S.V. Razgulin,

Active State Councilor of the Russian Federation 3rd class

The taxation of an individual's income is determined by his tax status. The types of income subject to taxation, the size of the applied rate, and the possibility of using tax deductions depend on the tax status. This interview is devoted to the issues of determining tax residency and calculating tax in the event of a change in this status during the year.

- Who are individuals – tax residents of the Russian Federation?
Clause 2 of Article 207 of the Tax Code of the Russian Federation recognizes as tax residents individuals who are actually in the Russian Federation for at least 183 calendar days over the next 12 consecutive months.
At the same time, military personnel and civil servants sent to work abroad are considered for the purposes of the Tax Code of the Russian Federation as tax residents of the Russian Federation.
In addition, in 2015, features are provided for the recognition as tax residents of individuals who were in the Republic of Crimea and Sevastopol in 2014.

- Does tax residency depend on citizenship?
According to the Tax Code of the Russian Federation, no. A Russian citizen may not be a tax resident of the Russian Federation. The following can be recognized as tax residents of the Russian Federation: a foreign citizen, a stateless person.
At the same time, it is necessary to take into account the agreements the Russian Federation has with foreign countries. An international agreement may establish a different procedure for determining residence. In particular, provide options for resolving situations where an individual is a resident of both Contracting States. For example, in such a situation, recognize a person as a resident of the Contracting State in which he has permanent residence.
On January 1, 2015, the Treaty on the Eurasian Economic Union dated May 29, 2014 came into force. Taking into account Article 73 of the Treaty, personal income tax is imposed on the income of a resident of a state party to the Treaty (Republic of Belarus, Republic of Kazakhstan) from employment on the territory of the Russian Federation from the first day of work under an employment contract at a rate of 13%. That is, at the rate provided for in Article 224 of the Tax Code of the Russian Federation for residents.
From January 2, 2015, this procedure also applies to residents of the Republic of Armenia. In the near future, it will extend to residents of the Kyrgyz Republic.
It appears that the application of a 13% rate to income from employment in the Russian Federation does not mean automatic recognition of persons from the above states as tax residents of the Russian Federation. Their tax status is determined in a general manner - depending on the time spent in the Russian Federation. Therefore, if at the end of the tax period they are not recognized as tax residents of the Russian Federation, their income is subject to taxation at a rate of 30%. Information about the impossibility of withholding the taxpayer's debt must be submitted to the tax authority in the manner established by paragraph 5 of Article 226 of the Tax Code of the Russian Federation.

- What period for determining the time of stay is taken as 12 months?
When determining an individual's status, any continuous 12-month period must be taken into account. The specified period may begin in one tax period and end in another (for example, from April 15, 2014 to April 14, 2015). Moreover, during the specified period, 183 days themselves can be accumulated in total (summed up) - it is not necessary that they be spent in the Russian Federation continuously.
Dates of entry and exit are taken into account when calculating the days of stay in Russia.
At the same time, treatment, training (no more than 6 months) outside the Russian Federation, and since 2015, also performing work (providing services) in offshore hydrocarbon fields (regardless of the duration of work) does not interrupt the period of stay in the Russian Federation

Is it possible to immediately apply the 13% rate if the organization is sure that the individual will work in the Russian Federation for more than six months in the current tax period?
No, the expected period of stay of an individual in the Russian Federation is not taken into account (letter of the Ministry of Finance of Russia dated November 15, 2007 No. 03-04-06-01/394). If the tax authority reveals untimely withholding of tax, the fine under Article 123 of the Tax Code of the Russian Federation will be 20% of the unwithheld amount.
Before the expiration of 183 days of stay in the Russian Federation, the income of an individual must be taxed as the income of a non-resident - as a general rule, at a rate of 30%. Only for dividends and labor income of certain categories of non-residents, paragraph 3 of Article 224 of the Tax Code of the Russian Federation establishes reduced rates.

- How to confirm tax residency for personal income tax?
The Tax Code of the Russian Federation does not establish a list of documents confirming the actual presence of individuals in the Russian Federation. Responsibility for the calculation, withholding and transfer of tax, including the correct determination of the tax status of the income recipient, lies with the tax agent.
Law enforcement practice is based on the right of a tax agent to demand from the taxpayer any documents drawn up in accordance with the law, allowing to establish the number of calendar days of a given person’s stay on the territory of Russia. Such documents include certificates from the place of work, issued on the basis of a work time sheet, copies of a passport with marks from border control authorities about crossing the border, certificates of registration at the place of temporary stay.
It is advisable for the tax agent to retain documents submitted by an individual that relate only to confirmation of tax status at least until the end of the relevant current tax period.

