ANNOUNCEMENT 17 Jun 2014

In June 2014, the government of the Russian Federation announced a change for the labour market access of foreign workers.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: No inception date

Labour market access

On 17 June 2014, media outlets reported that the State Duma, the Lower House of the Russian Parliament, is discussing bill number 546814-6 "On Amendments to Part Two of the Tax Code of the Russian Federation with regard to tax optimisation of employers hiring foreign workers". In this draft law is proposed an increase of tax rate for taxpayers, attracting employees, including under civil contracts, if the share of employed foreign nationals exceeds 30% (except for foreign citizens, involved as highly qualified specialists).
 
In case of approval of the draft bill, the tax rates for such taxpayers will be:

  • tax on personal income -18.5% ;
  • corporate income tax - 30% (of which 2% will be credited to the federal budget, 18% - to the budgets of the Russian Federation, 10% - in the local budget);
  • under the single agricultural tax - 9% ;
  • under the simplified tax system - 9% , if the object of taxation is income, and 22.5% , if the object of taxation is income minus expenses;
  • under the unified tax on imputed income for certain types of activities - 22.5% from the value of the imputed income;
  • under the patent system - 9%.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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