Features of payment and personal income tax return for foreign citizens
The article was prepared by Svetlana Grishchenko, Supervisor of the migration and visa department of Confidence Group
Paying an advance payment for a patent issued to a foreign citizen - it seemed that could be easier! However, the issues associated with this process are more than enough.
After applying for a patent, you must wait for the SMS, which will inform you about the readiness or independently check the status of the application on the site "Electronic Services". Then a patent is issued to a foreign citizen for a period of one to twelve months and can be repeatedly extended by paying a personal income tax (hereinafter - PIT) for a period of one month. Moreover, a foreign citizen has the right to renew a patent of his choice: you can pay PIT for several (up to 12) months at once or make monthly payments.
You can form a receipt and pay PIT for a patent online in the "Electronic Services" section on the MC.MOS.RU website or in the personal account of a foreign citizen (if the patent is issued for work in Moscow) or on the website of the Federal Tax Service of Russia "Payment of taxes of individuals".
If a foreign citizen didn’t make the payment on his own, but, for example, the employer paid for it, information about the period for which PIT is paid can be checked on the website in “Electronic Services section” or contact zone "A" of the “Migration Center” in Sakharovo in person to verify the accuracy of payments.
The deadline for payment for the patent is the last day of the period for which PIT is paid as fixed prepayment; it is calculated on the basis of the date of issue of the patent, which is indicated on the reverse side. Regardless of when the first payment was made, the next payment must be made no later than the date of issue of the patent indicated on the reverse side, i.e. PIT should be paid exactly in the allotted time.
Now let us consider the nuances that arise when paying PIT.
To begin with, it is worth noting that PIT is paid by the taxpayer at the place of his labor activity on the basis of the issued patent before the start of the period for which it is issued (extended), reissued. Thus, a foreign citizen first pays the advance payment, and only then receives a patent and begins to carry out labor activities, which he could not proceed without a patent. Therefore, a foreign citizen pays PIT without performing labor activities.
After the conclusion of a labor contract with a foreign citizen, employer also pays for the employee's PIT at a rate of 13% - and it turns out that both the employee and the employer pay the tax. However, the legislation provided for a reduction in the calculated tax amount. The reduction is made during the tax period by the amount of fixed advance payments paid by the taxpayer, which is carried out on the basis of a written statement of a foreign citizen and documents confirming payment of fixed advance payments.
In practice, it is quite difficult to return the money and the main reason is the lack of notifications in the databases of the Ministry of Internal Affairs on the conclusion of a labor contract / information on the provision of a copy of the labor contract with a foreign citizen.
For those who nevertheless decide to undergo complicated procedure for returning PIT we recommend to conduct an annual procedure of hire and dismissal of a foreign citizen with subsequent notification of the territorial bodies of the Ministry of Interior on the conclusion or termination of labor contract, as well as providing a copy of the labor contract with a foreign citizen. Moreover, to perform all these actions, you must contact the Ministry of Internal Affairs with all the necessary documents in person, and not send documents by post.
Obviously, these actions are not entirely correct from the point of view of labor legislation, especially despite the fact that most employment contracts with foreign citizens are unlimited, but in another way, it is often technically impossible to comply with all the requirements of the competent authorities for the return of overpaid personal income tax.
In addition, there are cases where payment has been delayed, at least 1 day. This can happen with late payment, and with incorrectly specified details, including the TIN of a foreign citizen. In the late case, the Inspection of Federal tax Service may incorrectly enter information about the payment and, accordingly, the payment will be overdue ("not counted").
115-Federal Law of July 25, 2002 “On the Legal Status of Foreign Citizens in the Russian Federation” provides that “The validity of a patent is considered extended for the period for which the personal income tax is paid in the form of a fixed advance payment. Otherwise, the patent expires from the day following the last day of the period for which PIT is paid in the form of a fixed advance payment.”
With all this, referring to the Multifunctional Migration Center of Moscow website, when such a situation arises, we see recommendations that a foreign citizen should make a payment for the debt for a patent as soon as possible and it seems that nothing will happen. We would like to warn you against the trust of such information and recommend making monthly fixed advance payment for a patent in advance, preferably 3-4 days before the date of issue of a patent for a work. If, nevertheless, the payment was overdue, it is necessary to suspend the foreign citizen from work until he receives a new patent, but not more than 1 month. If the patent would not be received, it is necessary to dismiss the employee and submit appropriate notification.
There are cases that document, which confirms the payment of fixed advance payment for the patent was lost/damaged – then we recommend you contact the bank where the payment was made to obtain confirmation of payment of PIT for the patent. To receive confirmation, you must have copies of payment documents.
The advanced payment for PIT extends the patent, what automatically extends the permitted length of stay of a foreign citizen after the regular payment of PIT. In case if at the time of payment the foreign citizen has already made migration registration, the host has a duty to update migration registration (renew for a new permitted stay). Unfortunately, many still do not know about this - and this despite the fact that this must be done within 3 business days after payment. Otherwise, the penalties provided. In other words, if a foreign citizen pays for the patent for 1 month, then he will need to extend the migration registration for the patent also by 1 month. And a month later, everything is over again: first, paying a fixed advance payment of PIT for a patent for the next period, then immediately after paying a patent - extending migration registration for a new allowed period of stay.
As you can see, a lot of time is spent on this procedure, therefore, we recommend making a fixed advance payment of PIT for a patent for a period of more than 1 month, while the maximum payment term for a fixed advance payment for a patent is 12 months from the date of issue.
In the case of payment of PIT for a patent for a maximum period - 12 months, with an increase in the PIT rate next year, there is no need to pay extra.
Thus, we would like to draw your attention to the fact that making an advance payment is a simple procedure, but having its own nuances. If you do not take into account these nuances, they will significantly complicate your stay and employment in the Russian Federation.
