Doing Business in Russia
Doing Business in Russia 23
In a separate process, but based on
the work permit, a work visa must be
obtained. Its procurement also involves
several stages in which a specified set
of documents must be submitted to
the immigration authorities.
It should be noted regarding work
permits that each year, by 15 July,
companies must report the number
of foreign employees they anticipate
to engage in the next calendar
year.
This procedure effectively constitutes
a quota application system. If the
employer does not comply with this
and does not receive notification that
they have an approved quota, the
employer will have any work permit
applications rejected. A company
that fails to file a quota application
or whose application was denied or
partially approved has the right to use
a list of quota-exempt positions when
applying for a work permit, but only if
the application meets all of the quota
exemption requirements.
Work permit applications for Highly
Qualified Specialists (HQS)
Since 1 July 2010, a simplified
procedure for obtaining Individual
Permits for HQS has been in force. A
HQS is a highly-skilled professional
who is a foreign employee and who
has work experience and skills or
achievements in a certain area and
whose annual salary is generally not
less than RUB 2,000,000.
Obtaining Individual Permits for foreign
nationals to work as HQS has the
following benefits:
-
The Russian employer does not
need to obtain a Corporate Permit;
The quota system does not apply to
HQS professionals;
The Individual Permit can be issued
for a term of up to three years;
A HQS professional has the right to
obtain multiple work visas for a term
of up to three years;
The procedure to obtain an Individual
Permit for HQS professionals takes
about fourteen business days from
the moment a complete package of
documents is submitted;
-
An income tax rate of 13% applies
to the salary paid to an HQS under
their relevant employment contract,
irrespective of their tax residence
status in Russia;
Extended stays for business trips
outside the region / regions for
which the HQS Individual Permit
was obtained are allowed, as
compared to the standard Individual
Permit.
Migration registration procedure
Migration registration is the process of
notifying the immigration authorities
of a foreign citizen's whereabouts
(international travel, as well as internal
trips within Russia). It is the hosting
party which is responsible for carrying
out registration. The hosting party is
either the hotel or the employer (visa
sponsor), or a landlord if the foreign
national is not staying in a hotel.
Upon arrival in Russia, each
foreign national must be
registered in Russia at their
host location.
This process should be completed
within seven business days of arrival
every time a foreign national arrives
in Russia or travels to another region
(changes location) within Russia for
more than seven business days.
HQS professionals and their family
members are exempt from registration
procedures if they arrive and stay
in Russia for a period that does not
exceed 90 days, and are exempt for
30 days if they travel to another region
in Russia. If HQS professionals and
their family members stay in Russia
for more than 90 days (or 30 days if
traveling to another region), they are
required to be registered with the
immigration authorities.
©2016 KPMG. All rights reserved.View entire presentation