Foreigner with a Residence Permit Resident or Non-Resident

Who is a tax resident and who is a non-resident?

Statuses are determined by the Tax Code of the Russian Federation (Chapter 23) in order to determine the percentage tax rate for individuals. “Resident” status is granted to persons who are registered and reside in the country and comply with the requirements of the law.

Citizens included in a certain list approved by the legislative bodies of the Russian Federation have “resident” status:

• citizens of Russia (having a civil passport), if they do not live abroad for more than 365 days, as well as those who have received a residence permit of another country;
• staying in another state on a study/work visa;
• foreigners who have received a residence permit;
• officially registered legal entities;
• employees of consulates and diplomatic institutions located in other states;
• municipal bodies and their constituent entities.

Non-residents are individuals/legal entities without a permanent place of residence (not residing on a permanent basis). Such citizens are those who stay less than 183 days in the country within 1 year.

It is important to understand the difference, because even having Russian citizenship, but at the same time being, for example, at work in another state, a person becomes a resident of another country.

Note! Determination of status is directly related to taxation, and also determines the portion of income that is subject to taxation. For a non-resident, the taxable part is the income that he receives in Russia.

Does a foreign citizen with a residence permit become a resident?

11:11, March 26, 2021 2 0 5038

The question of whether a foreigner with a residence permit is a resident or a non-resident is of concern to a large number of people who have immigrated to Russia. Employers are also interested in this, because the tax rate on the income of a migrant who receives a job depends on it. The article further describes in detail: what is the difference between the concepts of what a foreign citizen needs in order to obtain status, and how a residence permit affects this.

How to explain these two concepts?

The concept of “resident” means an individual or legal entity who is registered in the territory of the state where he currently resides, and at the same time unquestioningly obeys the laws and regulations of the country.

According to the legislation of the Russian Federation, the following persons have confirmation of the status of a resident of the state:

1. People who own an internal Russian passport. The exception is citizens living abroad for a year or more with a residence permit. As well as persons staying abroad for a year or more on a work or study visa.
2. An individual located within the sovereign borders of the Russian Federation, where he was officially issued a residence permit. In this case, it is not necessary to have an internal passport.
3. Any legal entity registered in accordance with the laws of Russia.
4. Representative offices and subsidiaries located outside Russian territory, but registered in accordance with the law.
5. Diplomatic institutions and consulates of the Russian Federation located abroad.
6. All municipalities and entities that are part of.

In order to be considered a resident, you must meet the above points.

Non-resident: who is he?

This concept means an individual or legal entity that does not have a permanent place of residence, in accordance with the legislation of the state. Namely, within the territorial borders of the power where the person is located, he does not live on a permanent basis. According to the laws of the Russian Federation, a person who stays in the country for less than 6 months within one year is not considered a resident.

It is worth clearly understanding the difference between these two concepts. In the case of citizenship, you need to remember: if a person owns an internal passport of one state, but for one reason or another lives with permanent residence in another, then he is considered a resident of the country where he permanently resides.

Important! Taxation policy is closely related to this area. Depending on the status of the person, it is determined which part of the income will be subject to taxes. If a person located on Russian soil is a non-resident, then taxes will be levied only on that part of his income that he receives in the territory of the country of residence.

Tax conditions

According to the Code of the Russian Federation, the income tax rate between carriers of one and another status is different. Foreign migrants, non-residents, with certain exceptions, are subject to income tax of 30%. The exceptions are people who are highly professional specialists, as well as immigrants. These categories of people pay the state in the same way as official holders of internal Russian passports.

In accordance with the Tax Code of the Russian Federation, residents pay a duty of 13% of total income, but there are exceptions here too.

Attention! The legislation of the country provides for cases when it is possible to return overpaid taxes to a person. If a person worked at work for more than 183 days without leaving Russia, he is without a doubt a resident. But, often, employers charge income tax at a rate of 30% for their reinsurance. In this case, the foreigner has the opportunity to receive back from the state 17% of the total wages for the entire period of payment of the duty at an inflated rate.

