and others also differs. For example, the general personal income tax rate for tax residents is only 13% of income, and only in some situations it can reach up to 35%, although the number of such cases is very limited. So, in accordance with Art. 224 of the Tax Code, personal income tax. persons in the specified amount is charged when they are received as a result of winning the lottery, drawing prizes, participating in a game or other similar activity. In this case, the tax is charged only on the amount that exceeds 4000 rubles.

For non-residents, the tax rate is set at 30%, regardless of how the income was received.

A few years ago, after graduating from college with a degree in finance and credit, I got a job as an accountant. I didn’t have much experience in this area, therefore, the mistakes and inaccuracies that I made from time to time were quite serious.

There were also plenty of gaps in knowledge, and one of the essential points was ignorance of who residents and non-residents are in tax legislation. I had to carefully understand this issue and today I will tell you already from own experience how to determine the status of a taxpayer, what are the differences between these concepts and how the choice of one of them can affect the preparation of tax reporting and the formation of mandatory payments.

The above terms are well known to many Russians and citizens of other countries, however, they can be used in different areas. These are the areas in question:

• tax area, where the status of a tax resident or non-resident indicates the source of income: in the state or outside the country. Taking into account this characteristic, tax rates are determined in the future;
• currency sphere, where it comes to establishing control over ongoing operations. Residents, in this case, are required to obey certain rules and submit relevant reports within the framework of the current regulations;

It should also be noted that the terminology is also present in other areas, for example, when resolving issues of inheritance of property. In this regard, in order to be able to interpret these concepts in the right way, it is necessary to clearly understand what is the difference between the concepts of "resident of the Russian Federation" and "non-resident".

What is the difference between the concepts?

What thoughts visit a person who first encountered the indicated terms, and is far from the legal, tax or financial spheres? A quite natural question arises: what is it and by what principle should the two concepts be distinguished.

At the first consideration of the concept, one may get the impression that a resident of a country is just a resident with an official civil status, but a non-resident is a foreigner. Of course, there is some truth in this, however, in fact, such an interpretation is not entirely correct. First of all, the main criterion for evaluating the term is the period of a citizen's stay inside the Russian Federation and outside the country.

If we turn to the monetary sphere, then the group of residents includes persons with the status of:

• citizens of the Russian Federation who permanently reside in the country;
• foreigners and persons without civil status who are permanently within state borders.

All other participants in various foreign exchange transactions will be considered non-residents. In the tax sphere, everything happens in a similar way. If a person lives in the country for at least 183 days during the year, then he receives the status of a resident. Business trips of military personnel or civil servants for any period of time outside the state are not the reason for the loss of this status. All other persons are included in the group of non-residents.

How to determine what status a particular person has?

It is worth noting that even one month is enough for the taxpayer status to change. To do this, it is enough to leave the state or return back to the country. However, there are no indications in the current legislation regarding the need to send a notification to the IFTS about a change in status.

An important point is also that citizenship does not affect the determination of this status in any way. In some cases, however, it is provided that even if a citizen left the country for long time, this period is not taken into account. It is about the following points:

• a person left the Russian Federation for a period of not more than six months to undergo a treatment course;
• a citizen was trained for six months in another state;
• the taxpayer was listed as seconded for oil and gas production outside his country.

Some nuances in determining status may arise when a person wishes to emigrate from Russia and sells his own property. In fact, such persons are no longer residents, although formally they continue to be considered as such. They will need to pay personal income tax and here the amount of the fee depends on the status. The fact is that residents pay at a rate of 13%, but non-residents pay at a rate of 30%.

Why do I need to confirm the status and how does it happen?

Confirmation of the official status of the taxpayer is not a prerequisite, however, the provision required documents can become the basis for a significant reduction in the tax burden. The opportunity provided is especially relevant in the case when a citizen is a taxpayer in several countries at once.

The confirmation procedure is quite simple and requires the preparation of documentation confirming the fact that for 183 days a year, a person lived on the territory of the state. All documents are transferred to the IFTS.

Conclusion

Concepts such as "resident" and "non-resident" have a serious impact on determining the level of the tax rate. For the first group of taxpayers, such indicators are significantly reduced, but holders of the second status are required to pay assessed contributions and taxes at higher rates.

