New order of sharing personal income tax of foreign employees in Russia

04.12.2014

The procedure of payment personal income tax of foreign employees who working on the territory of Russia on the basis of work patent has been clarified. President Russian signed a federal law on November 24, 2014 № 374-FZ "On Amendments to Article 50 and 56 of the Budget Code of the Russian Federation."

The document stipulates that personal income tax paid in the form of a fixed advance payment by foreign citizens who work on the territory of Russia on the basis of  work patent,  will go into the budget of federal districts of the Russian Federation in the amount of 100 %.  

Now the revenues from personal income tax on foreigners who work on the basis of work patent shall be distributed equally (according to the norm of 50%) between the federal and regional budgets (Art. 50 para. 2, Art. 56 of the Budget Code of the Russian Federation).

Change in the mechanism of distribution of tax revenues (in terms of personal income tax on  foreign employees working on the basis of work patent) will come into force in January 2015.