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Rate of Exchange 15.12.2018

83,71 -0,21
66,43 0,18
75,39 0,00
66,79 0,01
Source: ЦБ РФ

Avoidance of double taxation

dollarcalculatorAccording to the general rule, tax residents of the Russian Federation don't have the right to set-off of taxes paid outside Russia. However, if the country where the tax has been paid, there is an agreement (contract) for the avoidance of double taxation with the Russian Federation, when deciding the matter about set-off , it is necessary to be guided by the rules of the this agreement (contract).
In order to take an advantage of this agreement, the individual person must submit to the tax authorities the documents confirming that:
- That the person is a tax resident of another country, in respect of the agreement;
- That the earned income tax paid (the fact of tax payment be confirmed by the tax authority of a foreign country).

The documents must be presented either before tax payment in the Russian Federation, or no later than one year following the year in which the taxpayer claims to an exemption from the tax payment, realization of set-off, the deduction in accordance with the agreement.
Taxation of non-residents income
Tax residents of the Russian Federation,- the individuals persons who are actually in Russia for at least 183 days within 12 consecutive months. An individual may have the status of a resident or nonresident for personal income tax, regardless of their nationality.

Non-residents are paid tax on income, derived from sources in the Russian Federation, for example:
-Remuneration, received for the performance of job duties, work and services rendered in the Russian Federation;
- Income from the sale of immovable property located in Russia;
-Income from renting property in the Russian Federation;
- Revenue obtained from the use of copyright in the Russian Federation;
- Dividends and interests received from Russian organizations.

All taxable income of non-residents (except for the dividends) applies a flat rate – is 30% (eg, salaries, and material benefits in the form of savings on interest received by non-residents are taxed at a rate of 30%).

Starting from January 1, 2008 for non-resident income tax rate on received dividends is 15%.
Certain categories of foreign citizens do not pay income tax on their income. Among them:
1) heads and staff of representative offices of foreign states with diplomatic and consular rank, and member of their families;
2) the administrative- technical and service staff of foreign representations;
3) the members of international organizations.

Specific conditions of exemption from payment of income tax for specified categories of foreign nationals are indicated in article.215 of Tax Code.

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