Relocation of employees abroad – what you need to know | News -

Relocation of employees abroad – what you need to know

In case of relocation of your employees outside of Russia, the following peculiarities of tax and migration legislation should be taken into consideration: 


Change of tax residency status

If an employee leaves outside the Russian Federation for more than 183 days per year, he or she acquires a non-resident status. Meaning that: 

  • The personal income tax rate changes from 13% to 30% (for certain types of income) 
  • The employee loses the right to get tax deductions 


The risk of formation of permanent establishment

The conduct of activities by employees on the territory of another State may entail a “permanent establishment”. The consequences:

  • Need to maintain accounting and tax records 
  • Declaration and payment of relevant taxes 
  • Other obligations by taxpayers


Relocation of a foreign employee

Keep in mind that: 

  • A work permit to work in Russia is cancelled if the employee stays outside of Russia for more than 6 months 
  • A work permit may be required in the country of relocation 
  • Need to comply with the local migration legislation


It is also necessary to pay attention to international treaties in order to avoid double taxation.

For more information please contact:

Subscribe to our newsletter and stay updated on the latest developments and events
We are always open to new ideas, solutions and questions Please leave your contact information and we will get back to you shortly
Thank you!

We will revert to you shortly

Leave your email address to stay up to date
Bellerage Online©
Technological Leadership in Financial Outsourcing

Bellerage Online© is a tool for quick and efficient interaction with your outsourcing partner. Monitor financial and administrative processes from anywhere in the world 24/7.

Accessible via web or mobile app, our unique platform allows you to:

  • Communicate with your consultant, create requests and rate our services in real-time,
  • Submit documents for processing,
  • Access your online library with all documents,
  • Sign documents with an e-signature,
  • Automate and control the internal business processes of your company
  • Analyze your financial figures using dynamic online reports

Bellerage Online© is free for our clients and available to an unlimited number of users - from operational staff to headquarter representatives. Available in an English and Russian version.


Your browser is not supported