All able-bodied population of the country must pay taxes, and their amounts often depend on the status of a particular person. Russian law distinguishes between residents and non-residents. Let's define who a resident is and how it affects his declaration.

What is the status difference

Knowing what status a particular individual has is necessary in order to correctly calculate taxes. Resident and non-resident - what is the difference between them from the point of view of the fiscal service, can be determined on the basis of the following provisions:

• The Tax Code provides for personal income tax rates for residents of 13%, non-residents - 30%. The difference is quite noticeable.
• are entitled to various tax deductions, non-residents, respectively, do not have such rights.
• Non-residents are taxed only on those incomes that are received in the territory of the country, residents must pay tax on income not only from domestic sources, but also from foreign ones.

Therefore, it is important to know if an organization is a resident, for example, if it is your client and you provide a service to it: whether the transaction will be taxed depends on the status of your client.

For individuals

How to determine whether a resident or non-resident is in front of you? A tax resident, according to article 207 of the Tax Code of the Russian Federation, is a person who, from January 1 to December 31, is in the territory of the Russian Federation for more than 183 days. Short-term trips abroad (up to 6 months) are not taken into account and permanent stay in the Russian Federation is not interrupted.

Accordingly, if the number of days spent in Russia is less, then you are no longer a tax resident, and the duration of your stay in the country in previous years is not taken into account. Thus, the status of a resident can be changed at least every year. Since taxes are calculated for a certain period (year), the final determination of the status will also take place at the end of the calendar year.

Citizenship

Since the Tax Code does not say anything about the citizenship of an individual, we conclude that residents include not only Russians, but also foreigners who constantly or most of the time spend in the Russian Federation. Thus, the presence or absence of citizenship (or residence permit) does not affect the determination of resident status, the main thing is the actual location.

How to determine

How can it be established where a citizen is predominantly located, in the country or abroad? Since there is no unambiguous definition algorithm in the law, bank employees and accounting departments use different documents: for example, a passport with border crossing marks, air tickets, certificates of employment or an employment contract.

• citizens of the Russian Federation who are registered within the Russian Federation;
• foreigners who have a residence permit (temporary or permanent);
• foreigners who are registered in the Russian Federation and have an employment contract concluded for at least 183 days.

If it is necessary to determine the status of a legal entity, such data as the place of registration, location of the control center, permanent establishment are taken into account.

When paying salaries

Of direct practical importance is the determination of this status in the calculation of wages for foreign workers. For example, a foreigner signed a contract for a year and started working. In the first half of the year, he must pay taxes as a non-resident, that is, 30%.

When a foreign citizen becomes a resident (after six months of work), the rate should be reduced to 13%, but this does not happen, since the tax amount will be recalculated only by the end of the year. It is then that you need to provide documents confirming the new tax status of the employee to the tax service. And from the new year, this employee will already pay tax at the appropriate rate.

Currency operations

To clarify this issue, consider the difference between a currency resident and a tax resident. The fact is that currency and tax legislation in Russia are two completely different branches of law, they are regulated by different articles of the Constitution. Therefore, they can have their own conceptual apparatus.

From federal law about currency regulation and currency control, you can find out that currency residents are:

• citizens of the Russian Federation, with the exception of those citizens of the Russian Federation who are not less than a year reside abroad on a visa or residence permit;
• foreigners living in the Russian Federation on a residence permit.

And non-residents are all those who do not fit this definition.

So the same person can be a tax resident and a foreign currency non-resident.

Powers

As the name implies, the status of a currency resident affects the authority to conduct currency transactions in the country.

Currency residents can open currency deposits in the country's banks without restrictions, a non-resident cannot do this.

The opposite is also true: a resident cannot open foreign currency accounts in foreign banks without notifying the Russian tax service about it.

That is, if you go abroad and immediately decide to open a foreign currency account there, this will be a violation, which in Russia will result in a large fine for you. But one has only to live abroad for a year, and now you are already a non-resident and can open any kind of accounts abroad.

Non-residents are allowed to make transactions using currency, while residents are prohibited. The exceptions are duty-free shops, payment for international transportation, payment of taxes.

Foreign receipts

So, we know that a person, both a legal entity and an individual, can be a currency and tax non-resident. It depends on its status what tax you pay on the income from the transaction, how the funds should be credited to your current account and in what currency.

