According to the tax residence rules, effective from 1 January 2007, an individual is a Russian tax resident if one spends at least 183 days in Russia during any period of 12 consecutive months (instead of 183 days within a calendar year under the previous rules). However, the Russian Ministry of Finance letters imply that the ‘final’ tax residence status of an individual taxpayer shall still be defined by counting the number of days spent in Russia within the relevant fiscal year (i.e. calendar year) for Russian tax purposes. This position was confirmed by the Constitutional Court of the Russian Federation. Therefore, the approach for determining residence remains the same as under the previous legislation. In order to benefit from the 13% resident rate, a taxpayer should spend at least 183 days in Russia in a given calendar year.
As a temporary measure, individuals may voluntarily declare themselves Russian tax residents in 2020 if their stay in Russia in 2020 exceeds only 90 days. In order to enjoy this possibility individuals should file an application (in any format) with the tax authorities by 30 April 2021.
Note that both the day of arrival in Russia and the day of departure from Russia should be considered as days spent in Russia.
The determination of residence status is often modified by the provisions of double tax treaties (DTTs). Most treaties use various tests to determine in which of the two countries an individual is resident for treaty purposes. Usually, the following factors are considered when determining a place of residence:
- Permanent home.
- Personal and economic relations.