A resident of the Russian Federation is an individual or legal entity that is registered in Russia and is fully subject to its national legislation. This term is mainly used in tax and financial legal relations.
In some states, foreign citizens or organizations that have all the rights and obligations in the country of their operation or residence are accepted as residents.
A resident of the Russian Federation is:
- Individuals are citizens of Russia. The exception is those citizens of the Russian Federation who are recognized as permanently residing in another foreign state in accordance with the current legislation of the latter.
- Foreign citizens or stateless persons who live permanently in Russia in accordance with a residence permit, which is provided for by the legislation of the Russian Federation.
- Legal entities that are created in accordance with the legislation of the Russian Federation.
- Branches established on the basis of the legislation of the Russian Federation, as well as representative offices of legal entities, while located outside the Russian territory
- Consular offices and diplomatic missions of the Russian Federation, as well as other official Russian missions that are located outside its borders. Permanent missions of the Russian Federation to intergovernmental and interstate organizations may also be included here.
As mentioned above, the concept under consideration is most used in tax relations. Therefore, we will try to figure out who the RF resident is, how the taxation procedure for his income differs from that for those who do not have this status.
Basically, there is an opinion that a person with Russian citizenship is already a resident of it. However, it is not. The corresponding status is assigned only on the basis of the terms of stay of this citizen in the Russian territory.
So, a resident of the Russian Federation is a citizen of Russia, or maybe a citizen of another state, who has been on Russian territory for more than 183 days for the next 12 months (calendar). It should be noted that Russian presence is not interrupted if trips abroad were short-term (up to six months) for the purpose of training or treatment. Otherwise, this citizen is a non-resident.
As with any rule, there are exceptions. Regardless of the length of stay in the territory, a resident of the Russian Federation can be represented by the following categories of citizens:
- Russian military personnel serving in foreign countries;
- civil servants who are on business trips outside the Russian territory.
But to persons who are employees of trade missions or consulates, their status is determined in the general manner.
A resident of the Russian Federation is subject to standard taxation adopted in accordance with applicable law. The determination of the tax base for which taxes are levied, as well as the established tax rates allow the taxpayer to take advantage of certain social, standard and some property deductions.