In Russia, the Federal Tax Service (FTS) has imposed a requirement for citizens working remotely in Kazakhstan to pay full income tax for the years 2022–2023. This has led to situations of double taxation — considering they had already paid taxes in Kazakhstan at rates ranging from 5 percent to 20 percent during these years.
According to tax officials, the work was carried out while physically present in Russia, and thus, income tax should be collected in Russia. Most surprisingly — they are disregarding the fact that the workers have already paid taxes in Kazakhstan and that a bilateral convention on double taxation exemption, which has been in effect between the two countries since 1996, exists.
Representatives of the FTS commented to the newspaper “Vedomosti” saying: if the work is performed abroad but the employee retains their residency status for tax purposes in Russia, then they must validate their business trip (deputation) with the appropriate documentation.
Experts believe that this situation is related to the popularity of remote work in Russia and the relocation of many Russians and companies to Kazakhstan following the invasion of Ukraine.