Contribution to the authorized capital

Often there is a situation when funds from a company registered abroad must come to the account of a domestic legal entity to pay for its authorized capital. As a rule, we are talking about currency. In other words, a contribution of a non-resident to the authorized capital of a resident is expected. Is such an operation legal and where should the money go?

According to banking rules, authorized capital of a resident company can only be formed in rubles. And currency transactions are prohibited only between residents. Therefore, a non-resident, without any restrictions, can transfer currency to a savings account opened in the name of one of the founders of the company. And after the registration of the enterprise, the funds are converted and transferred to its account.

Provision of services to a non-resident

All subsequent receipts from a non-resident can be formalized by a contract for the provision of services. It could be development software, consulting, accounting, marketing, advertising services. Moreover, the place of their provision also matters. If a non-resident company does not have representative offices in Russia, then all such types of services will be considered rendered outside the Russian Federation. Such income is not taxed. The provision of services to a non-resident on the territory of the Russian Federation is subject to value added tax in the usual manner.

Non-resident in Russia: video

The phrase "tax resident" is quite common today. However, not many understand its meaning. Consider further who is a tax resident.

General concept

The word "resident" is borrowed. Its original meaning in Latin is to lead, to preside. In Russian, this word appeared from diplomatic circles. In English, to reside is a verb with many meanings. For example, a word can mean "abide," "dwell," "be," "live," and so on. Thus, it turns out that a resident is a person who permanently resides in any country. It should be noted that they may not be a citizen of the state.

Additional values

The word "resident" is also used to refer to a diplomatic representative of a Western state. At the same time, his rank is lower than that of the envoy. The resident is also the head of the colonial administration in a number of protectorates. A fairly common meaning of the word is senior spy. A secret representative of foreign intelligence, the head of an intelligence network, was called a resident. This meaning has taken root in the domestic consciousness after watching quite popular films about intelligence officers. In English, the word resident refers to a non-migratory bird.

Russian tax resident

This definition applies to people who are fully covered by domestic legislation, including the Tax Code. The administrative and economic order prescribes the mandatory registration of a person in the territory of residence. This is necessary to obtain the relevant documents confirming the status of a tax resident of the Russian Federation. The TC provides a fairly clear definition. Thus, a tax resident of the Russian Federation is a person who actually stays in the territory of the state for at least 183 days (calendar) within 12 consecutive months. When determining this legal provision in order to calculate personal income tax, it is necessary to take into account the days of actual stay in the country. If a person is not considered a tax resident, then a rate of 30% is applied to his income. This procedure is established by article 224 of the Tax Code, in paragraph 3. The tax at the rate of 30% should be calculated for each amount of total income separately.

Confirmation documents

Tax residents are individuals who have the following securities:

• Documents from places of work (current and previous), which are issued in accordance with the data from the time sheet.
• Copies of the passport, in which there are marks of the border services about the fact of crossing the border.
• Receipts for accommodation in hotels / hotels.
• Document on registration at the place of stay (residence).
• School paper.
• Other documents that are drawn up in accordance with the procedure prescribed by law, on the basis of which a person is considered a tax resident.

Object of taxation

It is the income that a tax resident of Russia receives from domestic sources and those located outside the country. When determining the personal income tax base in relation to income on which a rate of 13% is charged, a person has the right to use property, social and standard deductions.

Source income

Tax residents of the Russian Federation are people who stay in the country during the above period, as well as receive remuneration for the performance of labor and other duties, services rendered, work performed and other legal actions within the state. This provision is found in Art. 208 of the Tax Code (clause 1). In this case, it does not matter whether the foreign or domestic company will pay remuneration. Domestic income also includes allowances and pensions, which are provided for by the current domestic legislation. A tax resident may carry out work and other legal activities, provide services outside the country. In this case, his income is considered as coming from sources located outside the state.

Rate 13%

All income that a tax resident receives from domestic sources is subject to taxation at a rate of 13%. This requirement is fixed in Art. 224, paragraph 1 of the Tax Code. A tax resident is entitled to standard deductions. Among them is a reduction in deductions for children. The deduction for a child is due until the month in which the income of the worker, calculated on an accrual basis from the beginning of the reporting (tax) period, exceeds 280 thousand rubles. The procedure for granting such a reduction is described in Art. 218 NK. Tax amounts at the rate of 13% are calculated on an accrual basis from the beginning of the period to the end of each month in relation to all income to which the specified rate is applied, accrued to the payer for this period, including payments already withheld.