What if the taxpayer reports that in the period preceding the payment of income, he was abroad for treatment?
The period of treatment up to 6 months inclusive is counted towards the period of stay in Russia. Treatment (receipt of medical services) can be confirmed by an individual by an agreement with a foreign medical organization, certificates of the time spent on treatment, or marks in a foreign passport.

What should a tax agent do if an individual refuses to provide documents confirming his residence?
When there are no supporting documents, and there are reasonable doubts that a person is a resident, the tax agent is recommended to apply a rate of 30% rather than 13%. At least until mid-July (if the person started working in January). If the taxpayer subsequently provides the tax agent with documents indicating that at the time of payment of income he was a tax resident of the Russian Federation, the tax amounts withheld at the rate of 30% turn out to be overpaid.

Let's assume that the employee is recognized as a tax resident. Is it necessary to check his status as a resident in the future?

Tax status is determined on each date the income is paid. This rule should be followed if there is reason to believe that the residence of an individual may change during the year.
The final tax status of an individual, which determines the taxation of income received by him during the tax period, is established based on the results of the tax period (calendar year). But in most cases, before the end of the tax period, one can conclude that the status of an individual will not change, and accordingly choose the rate to be applied to his income: 13% or 30%.
It should be borne in mind that the tax status changed at the end of the year applies to income received from January 1 of the year, and not from the moment of such change.
Please note that recalculation is made only for the tax period in which the person’s status has changed. For the previous tax period, tax obligations are not revised.

It may happen that a person recognized as a tax resident on the dates of payment of income terminates relations with the tax agent until his final status is determined based on the results of the current tax period. In this case, a possible subsequent change in the tax status of an individual does not affect the duties of the tax agent.

- Is it necessary to check the tax status when concluding civil contracts?
Of course it is necessary. At the same time, difficulties arise for the tax agent, especially when a long-term civil law agreement has been concluded with an individual, and the opportunity to verify the individual’s presence at the workplace is absent or not intended at all (for example, in a transaction to lease non-residential premises from an individual who is not individual entrepreneur). Therefore, recommendations for a tax agent to check the status of the income recipient are relevant for each payment of income before the individual’s final tax status is formed in the tax period.

- What if an individual sells his apartment in the Russian Federation and at the same time permanently resides abroad?

Income from the sale of property located in Russia is subject to taxation in the Russian Federation.
Clause 17.1 of Article 217 of the Tax Code of the Russian Federation exempts from taxation income received by tax residents of the Russian Federation for the corresponding tax period from the sale of residential houses, apartments, rooms, including privatized residential premises, dachas, garden houses or land plots and shares in the said property located in taxpayer's property for 3 years or more.
If an individual stays in the Russian Federation for less than 183 days in a tax period, such person is not recognized as a tax resident of the Russian Federation. Income from the sale of real estate owned by him in a given tax period will be subject to taxation in full. For such income, an individual must submit a declaration and pay tax on his own.

Tax authorities will be interested in fulfilling the obligation to pay tax by receiving information from Rosreestr authorities about the transfer of ownership of real estate.

The employee became a tax resident during the tax period. How can he return the amount of tax withheld at a rate of 30%?
If the employee continues to work for a tax agent, then during the remaining time until the end of the tax period, the amount of excess tax withheld will be counted towards the tax payment at a rate of 13% (no tax will be charged). This approach is reflected in the letter of the Ministry of Finance of Russia dated August 12, 2011 No. 03-04-08/4-146.
The Tax Agent of the Russian Federation does not provide for the ability of a tax agent to credit taxes excessively withheld from the income of an individual in one period against the fulfillment of his obligation to pay tax in another period.
The return of the tax amount to the taxpayer, in connection with the recalculation at the end of the tax period in accordance with his acquired status of tax resident of the Russian Federation, is carried out by the tax authority in the manner specified in paragraph 1.1 of Article 231 of the Tax Code of the Russian Federation and Article 78 of the Tax Code of the Russian Federation.
An individual must submit to the tax office a declaration, documents on overpaid tax, and confirmation of his tax status.

- What actions should be taken if an employee changes from a resident to a non-resident?

