Tax residents in Russia

Taxes in Russia

Main article: Taxes in Russia

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2025: Geolocation data will be the reason for updating information on the tax residency of Russians

The data geolocation will not be used directly to automatically determine the tax residency of bank customers, but they will be the reason for requesting an update of customer information. This was Ministry of Finance of the Russian Federation reported in early March 2025.

The Ministry of Finance, together with Rosfinmonitoring, the Central Bank and the Federal Tax Service, finalized a draft government decree, which clarifies the procedure for updating tax residence data previously received from clients of financial market organizations (OFRs).

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Фото: Freepik

The document provides that if the client mainly uses remote service channels for financial organizations from the territory of foreign countries, this may indicate a change in his tax status and requires updating information.

The OFR will be obliged to request data from customers to determine tax residency if it is established that they in more than 50% of cases use remote channels, including mobile applications, for at least six months.

These changes will allow the OFR to promptly update information on the tax residency of clients and provide the Federal Tax Service of Russia with more accurate and complete data, the Ministry of Finance is sure.

Residents and non-residents of Russia have different tax conditions. Residents pay personal income tax on a progressive scale with rates ranging from 13% to 22%, while the standard rate for non-residents is 30%. This rate applies to all income received from sources in Russia, with the exception of some categories, such as highly qualified specialists, Sergey Chelyshkov, partner of the tax practice of MEF Legal, explained to RBC. Also, non-residents are deprived of the right to property deductions, which excludes the possibility of taking into account the costs of acquiring shares for taxation, and all income from sales will be subject to personal income tax at a rate of 30%, Chelyshkov concludes.^[1]

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