For employees of Russian companies who are tax residents of other countries, the increase in the cost of payroll fund in terms of corporate labor taxes will not differ from Russian residents. These are 15-30% social insurance and 20% VAT. Additionally, a tax resident of a country pays personal income tax according to the rules of the country of residence. For example, for residents of Azerbaijan personal income tax is 14-25%, Turkey - 15-40%, Thailand - 0-35%.
Thus, the savings on labor remuneration when using IT DataWare outstaffing, taking into account the submission of personal income tax form to the tax service of the Russian Federation (in accordance with СИДН — the agreement on avoidance of double taxation, for additional payment of the difference from 7.5% of paid personal income tax in Uzbekistan), will be from 24.5% to 43.5%, depending on the amount of the employee's salary (the smaller the salary, the greater the savings).
In case of using the programs of holding tax residency in Uzbekistan, which is offered by IT DataWare (+1% to the cost of outstaffing and conclusion of an educational services agreement with our partner in Tajikistan), the total savings can be from 31% to 48%, followed by payment for training services in the chosen specialty.
From 2024, labor income from Russian companies of non-resident Russians is taxed at 13/15%, regardless of tax residency status (in 2023 personal income tax from non-residents working remotely under labor contracts is 0%).
Thus, the savings on labor remuneration when using IT DataWare outstaffing, taking into account the submission of personal income tax form to the tax service of the Russian Federation (in accordance with СИДН — the agreement on avoidance of double taxation, for additional payment of the difference from 7.5% of paid personal income tax in Uzbekistan), will be from 24.5% to 43.5%, depending on the amount of the employee's salary (the smaller the salary, the greater the savings).
In case of using the programs of holding tax residency in Uzbekistan, which is offered by IT DataWare (+1% to the cost of outstaffing and conclusion of an educational services agreement with our partner in Tajikistan), the total savings can be from 31% to 48%, followed by payment for training services in the chosen specialty.
From 2024, labor income from Russian companies of non-resident Russians is taxed at 13/15%, regardless of tax residency status (in 2023 personal income tax from non-residents working remotely under labor contracts is 0%).
Other countries
In accordance with Russian legislation, under existing employment contracts, a Russian company pays social security contributions from 30% to 15% of the payroll depending on the size of the employee's salary and the size of the organization.
An employee who is a tax resident of the Russian Federation pays personal income tax at 13-15% of his income. The company acts as a tax agent for him, deducting the required amount from his monthly salary. In addition, the company cannot claim VAT credit for the payroll expenses, which include wages with personal income tax and insurance contributions, which increases the total labor costs for employees by another 20%.
The total value of additional labor costs ranges from 65% to 48% of their wages in hand.
An employee who is a tax resident of the Russian Federation pays personal income tax at 13-15% of his income. The company acts as a tax agent for him, deducting the required amount from his monthly salary. In addition, the company cannot claim VAT credit for the payroll expenses, which include wages with personal income tax and insurance contributions, which increases the total labor costs for employees by another 20%.
The total value of additional labor costs ranges from 65% to 48% of their wages in hand.
Russia
Consider a situation where an employee has a labor contract with a Russian comany and is a tax resident in Russia.
Comparison of labor cost savings using DataWare outstaffing on the example of Russia and other countries:
Benefits of outstaffing
Comparison of payroll tax rates for residents of different countries, employed by a russian company.
Comparison of payroll tax rates for residents of different countries, employed by IT DataWare.
All calculations are approximate. Exact calculations can only be made after receiving information about each employee's salary.
Starting from 2024, minimal labor cost savings when using IT DataWare outstaffing services for an employee of a russian company residing in a country where the personal income tax is less than in Russia (e.g. tax havens for digital nomads) will amount to 20% (value added tax in Russia) +15% (minimum social insurance in Russia) +13% (minimum personal income tax in Russia) -16% (outstaffing costs, which include personal income tax in Republic of Uzbekistan 7.5%) = savings on wages of at least 24% of the wage bill.
Amount of saving
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