In this case, personal income tax must be recalculated upward - from 13 to 30% and without providing the employee with tax deductions (standard, social, property). The recalculation is done from the beginning of the calendar year in the month in which it became clear that the employee’s tax status for the current year can no longer change.
Personal income tax amounts calculated from the beginning of the year at a rate of 13% are sent to offset the tax calculated at a rate of 30% (clause 3 of Article 226 of the Tax Code of the Russian Federation).

If the organization was unable to withhold the entire amount of personal income tax recalculated at a rate of 30%, then no later than January 31 of the following year it is obliged to notify the inspectorate and the employee about this fact and the amount of debt.

Let's assume a different situation. The organization sent workers to work abroad, but continued to withhold taxes from their wages...

The income of a non-resident is taxed in the Russian Federation only if it is received from sources in the Russian Federation - from Russian persons.
Income from performing work outside the Russian Federation refers to income from sources outside the Russian Federation. Therefore, such income received by non-residents is not taxed in the Russian Federation, regardless of who made the payment (letter of the Ministry of Finance of Russia dated 02/09/2015 No. 03-04-05/5273). In this case, the organization made a mistake not in determining the status of the employee, but in determining the source of income. Amounts of tax excessively withheld by the organization must be returned to its employees in accordance with paragraph 1 of Article 231 of the Tax Code of the Russian Federation.
A similar refund procedure applies if the organization, upon presentation by an individual of documents confirming his permanent presence on the territory of the Russian Federation, withheld tax at a rate of 30%. This is not a recalculation of amounts due to a change in status, but an excessive collection of tax due to its incorrect determination.

Since 2015, tax resident status has begun to play a big role. The Tax Code of the Russian Federation includes provisions on a controlled foreign company and on the actual recipient of income.
Absolutely right. Since 2015, income received from sources outside the Russian Federation includes the amount of profit of a controlled foreign company. This became income for tax residents of the Russian Federation, recognized in accordance with the Tax Code of the Russian Federation as controlling persons of this company (clause 8 of paragraph 3 of Article 208 of the Tax Code of the Russian Federation).
When paying income to a foreign company from sources in the Russian Federation, it can indicate that the actual recipient of the income (beneficiary) is an individual - a tax resident of the Russian Federation. In this case, taxation of the paid income is carried out in accordance with part two of the Tax Code of the Russian Federation (Article 7 of the Tax Code of the Russian Federation).
The implementation of these provisions of the Tax Code of the Russian Federation will require tax residents of the Russian Federation to submit tax returns and pay tax on the income due to them.

- How to confirm Russian tax residency to offset foreign taxes?
For the purposes of applying agreements on the avoidance of double taxation, including the payment of taxes provided for by these agreements on the territory of the Russian Federation, an individual may obtain confirmation of tax residence of the Russian Federation. To confirm the actual status of a tax resident of the Russian Federation, you should contact the Interregional Inspectorate of the Federal Tax Service for centralized data processing.

Since January 16, 2018, confirming the status of a tax resident of the Russian Federation, as well as checking its availability, has become much easier. This can be done remotely, almost online, on the official website of the Russian Tax Service, where a new service of the same name has launched. It can be used for tax purposes to confirm their status not only by individuals, but also by individual entrepreneurs and legal entities. We tell you how the new service works.

New procedure for confirming tax residence

Since mid-January 2018, confirmation of the status of a tax resident of the Russian Federation has become possible using a new electronic service on the website of the Federal Tax Service of Russia. It’s called “Confirmation of the status of a tax resident of the Russian Federation”:

Let us recall that from July 1, 2017, tax authorities have a new obligation: upon application, issue to him or his representative an electronic or paper document confirming the status of a tax resident of the Russian Federation (subclause 16, clause 1, article 32 of the Tax Code of the Russian Federation).

The paper form, electronic format and procedure for issuing a certificate confirming the status of a tax resident of Russia are fixed by Order of the Federal Tax Service dated November 7, 2017 No. ММВ-7-17/837.

To be more precise, this order contains a sample application confirming the status of a tax resident of the Russian Federation and the status document itself (it does not have a separate name).

How to register

To begin confirming your status as a tax resident of the Russian Federation, you need to register in the new service. There are several ways:

• via email and password;
• TIN + password from the individual’s personal account on the Federal Tax Service website;
• qualified ES certificate;
• Gosusug website account.

Who is the new service intended for?

