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Russians stuck abroad risk changing tax residency
21 May 2020, 17:35
Russians stuck abroad risk changing tax residency
Photo: gurutrade.ru
Russian businessmen who remain abroad due to restrictions imposed against the backdrop of the coronavirus pandemic are at risk of becoming tax residents of the countries in which they are stuck.

The Ministry of Finance is not going to change the rule according to which for calculating taxes in Russia you need to be on its territory 183 days during the year.

For "involuntary" taxpayers, the Ministry of Finance is not going to make concessions, writes Forbes.

According to the publication, at least fifty businessmen from the ranking of two hundred richest entrepreneurs remained in Russia due to forced self-isolation. Among entrepreneurs, there are many who are mostly abroad, which exempts them from the declaration of foreign assets and controlled companies. At the same time, everyone will be required to declare foreign assets and pay tax on profits of controlled foreign companies if they remain more than 183 days in the territory of the Russian Federation.

A Forbes source who participated in the preparation of business proposals during a government meeting on anti-crisis measures said that in early March, it was proposed to make two exceptions. In particular, industry representatives asked not to take into account days of forced self-isolation in another country. According to the source, the Ministry of Finance refused to make concessions.

Earlier, the head of the Federal Tax Service Daniil Egorov during a webinar with representatives of the American and European business community made it clear that the authorities are not ready to make changes to the law.

Earlier, the Russian authorities approved a list of measures to support organizations and individual entrepreneurs. One of such measures was the possibility of postponing the deadlines for the submission of documents related to the establishment of the tax presidency for the previous year by three months.

Recall that at the beginning of October last year, the Ministry of Finance proposed reducing the period of stay in Russia to 90 days to recognize a taxpayer as a tax resident of the country. In addition, it was proposed to reduce the personal income tax rate for individuals who are not tax residents of Russia to the level established by Russian tax residents - 13%.

Economist Andrei Movchan called Siluanov's project stupidity.