Posted on June 30, 2013 in Labor and Employment
Standart LLC – Moscow Office
It is allowed to engage foreign citizens for work in Russia.
When foreign citizens are employed subject to both labor and civil law contracts in the territory of the Russian Federation, this should be done in compliance with the Federal law as of 25.07.2002 N 115-FZ "On the legal status of foreign citizens in the Russian Federation".
The named federal law provides that the employer should obtain a permission to engage and employ foreign personnel and the employees themselves should obtain work permits. The employer is also required to inform the Russian authorities including tax authorities.
There is no need to obtain permission to engage and employ foreign personnel if the employer wants to employ a foreign highly-qualified specialist (s. 13 (4.5.2) of the said law).
Such specialist needs to have the following documents:
– invitation to enter Russia and a work permit if the foreign citizen entered Russia subject to a visa (s. 18 (2), 13 (4) of the said law);
– work permit for a non-visa foreigner (s.13.1(2), 13(4) of the said law).
If a foreign employee performs work without entering the Russian Federation (e.g., works online), he or she needs no permissions, and the relations are formalized just by labor contract.
The employer may engage and employ foreign employees without work permits or permissions to engage and employ, if the employees:
work in foreign companies which specialize in erection (or erection supervision) work, servicing and warranty maintenance, as well as post-warranty repair of technical equipment sold to the Russian Federation. The provision applies if a Russian company has a respective contract with a foreign company upon which the latter sends its employees to Russia. Foreign employees from visa countries are issued a standard business visa with technical maintenance as the purpose of visit;
are invited to Russia as scientists or academics, work as accredited journalists;
work in representative offices of foreign companies accredited in the RF within the number of employees agreed at accreditation according to international treaties of the RF and the principle of mutuality, provided that such treaties provide for no permissions (currently applicable only with France);
meet some other requirements, e.g. are permanently resident in Russia, participate in FIFA 2017-2018, Sochi 2014, Skolkovo projects .
To engage other types of foreign employees permissions are mandatory.
Foreign citizens who spend more than 183 days per year in Russia become Russian tax residents and pay 13% of their employment income as individual income tax. A year = 365 days before the income was received. Non-resident foreign employees pay 30%.
Employment income of non-resident highly-qualified specialists is subject to 13% tax.
As a general rule the amount of annual remuneration for highly-qualified specialists should be over RUR 2 mln (s. 13.2 (1.3) of the abovementioned law). The annual remuneration of scientific employees and academics of higher education institutions, national research centers, state scientific centers should be over RUR 1 mln, while the employees of Skolkovo may have any annual remuneration (s. 13.2(1.1-2) of the said law).
Starting from January, 1st 2012 foreign employees of companies who are residents of special industrial and production, tourist and leisure, as well as port economic areas are deemed highly-qualified specialists if their annual remuneration is over RUR 1 mln (s.13.2 (1.1) of the mentioned Federal law), and over 700 k RUR for residents of special techno-innovative economic areas (s. 113.2 (1.1.1)).
If a company employs foreign personnel without work permits and/or without permission to engage and employ foreign personnel (if applicable), the company is subject to fine in the amount of up to USD 27,000, and the employee is subject to deportation.
If you need legal support with migration law, employment (labor) law, tax law in Russia, please refer to Standart LLC, Moscow
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