It is interesting that this service is addressed not only to ordinary individuals (Article 207 of the Tax Code of the Russian Federation). It also provides confirmation of the status of tax resident of the Russian Federation of a legal entity (Article 246.2 of the Tax Code of the Russian Federation) and an individual entrepreneur.

For this purpose, a special unique verification code is now used, which tax authorities automatically put on each document (see the last line in the figure above).

Absolutely all interested parties can check whether a document confirming the status of a tax resident of the Russian Federation was actually issued on the Federal Tax Service website. No authorizations, passwords, codes, logins, etc. are needed.

In all other cases (including when on a business trip or vacation abroad), the period of stay abroad is not included in the number of days of stay in Russia.

This procedure follows from paragraph 2 of Article 207 of the Tax Code of the Russian Federation. This conclusion is also confirmed by the Russian Ministry of Finance in a letter dated July 26, 2007 No. 03-04-06-01/268.

An example of determining a person’s tax status (resident or non-resident) for personal income tax purposes. During the year, the person repeatedly went on business trips abroad

The work of Moldovan citizen A.S. Kondratieva is associated with business trips. During 2015 (365 days), he was sent on business trips abroad three times for periods of 100, 20 and 40 days (excluding the day of departure from Russia and return to Russia). The total duration of official business trips abroad was 160 days.

In addition, Kondratiev went on vacation abroad for 24 days (excluding the day of departure from Russia and return to Russia).

In total, over the past 12 months, Kondratiev has carried out:

• abroad – 184 days (160 days + 24 days);
• on the territory of Russia 181 days (365 days - 184 days), that is, less than 183 days.

Kondratiev is recognized as a tax non-resident.

Situation: Is the 12-month period interrupted when determining the tax status of a foreigner who, due to the expiration of his residence permit in Russia, leaves the country? Next year he will enter the Russian Federation again.

No, it is not interrupted.

The legislation establishes a uniform procedure by which a person’s tax status is determined when calculating personal income tax for non-residents.

If over the next 12 consecutive months a person has been in Russia for 183 calendar days or more, he is considered taxable .

If during the next 12 consecutive months a person was in Russia for less than 183 calendar days, he is taxable .

This follows from the provisions of paragraph 2 of Article 207 of the Tax Code of the Russian Federation. A similar point of view is reflected in the letter of the Ministry of Finance of Russia dated May 5, 2008 No. 03-04-06-01/115.

The use of a 12-month period to determine the tax status of a personal income tax payer is mandatory. Moreover, if a person pays personal income tax on his own income, then the 12-month period is equal to the calendar year in which the income was received (Clause 2 of Article 207, Articles 216 and 228 of the Tax Code of the Russian Federation). Interruption of this period is not provided for by law (including for reasons, for example, termination or re-conclusion of an employment contract, departure and re-entry into the territory of Russia). At the same time, the number of days a person stays in Russia (less than or more than 183 days) during a 12-month period may be interrupted. This is confirmed by the provisions of paragraph 2 of Article 207 of the Tax Code of the Russian Federation.

If a person traveled abroad for treatment or study (for a period of no more than six months), then the 12-month period is not interrupted. The duration of trips is included in the calculation of 183 days (clause 2 of article 207 of the Tax Code of the Russian Federation). In this case, the purpose of the trip must be confirmed documented (for example, when undergoing treatment - an agreement with a medical institution, a certificate indicating the time of its implementation and a copy of the passport with a border control stamp) (letter of the Ministry of Finance of Russia dated June 26, 2008 No. 03-04-06- 01/182).

If a person left the Russian Federation for other reasons (including in connection with the renewal of migration documents, termination of an employment contract), then the 12-month period by which the person’s tax status is determined is also not interrupted. However, days spent abroad must be excluded from the calculation of 183 days (letter of the Ministry of Finance of Russia dated May 26, 2011 No. 03-04-06/6-123).

Documents confirming short-term stay abroad

Documents confirming a person’s presence outside Russia for short-term treatment or training include:

• contracts with medical (educational) institutions for treatment (training);

• certificates issued by medical (educational) institutions indicating the completion of treatment (training) indicating its time;

• copies of passport pages with special visas and border control stamps on border crossings.

At the same time, there are no restrictions on age, types of educational institutions and disciplines studied, medical institutions and diseases, or the list of countries in which training or treatment takes place.