Is a residence permit proof that a person is a resident of the country?

First, let’s determine what rights a foreign citizen receives when applying for a residence permit:

1. As you know, this document is issued for 5 years, during which time the foreigner may not leave the country.
2. A migrant also has the right to leave and return to Russia an unlimited number of times and reside in the territory of another country for up to six months.
3. A person has the opportunity to move freely throughout the entire territory of the Russian Federation and live wherever he wants, and not just in the region where the residence permit was issued.
4. The owner of the document has the right to freely engage in labor activity within the borders of Russia, that is, in any locality.
5. In the region where a foreign citizen is registered, having a residence permit, he can vote for one or another candidate in municipal elections.
6. A person has the right to use banking services.

All of the above benefits that a foreigner receives by applying for a residence permit indicate that the person intends to live permanently in the territory of the Russian Federation. Still, having a document does not guarantee that an immigrant has resident status.

When does a person become a resident?

The key factor determining resident status, other than the residence permit, is the time spent within the country's borders. Provided that a person does not live outside the Russian state for more than 183 days in one year, he will be a resident.

For example, if it is necessary to determine whether a foreign citizen holding a residence permit is considered a resident or non-resident on a certain date. Let's say next month. To do this, you need to count 365 days ago from the expected date. And calculate how much time the migrant spent in Russia during this period, and how much abroad. If the period of stay in the Russian Federation exceeds 183 days, then this is undoubtedly a resident. Otherwise, the foreign migrant does not have such status.

The main differences between residents and non-residents

For individuals and legal entities recognized as residents, the tax rate is 13% (for individuals) and 20% (for legal entities). Non-residents pay tax at a rate of 30%. For some categories it may be reduced:

• 13% of personal income tax is for persons with the status of refugees, migrants, highly qualified specialists, as well as for crew members of sea vessels, workers who have issued a labor patent;
• 15% on income received from investment activities.

The main differences are as follows:

• different bet sizes;
• list of objects subject to taxation;
• different procedures for determining the tax base;
• the difference in the possibilities for providing deductions and calculating taxes.

Resident status obliges you to declare, and therefore pay, all types of income, while a non-resident pays taxes only on the income he received in the country.

How to become a tax resident with a residence permit?

The conditions for recognizing an individual as a tax resident are specified in paragraph 2 of Article No. 207 of the Tax Code of Russia. Obtaining a residence permit does not automatically change the status from non-resident to tax resident. In order to obtain a certificate of receipt of this status, you need to contact the appropriate department at the place of registration or registration.

In order to have the necessary documents, you need to submit an application to the Interregional Inspectorate of the Federal Tax Service of the Data Center (centralized data processing) of the Russian Federation.

About the concept of “non-resident”

In the legislation of the Russian Federation, non-residents are:

• private individuals with permanent residence abroad of Russia. This category also includes those who are temporarily within our country;
• foreigners who are in Russia in the rank of employees of official government missions, as well as any international organizations, their representative offices and/or branches, the operation of which is not prohibited by Russian law;
• legal entities registered outside of Russia in accordance with the legislative framework of the states in whose territory they were registered;
• organizations that do not belong to the category of legal entities that are located outside of Russia and are guided in their activities by the legislation of other countries.

Read also: Who is a repatriate How to check an entry ban

Representative offices and/or branches of non-residents operating within the Russian Federation are also non-residents. In general, the concept of a non-resident is reflected in Art. 1 (clause 6) of Law No. 3615-1, regulating foreign exchange procedures and control in Russia. As for the connection between having a residence permit and the status of a resident or non-resident of the Russian Federation, you need to understand that the second does not follow from the first, and the first is one of the main grounds for the second.

Residence permit: Video

How to fill out an application?

