Payroll and HR in Russia

Local Information

Local Time (Moscow) (LIVE):4:16 PM
Local Currency:$1 = ₽64.65
Business Language(s):Russian
Tax Year Dates:1st January – 31st December

 

Despite making controversial headlines and receiving US and EU sanctions, Russia still presents a number of unique opportunities for international expansion.

For starters, Russia offers new investment programmes and openly encourages foreign investment. With recent developments in their transport and infrastructure, Russia now also offers improved logistical efficiency for doing business. Add into the mix Russian middle-class consumers’ strong receptiveness to brands – particularly luxury goods, food and drink – and you could find your perfect market.

Though worthwhile, we know expanding your business is a complex and stressful process. That’s why we are here to help with your global payroll and HR. We’ll help streamline the expansion process and make sure your business maintains compliance. Get in touch today.

Ready for International Expansion?

Sending, please wait...

Please verify you are human.


Employer Must-Dos

In Russia, the following reports must be submitted to strict deadlines:

  • Tax Declaration (Nalogovaya Declaratsia)
  • Form P-4

Payroll in Russia

What tax considerations are there?

The tax system in Russia uses modest regressive tax or flat rates. Non-residents pay more income tax than residents (residents pay around half as much as non-residents). For the first 183 days, non-residents are taxed at a rate of 30%.

Corporate tax is currently charged at a flat rate of 20%, and for dividend profits, Russian companies currently pay 9% and international companies pay 15%.
International companies with no tax treaty agreement are taxed on royalties and interests.

HR in Russia

What are the regular working hours in Russia?

The standard working week is 40 hours long in Russia. Due to overtime laws in place, this rarely goes above 50 hours. Working hours are usually between 9am-5pm or 10am – 6pm.

Termination

Following Russian employment law, an employee may have their employment terminated if there is a mutual agreement, it follows employee’s or employer’s initiative, their fixed term contract has expired or it is based on grounds covered in Article 77 of the Labor Code.

Read more about International Payroll

We’ve covered the key considerations and challenges of international payroll and HR. Download our international payroll guide today.

Download Our Guide

FMP’s Russian Payroll and HR Solutions

No matter if you’re looking for payroll and HR in Moscow, Saint Petersburg or Kazan, our global payroll and HR experts are here to help. We’ll give you the guidance and management you need to keep your payroll and HR processes running smoothly, making sure you remain compliant with Russian employment law. Our services include:

  • Employment Contracts
  • Payroll Processing
  • Handling of payments (salaries)
  • Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
  • Relations with social bodies
  • Regulatory Compliance
  • Tax and Labor Law Consulting
  • Assisting in payroll audit (or payroll department audit)
  • Handling of confidential payroll
  • Assistance in company restructuring plan
  • Assistance in implementation of procedures
  • Assistance with start-up (in link with lawyers)

Maintain Compliance with Your Russian Payroll & HR

Get in touch with FMP Global today and let us take the pain out of international payroll and HR. We’re experts in Russian payroll and HR compliance, legislation and employment law. We’ll deal with the complexities, allowing you to get on with the important stuff.

Start your International Expansion Today