This is stated in the letters of the Ministry of Finance of the Russian Federation dated June 26, 2008 No. 03-04-06-01/182, the Federal Tax Service of Russia dated October 15, 2015 No. OA-3-17/3850 and dated July 20, 2012 No. OA3- 13/2525.

Traveling abroad is only important for calculating the number of days of stay in Russia (less than or more than 183 days). It does not interrupt the course of the 12 month period.

This procedure follows from paragraph 2 of Article 207 of the Tax Code of the Russian Federation.

It is possible that over the course of a year (for example, seven months) the number of days a person stays in Russia will reach 183 days. In this case he becomes . And this status cannot change until the end of the year. This is confirmed by letters from the Ministry of Finance of Russia dated March 29, 2007 No. 03-04-06-01/94 and dated March 29, 2007 No. 03-04-06-01/95.

An example of determining a person’s tax status (resident or non-resident) for personal income tax purposes

In June 2014, A.V. Lvov received income from the sale of the car.

Lviv must calculate personal income tax on the amount received and transfer it to the budget independently (subclause 2, clause 1, article 228 of the Tax Code of the Russian Federation).

To find out what rate to take to calculate personal income tax, Lvov must determine its tax status (resident or non-resident).

The tax period for personal income tax is a year (Article 216 of the Tax Code of the Russian Federation). Lviv must calculate and transfer the tax to the budget based on its results - when the year ends (clause 4 of Article 228 of the Tax Code of the Russian Federation). Therefore, Lvov determined its tax status as of January 1, 2015 (when 2014 ended, in which it received income from the sale of a car).

The 12 months preceding this date are the period from January 1 to December 31, 2014 (365 days).

During this period, Lvov left Russia only once - for 28 days during vacation (excluding the day of departure from Russia and return to Russia). During this time, the course of the 12-month period during which Lviv must determine his time in Russia (more or less 183 days) is not interrupted. However, the 28 days that Lviv vacationed abroad are not included in the calculation of the time spent in Russia (more or less 183 days).

Thus, over the next 12 consecutive months of 2014, Lvov spent in the Russian Federation:
365 days – 28 days = 337 days

Since Lvov spent more than 183 days in Russia (337 days > 183 days) over the next 12 consecutive months of 2014, he is a tax resident of Russia.

Situation: Does a residence permit confirm the time of a person’s actual stay in Russia? The actual time of stay in the Russian Federation must be calculated to determine the tax status of a person (resident or non-resident) for the purposes of calculating personal income tax

No, it doesn't confirm.

The legislation does not contain a list of documents by which the number of days of stay in Russia can be determined to determine tax status. These can be any documents confirming the fact that a person is in the country. Thus, the dates of entry into and exit from Russia can be determined by the marks:

• in the passport;

• in a diplomatic passport;

• in the service passport;

• in the seafarer’s passport (seafarer’s identity card);

• in the migration card;

• in the refugee's travel document, etc.

If there is no mark in the passport (for example, a person came from Ukraine or the Republic of Belarus), then other documents may be proof of stay in Russia. For example, documents on registration of residence, receipts for hotel accommodation. For working people - timesheets or certificates from the place of work issued on the basis of these timesheets. For students - a certificate from the place of study, which confirms the actual attendance of the educational institution.

This follows from letters of the Ministry of Finance of Russia dated January 13, 2015 No. 03-04-05/69536, Federal Tax Service of Russia dated May 25, 2011 No. AS-3-3/1855.

A residence permit confirms only the right of a foreign citizen (stateless person) to permanent residence in Russia, as well as to free entry into Russia and exit from the country. For stateless persons, a residence permit is also an identity document. This is stated in paragraph 1 of Article 2 of the Law of July 25, 2002 No. 115-FZ.

Thus, a residence permit confirms a citizen’s right to reside in the Russian Federation (certifies his identity), but is not a document confirming the actual time a person is in the country.

Order of the Federal Tax Service of Russia dated November 7, 2017 N ММВ-7-17/837@ officially approved the procedure for confirming the status of a tax resident of the Russian Federation, the form and format of the application for obtaining this status, as well as the methods for submitting it to the tax authorities. The period for the provision of this service by the Federal Tax Service was also set at 40 days.

Starting from July 2017, the duties of the Federal Tax Service began to include confirmation of the status of a resident of the Russian Federation at the request of the taxpayer, but the procedure for this procedure was not spelled out in detail. We had to rely on the old information message of the Federal Tax Service, prepared even before the amendments were made to paragraph 1 of Art. 32 of the Tax Code of the Russian Federation.