The taxpayer submits an application of a certain sample to the authorized tax authority. You can submit it in person or through the Internet service of the Federal Tax Service.

Important! Pay attention to the “code” column. When applying in person, you must enter four zeros (0000), if you are sending an application by mail, tax authority code 9965.

The application must be filled out on a computer or manually (in black ink). All fields to be filled out must be written in clear, legible handwriting, without corrections or erasures.

To obtain resident status with a residence permit, the following documents are provided:

• copies of civil passport pages. It must be accompanied by a notarized translation;
• documents that can confirm that the individual was in the country during the period for which he wants to receive the document. A residence permit can serve as such a document; in addition, you can provide a foreign passport with marks of entry into the territory of the Russian Federation;
• certificates confirming income (copy of work book/contract, bank or accounting statement, etc.);
• rights to own real estate, payment of dividends, cash or payment checks, etc.

The application has the following form:

When submitting an application to an authorized person, it may be necessary to certify with the signature and seal of the tax authorities the form that is accepted in a foreign country. In this case, this form is adjusted to the above package of documents.

What does a residence permit provide?

Having a residence permit, a foreigner receives a number of tangible benefits. This:

• the opportunity not to leave the country during the entire period of validity of the residence permit;
• the right to leave and return to Russia as many times as desired, as well as to spend up to six months a year abroad. If there is a residence permit, its holder, a resident or non-resident of the Russian Federation, determines exactly the time that he spent abroad;
• the opportunity to freely choose a place of residence or stay in the Russian Federation, and not only in the region where you received a residence permit;
• the right to free employment without territorial restrictions;
• the right to vote in municipal elections at the place of permanent registration.

Among the advantages is also the opportunity to use banking services, and under certain conditions even take out a loan.

Find out in more detail what a residence permit is.

Where and how to obtain a document confirming the status of a resident of the Russian Federation?

The applicant can indicate the most convenient way to receive a document confirming receipt of resident status under a residence permit: in person, at the specified postal address, or by email.

One of the main goals of obtaining this status is to avoid double taxation. Documents are issued for 1 year, the one indicated in the application, but you can request data for previous years.

Important! If you need several copies of a document, please indicate the required number in the letter attached to your application.

The time period and procedure for considering the application are regulated by the Order. Confirmation of the status “tax resident of the Russian Federation” is issued no later than forty days after submitting the documents. In the case of a negative decision, when the resident status is not confirmed, the applicant receives a written notification indicating the reason for the negative decision.

Can a foreigner with a residence permit be considered a resident?

The topic is relevant both for employers planning to hire certain specialists, and for individuals who are traditionally interested in it when it is necessary to enter into relations with government or commercial structures. The question of what status a residence permit gives: resident or non-resident, arises often, since the flow of people to and from Russia is large, and this requires constant resolution of the problem of people's rights and opportunities.

A residence permit is a document that confirms a person’s right to permanent residence in the state.

Who can get a residence permit

To obtain a residence permit, foreigners must spend at least one year in Russia with a temporary residence permit.

• highly qualified specialists;
• native Russian speakers;
• citizens of Belarus;
• refugees and temporary asylum holders;
• migrants who became participants in the program for the resettlement of compatriots.

All of the listed categories of foreigners can apply for a residence permit immediately.

To obtain a residence permit, the applicant must submit an application to the nearest GUVM office and attach a number of documents to it:

• confirmation of the grounds for issuing a residence permit;
• health certificate;
• certificate of passing an exam in Russian language, history and Russian law (not for everyone);
• passport with certified translation;
• documents for housing where you intend to register;
• proof of income or savings;
• document confirming payment of the duty;
• photos.

proof of income or savings;.

What is the difference between resident or non-resident

The question of whether the status of a foreigner with a residence permit gives the right to be considered a resident arises when a migrant is employed by a private or public organization. In other matters this difference is not important.

representative offices of foreign companies that comply with the requirements of the legislation of the Russian Federation;.