There is no provision for a taxable year other than the calendar year.
Tax in respect of employment earnings and certain other payments must be withheld at source by the entity making the payment, if this entity is a tax agent. This includes tax on income from the performance of labour under civil law contracts. Individuals receiving income from foreign sources and some other types of income from which tax is not withheld at source (unless tax agent properly reported underwithholding tax to tax authorities) are responsible for the declaration of taxable income and payment of Russian tax.
Declarations of income must be submitted no later than 30 April following the reporting year. Joint returns for a husband and wife are not permitted.
In the case of termination of a foreign national’s activities in Russia, declaration of actual income received during the period of stay in Russia must be made one month prior to permanent departure from Russia.
Payment of tax
The PIT payment is generally due no later than 15 July of the year following the reporting year. The payment needs to be made either in cash or from a ruble account opened with a Russian bank. As a rule, it is not possible to make payments in a foreign currency. Tax overpaid may be, at the taxpayer’s request, either refunded or credited against future liabilities. Tax may be paid by a third party on behalf of a taxpayer.
An individual entrepreneur under the general tax regime is obligated to make three advance payments: on 25 July, on 25 October, and on 25 January. The balance of the tax due is to be paid on 15 July.
Tax on professional income is payable on a monthly basis in accordance with a tax notice issued by the tax authorities.
If the tax was not withheld at source by a Russian tax agent and the agent properly informed tax authorities on this issue, then the tax shall be paid no later than 1 December of the year following the reporting year on the basis of tax assessment issued by tax authorities.
Tax audit process
A desk audit shall be performed within three months after the tax return filing.
The tax authority in Russia is the Federal Tax Service.
Statute of limitations
The statute of limitations is three years.
Topics of focus for tax authorities
The topic of focus for tax authorities is the removal of self-employed individuals from 'the grey area'.