Let's take a closer look at who is recognized as a tax resident and what has changed in order to confirm this status in 2017.

Tax resident - who is it?

A tax resident of the Russian Federation is an individual who stays in Russia for at least 183 days within 12 consecutive calendar months.

Note: this period is not interrupted when staying abroad for less than 6 months for treatment and training, as well as when performing work or providing services in offshore hydrocarbon fields.

Why do you need to confirm your Russian resident status?

Confirmation of this status may be necessary for both an individual and an organization in the following cases:

• If a Russian company provides services or sells goods to a foreign counterparty.

  In this case, in order to avoid double taxation, a foreign organization has the right to request confirmation of resident status (notification) from its counterparty - a Russian company.

• If an individual entrepreneur or a citizen provides services to a foreign partner.

  Just as in the first case, in order to avoid double taxation, a foreign partner has the right to request from the person providing services to him a document confirming the status of a resident of the Russian Federation.

• If an organization or citizen receives income from participation in the activities of a foreign company ().
• When the provision of the specified notification is required by a foreign tax authority.

Let us briefly consider how the procedure for obtaining this status has changed in 2017.

Comparative table of changes that occurred in order to confirm the status of a resident of the Russian Federation

Table No. 1. The procedure for obtaining confirmation of the status of a resident of the Russian Federation before and after the issuance of the Federal Tax Service order 07.11.2017 N ММВ-7-17/837@.

Reasons for comparison	Until December 2017	Since December 2017
Authority issuing the required document	Interdistrict Inspectorate of the Federal Tax Service of Russia for Data Centers	Federal Tax Service of the Russian Federation or a territorial tax authority authorized by it
Deadline for issuing notice
Application for issuance of a document confirming resident status	There was no official form for this document. Organizations, individual entrepreneurs and citizens had to provide an application drawn up in any form indicating the required details	The document form is attached to the Order (KND number 1111048)
Notice issued by the tax office	The form of notification was not established. The interested person was issued a certificate of the established form	The document form is attached to the Order (KND number 1120008)
	Personally. By mail	Personally. By mail. Via the Internet
Period for which notice is issued	A notification can be issued not only for the current calendar year, but also for previous periods if all necessary documents are submitted	For one calendar year

Let us consider in more detail the new procedure for receiving the specified notification from the tax office.

Document regulating the procedure

Starting from December 9, 2017, notification from the tax office about the status of a resident of the Russian Federation is received in accordance with the Order of the Federal Tax Service of November 7, 2017 N ММВ-7-17/837@.

This document describes in more detail the procedure for filing an application and issuing a notification by the tax authority. Also included in the appendices to the order is the form of the document submitted to the tax authority to receive the notification, and the form of the notification itself issued by the tax authority.

Authority issuing the notification

Since December 2017, confirmation of resident status and issuance of the corresponding notification is carried out directly by the Federal Tax Service or its authorized territorial body.

Application submitted to confirm resident status

Until December 2017, the application form submitted by an organization, individual entrepreneur or citizen to the tax authority did not exist at all; it was drawn up in a free form indicating the necessary documents named in the above-mentioned information message of the Federal Tax Service.

Starting from December 9, the application is submitted in accordance with the form approved by the Federal Tax Service of the Russian Federation (KND number 1111048), indicating the following mandatory information:

• Name of the legal entity (full name of individual entrepreneur or citizen).
• The year for which the applicant wants to receive notice.
• The reason for issuing the notification (for the application of a bilateral international treaty or for other purposes).
• Information about the identity document of an individual, if he does not have a TIN.
• Information about the time of stay of an individual entrepreneur or a citizen in the territory of the Russian Federation.
• Grounds for recognizing an organization as a tax resident of the Russian Federation.

What sections of the application are filled out by individual entrepreneurs and ordinary citizens?

• A title page indicating the full name and TIN, the year for which the notification is issued, and the method of receiving it.

  If a citizen does not have a TIN, he additionally fills out section 1 of page 002, where he indicates information about the identity document (passport, birth certificate, military ID, etc.)

• Information about the time of stay of an individual entrepreneur or a citizen on the territory of Russia (section 2 of page 002).

What sections does the organization fill out?

• A title page indicating the name of the organization, INN/KPP, the year for which the notification is issued, and the method of receiving the notification from the tax office.
• Grounds for recognizing an organization as a tax resident of the Russian Federation (section 3 of page 002).

