How can a non-resident become an individual entrepreneur?

The question, whether a non-resident can become an individual entrepreneur in Russia, is the most frequently asked in the sense that a non-resident is a person of foreign nationality. However, that is not entirely true when it comes to tax status.

Who is a non-resident

According to article 2 of the Tax Code of the Russian Federation, to get a non-resident status, it is necessary to remain on the territory of the Russian Federation less than 183 calendar days throughout the year. Thus, a tax non-resident may well be a Russian, who:
  • took up permanent residence abroad;
  • simply long traveled (it is quite popular in recent times course, which even won a fashionable name — downshifting);
  • working or studying in another country;
  • made numerous short-term business trips, as the calculated 183 days can be obtained in total.

It must be noted that the residents of the Russian Federation in any case are:

  • military who are serving abroad;
  • employees of government agencies who are in foreign business trips.

There are also foreigners with a special status:

  • citizen of another country working under a patent;
  • foreigner who is a highly qualified specialist;
  • non-resident who is a citizen of a member country of the Eurasian Union;
  • refugee;
  • member of the program for the resettlement to the Russian Federation of compatriots living abroad.

How to register an entrepreneurship

The fact that an individual entrepreneur can be a resident or a non-resident is fixed in the Federal law № 129. Namely, this normative document regulates all aspects of the business registration in Russia.

In accordance with the law, to a citizen of a foreign country become an individual entrepreneur in the Russian Federation, he needs to provide the following list of documents to the tax authority at the place of residence:

  • Passport of his country or other document, which is an identification document according to international standards;
  • Birth certificate;
  • Document that confirms a de facto residence of a foreigner in the territory of the Russian Federation;
  • Temporary or permanent residence permit in Russia;
  • Receipt or payment order for payment of state fee for the registration an individual entrepreneurship;
  • Document that indicates a lack of criminal record (is necessary if certain types of activities are desired);
  • Application for registration a physical person as a private entrepreneur in the form R21001.

In fact, registration of an individual entrepreneurship for non-resident foreigners is carried out similarly to the procedure established for citizens of the Russian Federation: simply for the latter, the list of documents is limited to an application, a copy of the passport and a receipt.

Anyway, the scheme of actions is following:

  • firstly, it is necessary to determine a direction, in which the future activities will be carried out: the legislation provides for a special classifier of OKVED codes, where it is necessary to choose several codes or one;
  • next, it is necessary to choose the tax regime. Falling this, there will be a common regime for the individual entrepreneur, which is characterized by a lot of taxes and reporting. The most popular among entrepreneurs is the simplified taxation treatment;
  • after addressing all organizational matters, it is necessary to take up of collecting documents and pay the state fee.

The registration authority is required to register an individual entrepreneur within a period of not more than 3 working days from the date of providing all the documents by the applicant.

Taxation for non-residents

The point of what taxes a non-resident individual entrepreneur pays is worthwhile clarifying. In general, the same as resident citizens of the Russian Federation, but there are nuances in the amount of personal income tax payment.

Income received by citizens of another country is taxed at a rate of 30 per cent; at the same time, residents must give only 13 per cent from their earnings. It should be noted that if a foreigner receives income in the form of dividends from equity participation, he needs to transfer to the state budget a tax, calculated at the rate of 15 per cent.

Also, it is necessary to take into account the following points:

  • foreigner, who has a special status (high-qualified specialist, refugee) and is a resident, pays 13 per cent income tax on any form of his earnings;
  • citizen of another country who has a special status, but is a non-resident, pays personal income tax to the state budget at the rate: 13 per cent — on labor income, 15 per cent — on dividends and 30 per cent — on all other types of earnings.
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