Dentons' Russian Tax and Customs practice would like to remind you that less than one month remains to the deadline for filing 2014 tax returns. Individuals required to independently declare and pay personal income tax ("NDFL" or "Personal Income Tax") must file a 3-NDFL tax return form with their local tax authority by April 30, 2015. The tax payable according to the return must generally be paid on or before July 15, 2015.

What personal income must be declared?

The following types of income, among others, must be declared:

  • Income received in 2014 from sources in the Russian Federation, if (a) the personal income tax on such income was not withheld by tax agents, or (b) the income was received from entities that are not tax agents (e.g., from individuals and foreign companies);
  • Income from the sale in 2014 of property and property rights;
  • Income of Russian tax residents (persons who have spent at least 183 days in the Russian Federation during 12 consecutive months) received from sources outside the Russian Federation (e.g., from working abroad).

Examples:

  • dividends from foreign companies;
  • income from foreign companies under agreements for the performance of work/services;
  • income from the sale of participatory interests/shares in companies.

Individuals who are claiming tax deductions (e.g., property tax deductions from the sale and/or acquisition of property) should also file a return.

Dentons’ Russian Tax and Customs practice provides its clients with comprehensive support in filing 2014 tax returns:

  • Advice on an individual's responsibility to declare one or another type of income in the Russian Federation, and also on the application of the provisions of international treaties when determining the tax treatment for the income of an individual who is a resident of a foreign state;
  • Advice on the supporting documents that should be prepared for the declared income;
  • Assistance in completing and filing returns;
  • Follow-on support in the event of a desk tax audit of a filed return: preparing clarifications, communicating with the inspectorate;
  • Advice on eligibility for tax deductions, on supporting documents and how to complete a return with respect to deductions.