Form of document to confirm the status of tax resident of the Russian Federation ().

Documents attached to the application

An organization, individual entrepreneur or citizen has the right to attach the following documents to the application:

• A copy of the agreement (contract) confirming receipt of income or the right to receive it in a foreign country.
• Documents confirming the ownership of property.
• The decision of the meeting of participants on the payment of dividends or other documents confirming the payment of dividends.
• Copies of payment orders (cash receipts).
• Accounting certificates.
• Other primary documentation.

Note: The application submitted by an individual entrepreneur or a citizen may be accompanied by copies of documents confirming the stay of this person on the territory of Russia during the period for which the notification must be received.

Important: if the documents attached to the application are drawn up in a foreign language, they must be translated into Russian and notarized.

Methods for submitting documents to the tax office

An application with a package of necessary documents can be sent to the tax authority:

• Personally.
• By registered mail with a list of attachments.
• On the Internet through the official website of the Federal Tax Service of the Russian Federation.

In the same way, an organization, individual entrepreneur or citizen can receive a notification from the tax office confirming the status of a resident of the Russian Federation.

Deadline for issuing a confirmation document

The period for issuing the notification is 40 days from the date the tax authority receives the necessary documents.

Period for which confirmation is issued

A notification of confirmation of the status of a resident of the Russian Federation is issued for one calendar year, separately for each source of income or property.

The Tax Code of the Russian Federation establishes different tax rates for tax residents of the Russian Federation and persons who are not tax residents. In this regard, in order to prevent double taxation situations in accordance with international agreements, the question often arises: how can one confirm the status of a tax resident of the Russian Federation, where to apply for confirmation and what documents must be provided.

The definition of a tax resident is given in the Tax Code of the Russian Federation (see paragraph 2 of article 207). The fact of establishing tax residency depends on the length of time an individual stays in Russia during the calendar year.

Who is a tax resident of the Russian Federation

An individual is recognized as a tax resident of the Russian Federation if during the year, that is, 12 consecutive months, he was actually in the Russian Federation for at least 183 calendar days. However, international treaties may establish a different definition of a tax resident, as stated in Art. 7 of the Tax Code of the Russian Federation.

Starting from January 1, 2017, tax authorities are required to provide the taxpayer with a document confirming his tax status upon request. The document can be submitted in paper form or in electronic form.

It should be noted that the Order on approval of the application form for the provision of a document confirming the status of a tax resident of the Russian Federation, and the Procedure for submitting a document confirming the status of a tax resident of the Russian Federation (Appendix No. 3 to the order of the Federal Tax Service of Russia No. ММВ-7-17/837@ dated November 7 2017), registered with the Ministry of Justice on November 27, 2017, but so far, at the moment, not approved.

Therefore, we will consider another way to confirm the status of a tax resident of the Russian Federation, which does not imply receiving confirmation from the tax authority (Part 6, Article 13 of Federal Law No. 401-FZ of November 30, 2016 and Subclause 16, Clause 1, Article 32 of the Tax Code of the Russian Federation) .

How to confirm the status of a tax resident of the Russian Federation for personal income tax payment

Talking about How can you confirm your status as a tax resident of the Russian Federation? It should also be noted that not only the rate of tax on personal income, in accordance with Art. 224 of the Tax Code of the Russian Federation, depends on the tax status of the taxpayer. Tax status also determines the application of personal income tax to income received from certain sources and exemption from taxation in certain cases (Article 209 and Clause 17.1 of Article 217 of the Tax Code of the Russian Federation).

Tax status is not a constant. It is determined by the citizen’s tax agent, including the employer or bank, as well as other persons, depending on the income received for each date he receives income, depending on the time actually spent in the country. The final tax status of a person is determined based on the results of the past tax period, which, in accordance with Art. 216 of the Tax Code of the Russian Federation, the year is recognized.

Thus, until the tax period has ended, each time an individual receives income, his tax agent must independently determine the person’s tax status. There is no officially approved procedure for confirming the time actually spent on the territory of the Russian Federation in the tax legislation of the Russian Federation, therefore tax agents obtain the necessary information independently, if necessary, requesting the required documents from the citizen. That is, in each situation where a person receives income, his tax agent independently determines his tax status.

What documents can confirm the fact of a person’s presence on the territory of the Russian Federation?

