Expats In Russia Can Now Submit Their Own Tax Returns

by Tatiana Smolensky, Tax-news.com, Moscow

06 June 2001

Expatriates paying tax in Russia face changes in the assessment procedure, it was revealed recently. In a letter dated 30th May, Tax Inspectorate No. 38, the branch of the Russian tax inspectorate which handles foreigners' income tax, announced that foreign expatriates must now pay their income tax by July 15th based on their own tax declarations.

Previously, foreign citizens were obliged to wait until their returns had been assessed by Tax Inspectorate No. 38, and were given a month to pay the amount that was established to be due. Despite the fact that some expats have already received assessments for the previous tax year, experts advise action, rather than adopting a 'wait and see' attitude. Tim Carty of Arthur Anderson advises expatriate taxpayers: 'Don't sit around waiting for an assessment, but don't be surprised if you get one as well.'

Although Russian tax experts believe that most people will want to pay their income tax by the July 15th deadline, if only for a quiet life, the new tax code is somewhat ambiguous on the point of whether tax assessments are mandatory, meaning that those who want to argue the point could find grounds for their decision.

However, those who would normally seek solace in a calming tipple are out of luck- the country's vodka industry has ground to a halt following a foul-up in the excise tax system. A recently passed law requires Russian produced wines and spirits to carry regional as well as federal excise stamps, without which producers are not permitted to deliver them. Which would be fine, were it not for the fact that neither the regional stamps, nor the equipment necessary to attatch them to the bottles has not yet been made!

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