Sole traders will pay income tax for foreign companies
UFA, 13 January 2020. /Bashinform News Agency, Rozaliya Valeeva/ translated by Tatiana Aksyutina/.
Starting from January 1, 2020, sole traders are recognized as tax agents for corporate income tax received by a foreign organization from sources in the Russian Federation, the press service of the Federal Tax Service reports. Earlier, if a foreign organization not operating in Russia received income here, income tax for it was paid by a Russian organization paying this income or a foreign organization with a permanent representative office.
Now, sole traders have been added to the list of tax agents for corporate income tax for foreign companies.
When a foreign organization pays income received in the Russian Federation, sole traders are obliged to calculate, withhold and pay income tax, as well as provide the tax authority with information about the income and tax withheld to foreign organizations.