STRATEGIC ASSESSMENT. Russian authorities are preparing to introduce a higher tax rate for citizens who work outside the country.
A draft law submitted to the State Duma on Monday obliges companies to levy a 30% personal income tax on payments to Russians who have lived abroad for more than six months and have lost their tax residency status.
If adopted, the amendments will reportedly come into effect from January 1, 2024, and will apply to employees who use the Russian segment of the internet for work.
Russia’s current personal income tax rate of 13% is deducted automatically by domestic employers. Russians working abroad who are tax residents must pay the tax independently, according to the Federal Tax Service.
In 2021, Russia implemented a progressive tax system with a basic rate of 13%, rising to 15% for those earning over 5 million rubles ($61,500) per year. Non-residents pay 13%, 15%, or 30%, depending on their employment status and the source of their income.
Meanwhile, the US dollar has only five years left as the principal currency for the global economy, according to Russian billionaire Oleg Deripaska. He claims the greenback’s superiority has for way too long been used as a weapon of vengeance against all dissenters, and often without prior legal evaluation.
Seven years ago, the absolute dominance of the greenback in global settlements and financial transactions seemed unshakable, the founder of aluminum giant Rusal wrote in a Telegram post on Saturday.
Deripaska expects global settlements to become more diversified and for digital currencies to become more “compatible.”
“That will be hard at the beginning, but then the world will discover a new reality without a [need for] a hegemon,” he said.
