Russian bloggers on YouTube and Instagram will be required to pay personal income tax (PIT). Those of them who work from abroad will pay at a rate of 30%.
This follows from the amendments to the Tax Code (TC), which were prepared by the government, Vedomosti writes, citing a source familiar with the preparation of the changes, as well as an interlocutor close to the government.
Who will pay the tax
The bill amending Art. 208 of the Tax Code (income from sources in the Russian Federation and income from sources outside of it) the Cabinet introduced to the State Duma on April 24. According to the document, if Russian domains, network addresses or servers were used in the performance of work, then the income from such activities will be subject to income tax in Russia.
However, this requires one or more conditions to be met: an individual must be a tax resident of Russia, income must be transferred to an account in a Russian bank, or the source of payment must be a Russian organization or individual entrepreneur.
This will expand the scope of income that will be considered received in Russia, the source explained. So, for example, according to the current legislation, if a web designer from abroad completed an order for a Russian company. He does not pay tax, since it is considered that he received income not in Russia. Explained Sergey Kalinin, head of the tax practice of the EPAM law office. Now the Russian segment of the Internet. In terms of income received, will be equated to the territory of Russia, the expert specified.
Type of groups that effected by this policy
The “loophole” for bloggers on YouTube and Instagram, who use the foreign segment of the Internet. Therefore do not have to pay taxes, will also be closed, the source assures. After the approval of the amendments to the Tax Code, citizens who post content on foreign sites. But receive remuneration from Russia, will also be subject to Russian tax legislation.
This principle is already included in the current version of the bill. But it is planned to amend it and articulate this provision more clearly, said a source close to the government.
The authorities planned to impose income tax on bloggers who work on foreign sites back in 2021. But then the platforms themselves were going to become tax agents – YouTube, Instagram, etc. In this case, they could be obliged to pay “tax for Russian bloggers from income. From blog advertising” to the Russian budget.