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What is the procedure for taxation in the Russian Federation with a euro contract with a European company?
Good afternoon.
I am going to work under a contract with a large international company, or rather with its European branch.
The contract will be with an individual (me). Payment in EUR by transfer to a euro account in a Russian bank.
The contract is still being drawn up, but their representative says that I will not have to pay any taxes in the Russian Federation under the law on double taxation. I say that I will have to pay 3-personal income tax, 13%, since such laws are in the Russian Federation.
Misunderstandings in general, I want to go to the fin. consultant, but for now, who can come across, give advice?
Appendix 1
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see ch. 23 of the Tax Code of the Russian Federation. The money will come to you, you will have to pay the tax. This is your income, no matter what contract you receive it under.
To pay or not to pay income tax depends on whether a citizen of the Russian Federation has the status of a tax
resident. Non-residents are individuals who actually stay in Russia for
at least 183 calendar days within 12 consecutive months.
If a contract for work with a foreign organization is concluded in the second half of the year or a citizen
has been working for a long time, but spent a total of at least 183 calendar days in the Russian Federation during the year.
Then, as of the end of the year, he remains a tax resident of the Russian Federation and must independently
calculate, declare and pay personal income tax on foreign income in Russia at the end of the
tax period (calendar year).
If a citizen spends most of his time abroad, that is, for the period from January 1 to December 31 (tax period) he spent less than 183 days in Russia, then he cannot be recognized as a tax resident. Such a person is not required to pay personal income tax on income received from foreign companies in this tax period.
You do not pay tax - your tax agent abroad according to Art. 24 of the Tax Code of the Russian Federation: “Tax agents are persons who, in accordance with this Code, are responsible for calculating, withholding from the taxpayer and transferring taxes to the budget system of the Russian Federation.
Tax agents are required to:
1) correctly and timely calculate, withhold from funds, paid to taxpayers, and transfer taxes to the budget system of the Russian Federation to the appropriate accounts of the Federal Treasury;
2) notify the tax authority at the place of its registration in writing about the impossibility of withholding tax and the amount of the taxpayer's debt within one month from the date when the tax agent became aware of such circumstances;
(Item 2 as amended by Federal Law No. 137-FZ of July 27, 2006)
3) keep records of accrued and paid income to taxpayers, taxes calculated, withheld and transferred to the budget system of the Russian Federation, including for each taxpayer;
(clause 3 as amended by Federal Law No. 137-FZ of 27.07.2006)
4) submit to the tax authority at the place of its registration the documents necessary to control the correct calculation, withholding and transfer of taxes;
5) within four years to ensure the safety of the documents necessary for the calculation, withholding and transfer of taxes.
- the amount of tax paid in a foreign state in foreign currency - indicator (110) - is indicated on the basis of a document on income received and on payment of tax outside the Russian Federation, confirmed by the tax (financial) authority of the relevant foreign state. If income has been received from the same source of payment more than once, then the amounts of income, paid amounts of tax and exchange rates are indicated separately for each date of receipt of income and payment of tax;
- the amount of tax paid in a foreign state, in terms of rubles, - indicator (120) - is determined by multiplying the amount of tax paid in a foreign state in foreign currency by the foreign exchange rate to the ruble established by the Bank of Russia on the tax payment date;
- the amount of tax to be credited in the Russian Federation - indicator (140) - cannot exceed the values of the fields "Amount of tax paid in a foreign country in terms of rubles" and "Amount of tax calculated in the Russian Federation at the appropriate rate".
The answer is negative.
The offset of tax paid in Lithuania is possible in a situation where,
in accordance with the Double Taxation Agreement,
personal income tax can be paid both in Lithuania and in Russia (sailors, etc.).
Based on Art. 24 of the Agreement:
Article 24
Elimination of Double Taxation
If a resident of a Contracting State derives income or owns capital which, in accordance with this Agreement, may be taxed in the other Contracting State , the first-mentioned State, unless the national law of that State provides for more favorable taxation, allows :
a) make a deduction from the income tax payable by a resident of an amount equivalent to the income tax paid in that other State;
b) make a deduction from the tax on capital payable by a resident of an amount equivalent to the tax on capital paid in that other State.
However, such deduction shall not in any case exceed that part of the tax on income or tax on capital in the first-mentioned State calculated before the deduction is made in respect of income or capital which, as the case may be, may be taxed in that other State.
And as an additional argument, the Tax Code of the Russian Federation:
Article 232. Elimination of double taxation
1.The amounts of tax actually paid by a taxpayer who is a tax resident of the Russian Federation outside the Russian Federation in accordance with the legislation of other states on income received outside the Russian Federation shall not be credited when paying tax in the Russian Federation, unless otherwise provided by the relevant agreement (agreement) on avoidance of double taxation.
(as amended by Federal Law No. 166-FZ of December 29, 2000)
2. Unless otherwise established by this Code, in order to be exempt from paying taxes, making an offset, receiving tax deductions or other tax privileges, a taxpayer must submit to the tax authorities an official confirmation that he or she is a resident of a state with which the Russian Federation has entered into a valid of the tax period (or part thereof) an agreement (agreement) on the avoidance of double taxation, as well as a document on the income received and on the payment of tax by it outside the Russian Federation, confirmed by the tax authority of the relevant foreign state. The confirmation can be provided both before payment of tax or advance payments of tax, and within one year after the end of that tax period,
(Clause 2 as amended by the Federal Law of December 29, 2012 N 282-FZ)
Your situation is unambiguous - you are a resident of Russia and pay income tax in Russia
on the basis of clause 15 of the Double Taxation Treaty with Lithuania (below).
The Lithuanian representative office does not have to withhold income tax from you at all.
Show them paragraph 15 of the Double Taxation Agreement with Lithuania. Ask
for a refund of the excess withheld tax. Whatever they refer to, the international agreement
takes precedence.
Article 15
Income from dependent personal services
1. Subject to the provisions of articles 16, 18 and 19, wages and other similar remuneration derived by a resident of a Contracting State in respect of employment shall be taxable only in that State, unless the employment is in the other Contracting State. If employment is so carried on, such remuneration in connection therewith may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period beginning or ending in the relevant tax year; and
b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and
c) the remuneration is not borne by a permanent establishment or fixed base which the employer has in the other State.
3. Notwithstanding the preceding provisions of this article, remuneration derived from employment carried out on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
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Good afternoon,
part 4 of Art. 15 of the Constitution of the Russian Federation establishes that if an international dog. rules other than those established by law, then the rules of the international treaty shall apply. There is an agreement on the avoidance of double taxation in the Russian Federation with France - www.consultant.ru/document/cons_doc_LAW_17850/. What a dog. you will conclude - labor or civil law - in this context is not so important. The only time the company, with a cat. You conclude a contract - again, judging by the context of the question - will pay tax in France - you need to confirm this legal entity. fact documents.
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