How to count calendar days?

183 days of stay in the country, after which an individual will be considered a tax resident, are calculated by summing up all calendar days when he stayed in the Russian Federation for 12 consecutive months. When determining the legal status, the employer also takes into account the dates of entry and exit from the state, since in fact the person was in its territory. With regard to education and treatment, the TC does not prescribe continuity for 183 days. The time of departure outside the country for 12 consecutive months is not taken into account, except for a number of cases. In particular, they include short-term treatment and study abroad. A short term is a period that lasts less than six months.

Definition of 12 months

The letter from the Federal Tax Service indicates that they may not be calendar. A twelve-month period can begin in one period and end in another period. This provision is explained in the letters of the Ministry of Finance. During the tax year, the accounting department determines the twelve-month period on the date when the employee received income - wages. The day of receipt is considered the last day of the month for which the accrual was made. If vacation pay was issued, then the date of their actual receipt is considered.

Change of tax status

In this case, the procedure for taxation of income will also change. Many employers are interested in whether they should notify the employee that his status has changed, and he has the right to return personal income tax? In Art. 24 (clauses 3 and 3.1) of the Tax Code lists the duties of a tax agent. The regulations do not provide that the employer must notify the employee that the latter has become a tax resident. However, in this situation, attention should be paid to Art. 231, para. 1, para. 2 NK. The provision states that the tax agent must inform the payer of information about each known fact of excess tax withholding and its amount. This must be done within ten days from the moment it became known. The specialists of the Ministry of Finance believe that the employer can notify the employee in any form. The procedure for notification should be agreed with the payer in advance.

Recalculation, additional accrual and return of personal income tax

If at the end of the reporting period the tax status has changed, a different rate should be applied to all income received during the year. The recalculation must be done by the employer. The tax agent should not return the overpayment of personal income tax if the worker acquired the status of a resident at the end of the reporting period. This procedure is carried out by the authorized body in which the payer is registered at the place of stay or residence.

Documents for return

The taxpayer must submit the following papers to the tax service:

1. Statement. It is drawn up in writing (Article 78, paragraph 6 of the Tax Code).
2. tax return. It is filled in the form 3-NDFL.
3. Documents that certify that a person has the status of a tax resident of Russia in this period.

The procedure in accordance with which the refund of amounts is carried out is established in Art. 78 NK. The tax authority is obliged to make a decision on the satisfaction of the payer's application within 10 days from the date of its receipt. The authorized body must notify about it no later than 5 days from the moment of its adoption.

Form 2-NDFL

A tax resident certificate contains information on the amount of deductions withheld in excess. These data are indicated in paragraph 5.6, section five, which shows the total amounts of income and fees at the end of the period by interest rate. The paper must be submitted to the tax office no later than April 1 of the year following the past one. The certificate also contains a table on income subject to taxation of 13%.

Finally

The rate of 13%, according to the current Tax Code, is applied to all income for tax residents of the Russian Federation. For people who do not belong to this category, tariffing is carried out at 30%. However, from general rules there are a few exceptions. In particular, if a foreign citizen has entered into an employment contract for a period exceeding 183 days, then a 13% rate is applied to his income. But if the employee left Russia before the end of the specified period, and the deductions remained unchanged, then payments to the budget are considered incorrect. If such facts are revealed, a fine sanction may be imposed on the employer. As for foreign migrants, they are automatically non-residents. They remain so for six months from the date of entry. This category also includes Russian citizens who permanently live outside the country. In some cases, people receive citizenship within 3 months. However, even in this case, they are considered non-residents of the Russian Federation. They enter this category until the period of their stay in the country does not exceed 183 days.

Tax residents of the Russian Federation are all citizens registered or living here in fact about one hundred and eighty three days for twelve months without going abroad. This provision is enshrined in the laws governing currency transactions, including international relations.

Some legislative acts indicate that citizens who have certain duties and rights are recognized as tax residents of the Russian Federation. But in some situations, these concepts have significant differences in the scope of use.

Important! People who live in the country for more than 183 days are not considered tax residents. For example, foreign tourists who arrived at the resort or on an excursion, students who come to study, as well as citizens who come here for employment. That is, the fact that a person has the citizenship of the Russian Federation does not affect the determination of his residency.

