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How to officially register with a foreign company and pay personal income tax to a citizen and tax resident of the Russian Federation while living in Russia and working remotely?
Given:
- A legal entity registered in another jurisdiction (not the Russian Federation or the CIS) that is not subject to the CFC
law activities
Required:
Officially formalize these relations before the tax RF with the payment of 13% personal income tax. Registration of IP is not of interest due to the high workload of the document flow, fines for reporting errors, higher risks and responsibilities than those of an individual employee.
Interested in practical experience. What documents were submitted to the tax office, in what order and how they reacted to the tax inspectorate (it is interesting, in which tax department this happened, since there may be differences - the size and shape of the eyes of the inspectors at the sight of such an unusual treatment).
UPD:
Please do not "sell" me registration as an individual entrepreneur in the answers and comments. Enough information about this. If you do not have information specifically on my question, it will be more useful if you leave my question without comment.
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Registration of IP is not of interest due to the high workload of the document flow, fines for reporting errors, higher risks and responsibilities than those of an individual employee.
Judging by the Tax Code, it turns out that an individual must declare such income on his own. That is, in fact, everything comes down to exactly the same actions as for an individual entrepreneur, only the amount of tax on the income of an individual will be 13%, and not 6% according to the simplified tax system6%
+ probably slightly more complex options for calculating pension contributions will be added, as here " fork" between the fixed rate of entrepreneurs and the percentage of income for salary workers.
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www.consultant.ru/document/cons_doc_LAW_28165/f905...
There is a user on the sql.ru forum who regularly covers this topic:
www.sql.ru/forum/actualutils.aspx?action=gotomsg&t...
www.sql.ru/forum/894767-3/narod-kto-freelansit- s-za... I
recommend reading his message history.
Unfortunately, as far as I understand, this is only possible with the UK. In the US and EU, entering into such a contract with a non-resident may be a violation of labor laws (but I do not have exact information). In the US, there is an exception that the provision of services by a foreigner outside the country is legal and such payments are counted as business expenses. But in order to provide services as a tax resident in Russia, you need an individual entrepreneur. With the EU, I could not understand at all how it is possible to legally work remotely, with or without IP.
There are two options.
1) Work under a contract for a fixed salary. Because you are not a resident in that country, then the employer transfers your entire salary without deductions, and your problem is to report to the tax office and pay taxes. Read and/or consult tax and tax experts. persons. Don't forget the pension fund.
2) Work under contracts or without them with invoicing to customers. This is, by definition, entrepreneurial activity and can only be carried out by an individual entrepreneur or LLC, with all the consequences.
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