The government has withdrawn the project to increase personal income tax to 30% for relocant freelancers

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The government withdrew from the State Duma a bill on raising the tax rate for Russians working from abroad without an employment contract. The document is going to be amended.

The fact that the government withdrew the bill to increase personal income tax to 30% for freelance relocators, reported RBC . The information was confirmed to TASS by the press service of the government. “It is necessary to make a number of technical clarifications to the bill before it is sent to the State Duma,” they said.

A bill containing various amendments to the Tax Code was submitted to the State Duma the day before. Most of the innovations from more than two hundred pages of the document will not directly affect the citizens. But one concerns the taxation of workers who left Russia.

“A bill has been submitted to the Duma obliging Russian companies to levy 30% of personal income tax on payments in favor of employees who have left abroad after they lose their Russian tax residency in some cases,” the State Duma said in a statement without specifying what kind of “a number of cases” these are.

The Ministry of Finance clarified that the project would not affect “employees who work under labor contracts, for them the current tax conditions do not change in any way.” From the available data, it followed that it was planned to collect personal income tax at a rate of 30% from freelancers who went abroad, ceased to be Russian tax residents, but continue to provide services to Russian companies under GPC agreements.

• Read more about the upcoming amendments and who they will affect here .
• What "technical refinements" are planned to be introduced into the bill is unknown. Its first version provided for an increase in personal income tax up to 30% for the departed employees of Russian companies working under labor contracts. And Vyacheslav Volodin proposed to oblige to pay personal income tax at a rate of 30% of individual entrepreneurs and self-employed people who left the country.

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