It can be said that citizens of another country and even persons without citizenship can be tax residents of the country. A citizen who does not receive official income is not a tax resident (NR). It can be noted that persons who are not the NR of Russia are treated as taxpayers solely on the basis of profit.

Individual as a tax resident

HP is subject to taxes. It has a similar status due to its permanent location. All payers of tax duties are divided into people who are residents and non-residents of this state. Assigning a taxpayer to this group determines the presence of his tax status and his due responsibility.

HP is a physical a person permanently residing on the territory of the Russian state. This applies to both foreign residents and stateless persons, however, who in fact reside on its territory for at least one hundred and eighty-three days throughout the year.

Residence status in Russia must be renewed every year. There are situations when the criterion of short-term residence in the state alone is not enough to establish residency.

In this case, other signs apply, namely:

• location of own housing;
• personal and economic ties;
• citizenship.

For a legal entity that is a taxpayer, testing is carried out in the form of a test by a foreign corporation, which directly depends on the country in which this type of testing is formed, as well as the actual location, the area in which central control and management will be carried out, the area where the current management of the company is carried out , business purpose.

Its useful to note! To be HP legal entities are obliged to make contributions to the budget of the state to which they are directly related according to the status established for them by the tax code. For each individual, this is considered fundamental, since it depends on him what tax must be paid - thirteen percent for a resident or thirty percent for a non-resident, because the difference in the amount is very large. Citizenship does not play any role in determining residency status.

But the status of FL HP has its own properties, which lie in the fact that those persons who have the status of residency pay tax on personal income only on profits received only from the country's sources. They restore their residency status for each compensation period.

Important! The return of excess funds for personal income tax can only be made at the end of the year. The refund is made directly through the tax structure. This type of taxpayer is not affected by the rules on standard, property and social tax deductions.

It is possible to attest to the status of residence with the help of any official document that certifies the actual residence on the territory of the Russian state for more than one hundred and eighty-three days. Such documents are considered to be a passport, where there is a note about arrival in this state, tickets, visas with stamps, a certificate of registration at the place of temporary residence.

What is the difference between a tax resident and a non-resident?

According to Article Eleven Tax Code Russian Federation The NR of a state is a FL who actually resides in a given state for about one hundred and eighty-three days. That is, the status of a resident of the Russian Federation is determined based on the length of stay in the country in each calendar year (from January 1 to December 31), excluding recent and subsequent periods.

Resident is called LE or FL, which is registered in the country and which is fully covered by the law.

A non-resident is called LE or FL, which operates in one state, but is permanently registered and lives in another.

Non-residents pay tax only on income they receive from sources in the territory of the Russian Federation. This is precisely the difference between a resident and a non-resident.

Object of taxation of a resident

The object of taxation of a resident is his income, in particular, cash received in the form of wages, scholarships, pensions and other types of income. For residents, the object of taxation will be all the profit they receive from sources both in Russia and abroad.

Confirmation of the status of a tax resident of the Russian Federation

Issue a Confirmation of the status of a tax resident of the Russian Federation individuals , which are registered as individual entrepreneurs, are registered in tax office and who pay taxes and fees on the territory of Russia, provided for by agreements in order to avoid double taxation.

The confirmation is issued when:

1. providing a certificate of the established form to the relevant organizations;
2. signing by the appointed official of the application of the established form;
3. stamping by an authorized person in a specialized tax authority.

FAQ

• Question 1: Am I considered the NR of the Russian state if I have lived on its territory for one hundred and ninety days since the beginning of the year, but then left to live outside the state until the end of this year?

Answer: When determining the tax status of an individual entrepreneur, a twelve-month period must be taken into account, which determines the date of the acquisition of profit, including one that began in one tax calendar period and lasts in another tax year.

• Question 2: Hello! Can you tell me what documents determine the status of residence for a citizen of the Russian Federation?

Answer: The following documents are required: a passport of a citizen of the Russian Federation; a mark on crossing the border in order to monthly control the stay on the territory of Russia.

• Question 3: I have applied for a Temporary Residence Permit. Will I be a resident of the Russian Federation after the cancellation of the TRP?

Answer: A tax resident is a person who has lived in the territory of the Russian Federation for one hundred and eighty-three calendar days.