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Foreign Workers will be Registered with the Tax Service

April 2013

INN

The Government of the Russian Federation increases control over foreign man power. From now on this task as well falls within the competence of the Tax Servicewhich is nowcommissioned to issue taxpayer identification numbers (INN) to foreign workers based on the data received from the Federal Migration Service. Therefore receiving working permit for a foreigner in the Russian Federation will at the same time mean be registered with the Tax Service.

Such bill has been submitted to the lower house of the parliament. As stated in the explanatory note to the bill, the foreign worker’s taxpayer identification number will allow identifying the payments made under the personal income tax. This will consequently provide transparency of a foreign worker’s financial information before the state, i.e. it will be no trouble to track the place of work, the working period and the amount of salary of the foreign worker, whereas taxpayer identification number will be indicated throughout every tax report. Contribution of such foreign worker to the Russian budget will be shown respectively, which will furtherallow the employers to substantiate their need inworking permit extension and allow foreign workers applying for a residence permit.

The bill also provides for automatic issuance of taxpayer identification numberusing the system of document work flow between the state authorities (in this case between the Migration Service and Tax Service). This has to relieve the business from preparation of additional documents in order to register foreign workers with the tax authorities.

Alexey Kraynev,
Tax lawyer
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