The Finance Ministry (MoF) issued letter No. 03-04-06/40525 on 15th July 2015 for clarifying the income tax treatment paid by a Russian employer to employees working on a remote basis abroad. The MoF noted that the income tax treatment of remuneration paid to the employees working on a distant basis abroad depends on whether such employees are treated as residents or non-residents for tax purposes. Residents are taxable on their worldwide income while non-residents are taxable on income resulting from Russian sources only. On the basis of article 209 of the Tax Code, the MoF stated that employees working on a remote basis abroad are not counted as tax residents in Russia.
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