Insurance premiums on payments to a foreigner are not payable
Earlier, experts at the Ministry of Labour explained that a foreign employee working remotely abroad should enter into a contract of a civil-legal nature. According to Part 4 of Article 7 of the Federal Law № 212-FZ, dated 24.07.09, payments accrued by a Russian organization in favor of individuals who are foreign nationals, in connection with the implementation of their activities outside the territory of the Russian Federation in the framework of concluded contracts of a civil nature, the subject of which is the execution of works, provision of services, are not subject to insurance contributions to state extra-budgetary funds. Accordingly, the Russian organization should not calculate contributions to the foreigner payments, working remotely abroad in the GPA.
With regards to contributions for compulsory social insurance against industrial accidents and occupational diseases, the Russian company is obligated to pay them, if such an obligation is registered in the civil contract with the foreign remote worker. This follows from the provisions of paragraph 1 of Article 5 of the Federal Law dated 24/7/98 № 125-FZ.
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