- February 8, 2019
Plan Your Filings in Advance
We are glad to offer our services aimed at simplifying the process of filing tax declarations. The main issues associated with this process are described below.
While most taxpayers do not need to file tax returns in Russia, some categories of taxpayers do have to file tax return forms annually (Article 229 of Tax Code). Russian and foreign citizens who are Russian tax residents, in certain cases have to file a tax return to report income received from all sources. Non-residents have to report income received from sources located in Russia. A person can be considered a tax resident if he resided in Russia for at least 183 days during last 12 calendar months.
The deadline to file tax returns for income earned in 2018 is April 30, 2019. Tax returns can be filed personally or by a power of attorney.
The following individuals are obligated to file tax returns (Article 228, 227 of the Tax Code):
- Russian tax residents who received income from sources located abroad (including dividends and interest on securities as well as security payments);
- Individuals whose income was received from non-tax agent source, such as property lease income or proceeds from selling property, which has been owned by taxpayer for less than 3 years (or 5 years for sale of real estate bought by taxpayer after January 1, 2016); proceeds from sale of securities or equity interests;
- Other individuals who received income or gain from non-tax agents;
- Individual entrepreneurs;
- Private practitioners.
Employees who receive income solely from persons who are so-called tax agents (registered employers) are not obligated to file a tax return. They may file tax returns at their own discretion if they want to claim the following types of deductions:
- Charitable deductions;
- Education expenses;
- Medical expenses;
- Expenses connected with construction and/or purchase of the taxpayers’ residential premises;
- Expenditures on private pension provision
- The costs of voluntary pension insurance and voluntary life insurance
N.B.: A taxpayer may obtain a tax refund in connection with a change of the applicable tax rate from 30% to 13% in accordance with the acquired status of a tax resident of Russia during 2018, by filing with the tax office a tax return as well as documents confirming the tax residency by April 30, 2019 (Article 231 of the Tax Code).
We are pleased to offer our advisory services in complying with these requirements, including the drafting and filing of all the required documents.
If you have any questions or need additional information, please feel free to contact our specialists.
We look forward to the opportunity to cooperate with you further.