1. Data from the time sheet;
2. Copies of passport pages with marks from border control authorities about the time of border crossing;
3. Documents on registration at the place of residence or place of stay, drawn up in accordance with the procedure established by the legislation of the Russian Federation;
4. Information from migration cards.

As a result of this procedure, at the end of the year, a situation is likely where the tax status of the taxpayer will change, for example, he will acquire the status of a tax resident of the Russian Federation, and the amount of personal income tax will need to be recalculated.

To recalculate, at the end of the tax period, you must submit to the tax authority a tax return and documents confirming the tax status of the taxpayer in a given year. In this case, the tax authority makes a recalculation (Article 78, clause 1.1 of Article 231 of the Tax Code of the Russian Federation) and makes it in connection with the acquisition by a person of the status of a tax resident of the Russian Federation.

Confirmation of Russian tax resident status to avoid double taxation

The procedure for confirming tax status, including the required documents, is specified in the Information message of the Federal Tax Service of Russia “On the procedure for confirming the status of a tax resident of the Russian Federation.”

Citizens of the Russian Federation, foreign citizens and stateless persons can obtain confirmation of the status of tax resident of the Russian Federation from the MI of the Federal Tax Service of Russia for the Data Center (at the Interregional Inspectorate of the Federal Tax Service of Russia for centralized data processing). Since confirmation is issued based on the time actually spent in the country, confirmations for the current tax period begin to be issued no earlier than July 3 of the current year.

Confirmation for previous years can be obtained at any time. To do this, you only need to submit the necessary documents to confirm the time actually spent in Russia.

If you need to obtain confirmation of your tax status for a period of time earlier than 3 years before the date of application, you will be required to submit copies for the relevant tax periods. The copies must be marked by the tax authority, in addition, it is necessary to attach payment documents, according to which it is possible to confirm the fact of payment of tax on the relevant transactions in respect of which double taxation was possible. Therefore, to obtain proof of tax status for a specific tax period, you must submit the following documents:

1. Application in writing, in which the following information must be indicated:

• Full name of the applicant and his contact phone number;
• The name of the foreign state for submission to the tax authority of which confirmation of tax status is required;
• TIN of the applicant;
• The year for which you want to receive status confirmation;
• List of applications.

2. A copy of the applicant’s identity document;

3. Copies of documents according to which the person received income in a foreign country, for example:

• Copy If this document has been submitted previously, it is not required to be submitted again; you must provide a link to the letter to which a copy of the agreement was attached;
• The decision of the general meeting of shareholders on the payment of dividends;
• Documents according to which you received a pension from abroad;
• Other documents confirming receipt of income;

4. If the application is submitted by a citizen of the Russian Federation - copies of all pages of the foreign passport, if available;

5. Table for calculating the time spent in Russia according to the form (see Appendix to the Information Message of the Federal Tax Service of Russia dated February 26, 2008);

6. To justify the time actually spent on the territory of the Russian Federation, certificates from places of work in the Russian Federation, time sheets, copies of tickets, copies of notes in the passport about the time of crossing the state border, etc. are provided. These documents are required for foreign citizens or stateless persons who arrived in Russia from the territory of foreign states and with whom the Russian Federation has valid international agreements on a visa-free regime.

In addition to directly submitting the application, you can send it with all the necessary documents attached by postal mail with a delivery notification and a list of applications.

Address for departure: 125373, Moscow, Pokhodny proezd, house ownership 3, building 2. You can also submit documents and an application to the expedition of the Federal Tax Service of Russia at the address Moscow, st. Neglinnaya, 23.

Your application will be considered within 30 calendar days from the moment it is received by the MI of the Federal Tax Service of Russia for the data center.

What confirms the tax status of an individual

1. Certificate of the established form;
2. A form established by the legislation of a foreign state, certified by the signature of an authorized person and the seal of the tax authority. Such a form can be issued to confirm tax status only if the Federal Tax Service of Russia has been notified of the availability of such forms by the competent authorities of a foreign state. Also, information about these forms can be posted on the official website of the competent state authority; this will also be sufficient to prepare the appropriate form for submission to the tax authority of a foreign state.

As a general rule, an individual receives confirmation of his tax status in one copy. But if a foreign state, in accordance with its legislation, requires the submission of confirmation in two or more copies, and the competent authorities of this state notified the Federal Tax Service of Russia in the prescribed manner about the presence of such a feature of the legislation, the confirmation will be issued to the person in the required number of copies.