Guidelines
Russian tax law is based on the Tax Code, which regulates all major taxes and tax procedure law. The Tax Code has been improved many times since it came into force more than 20 years ago and overall provides a reasonable framework.
The central issue of the last three years has been Western sanctions and Russian “counter-sanctions.” The tax sector has also been affected by this:
In 2023, as a countermeasure, double taxation treaties (DTTs) with so-called “unfriendly” countries (including all EU member states, the US, the UK, Japan, Taiwan, etc.) were suspended in the section on benefits and exemptions. However, the provisions on the avoidance of double taxation remain in force. Foreign tax can only be credited if the DTT benefits are taken into account, provided that the foreign state has not informed the Russian Federation of a reciprocal suspension. In practice, this means that in the absence of a reciprocal suspension, it is not possible to credit foreign withholding tax that is withheld in European countries due to Russia's inclusion in the EU list of non-cooperative countries (offshore list).
Foreign nationals working in Russia are subject to both Russian labor and migration legislation. For a dedicated guide on labor law matters, please refer to the relevant resource provided here. The present guide focuses specifically on the migration-related aspects of employment.
Foreign citizens may work in the Russian Federation in a full and lawful capacity only if they possess an employment contract, a work permit, and a work visa. The work permit and work visa are processed not by the foreign citizen themselves, but by their employer in Russia, i.e., a Russian organization (or a branch of a foreign organization).