A special tax regime for "traveling" skilled professionals will increase the personal income tax base

31 july 2018 | TASS

"Passing the bill introducing a special tax regime for "traveling" professionals can boost budget revenue from personal income tax," Irina Nikitina, the coordinator for Statutory Regulation of the project management office for the implementation of the Digital Economy program at the Analytical Center, told a TASS correspondent.

Irina Nikitina
Irina Nikitina
Project Management Office for Implementing the Digital Economy of the Russian Federation Program

The bill was drafted by the Special Legal Regimes thematic group of the competencies center of the Digital Economy program and after being approved by the work group it will be submitted to the Government of the Russian Federation.

"The proposed changes can, among other things, help expand the tax base by levying tax on high skilled professionals working abroad and often traveling around the world. The bill aims to levy the personal income tax on all the income of such individuals, new tax residents of the country, including their income earned outside of Russia and should thus boost the budget revenue from the personal income tax in Russia," Ms. Nikitina said.

In order to get the status of a tax resident, a skilled professional residing abroad will just have to submit a free form application to the Federal Taxation service. The experts in the group believe that the new tax regime will be in demand primarily among IT professionals and IT managers who spend most of their time living abroad.

Source: TASS

Photo: from open sources