Tax residency: why it matters more than citizenship
· beginner
Automated material · TradeAlmanac editorial deskDraft prepared by a language model from our stored data; not reviewed by an editor.
An individual's tax status is determined by time actually spent in the country over twelve months, not by citizenship.
What changes on losing residency
The rate. For a non-resident the basic Russian income tax rate is 30%, with a separate, lower rate on dividends from Russian companies.
Deductions. Most tax deductions are unavailable to a non-resident, including the IIA contribution deduction and long-term ownership relief.
What does not change
The right to own securities and to transact. Residency is a question of taxation, not of access.
The duty to notify
The broker applies the rate based on the information it holds. A change of status has to be reported: otherwise the withholding will be wrong and the difference has to be paid separately, sometimes with a penalty.
The practical conclusion
When planning a long absence, calculate the tax consequences before selling securities rather than after. Some decisions — realising gains under long-term ownership relief, for instance — only make sense while resident: Long-term ownership relief: paying no tax without arranging anything in advance.
The subject is complex and individual; only the general principle is described here. Related: Investor income tax: what is taxed and when it is withheld.
Sources
- https://www.consultant.ru/document/cons_doc_LAW_28165/
Draft prepared by a language model from our stored data; not reviewed by an editor.
Model: claude-opus-5
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