Personal Income Tax for Remote Workers: What’s New in 2025?
Starting in 2024, salaries of remote employees are now subject to Russian personal income tax (PIT), regardless of their tax residency status (resident or non-resident) or place of work (inside or outside of Russia). The employee’s location is irrelevant — Russian employers are obligated to withhold PIT.
From 2025, payments under civil law contracts will also fall under Russian PIT if there is a connection to Russia. This includes situations where the individual is a Russian tax resident, services are rendered in the Russian segment of the internet, or payments are transferred to a Russian bank account.
Even foreign clients may, in certain cases, be required to register in Russia and act as a tax agent to withhold PIT.
Importantly, if a foreign company paying for services does not withhold PIT, the responsibility to pay the tax shifts to the individual receiving the income.
