Nov 03 2019
On September 30, 2019, the Government of the Russian Federation submitted to the State Duma a draft federal budget for future years, along with which a draft of the main directions of the budget, tax and customs tariff policy of the Russian Federation for 2020 and for the planning period 2021 and 2022 was presented. The main news of the document was a proposal to update the rules for acquiring the status of a tax resident of the Russian Federation for personal income tax purposes. The senior tax consultant of IBFS united Konstantin Asabin made a speech on this subject at the last meeting.
Brief conclusions of the speech:
- The Russian Federation follows global practice to increase the collection of personal income tax and the number of taxpayers;
- Double residency may become an urgent problem for Russian owners;
- New rules can significantly increase the administrative burden of tax authorities, and their proper implementation will require a qualitative increase in the level of administration of taxpayers - individuals;
- The main thing is that many capital owners will have to think about personal tax planning again. If there is a risk of becoming one of the “new residents”, it’s worth considering now.
You can find out about the Prospects for changing the criteria for recognizing an individual as a Russian tax resident in an article by Konstantin on IBFS united.Archives →