According to the Federal law No. 212-FZ dated 24 July 2009, the Russian Unified Social Tax has been replaced by social contributions to several state funds as from 1 January 2010.
For 2010, the amount of social contributions payable is 26% of salary up to RUB 415,000 gross annual salary. No social contributions are payable on any part of the salary over that amount. This rate of 26% will be increased to 34% in 2011.
One of the most striking provisions of the law is that social contributions (except for accidents at work and work-related illness) are no longer payable on remuneration to foreigners temporarily qualified as non-resident for immigration purposes (i.e. foreign citizens living in Russia on the basis of a visa).
In other words, all salaries, bonuses, premiums and indemnities received by foreign employees who do not have a Russian residence permit (вид на жительство) or a temporary residence permit (разрешение на временное проживание) are exempted from social contributions (except for accidents at work and work-related illness).
For a full version of the Alert, please see a PDF file.
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