Amendment to Art. 207 of Tax Code (RF Tax Code) - the Russian tax resident for the 2020 tax period

11/02/2020

Dear Clients and Partners, 

We inform you about the Amendment to Art. 207 Tax Code (RF Tax Code). On July 31, 2020, the rules for recognition as a Russian tax resident for the 2020 tax period came into force. 

According to the new clause 2.2, an individual can be recognized as a Russian tax resident for the tax period of 2020, subject to staying in the Russian Federation from 90 to 182 calendar days, inclusively, during 2020. 

As a general rule, for personal income tax purposes, a tax resident is a person who, on the date of receipt of income, is in the Russian Federation for at least 183 calendar days for 12 consecutive months. 

The essence of the changes is as follows: a person (not necessarily a Russian citizen) who during 2020 will be in Russia from 90 to 182 calendar days, inclusive, can be recognized as a tax resident of the Russian Federation in 2020 in a special procedure. An application in any form for recognition of person as a tax resident should be submitted to the inspectorate of the place of residence.