A resident is an individual or legal entity that is registered with state bodies at the place of residence, location and on the basis of this undertakes to comply with the requirements of the current legislation. A non-resident is also an individual or legal entity that performs certain actions on the territory of the state, but is responsible for the committed acts under the laws of another state that it has chosen as its place of permanent residence. Organizations that operate on the territory of the Russian Federation, but are subject to the legislation of a foreign state, also have such a status. These organizations, as a rule, include branches of foreign firms and international representations.
Conditions
Legal entities and individuals become residents and non-residents in the process of fulfilling certain conditions by them:
- presence in the country for some time;
- regular stay in the country (without leaving or with short trips);
- acquisition of a document that provides the right to live and work in the territory of a foreign state (student, work visa, residence permit);
- fulfillment of other points specified in the legislation.
The concepts of "resident" and "non-resident" are present in the legislation of the bulk of the states of the world, because the ability to distinguish them and use them for their own benefit will substantially brighten up a person’s stay in the territory of another state. The same applies to citizens who do not own information about the legislative acts of their own country and therefore often find themselves in unpleasant situations due to tax evasion, inability to carry out the necessary procedure at the bank, etc.
The legislative framework
In order to fully understand the essence of the concepts under consideration - “resident” and “non-resident”, a thorough study of the tax and currency legislation of the Russian Federation is necessary. To determine the aforementioned status, the following legislative acts are used:
- The tax code of the Russian Federation.
- No. 173- On Currency Regulation and Currency Control.
It should be noted that the meaning of the concepts “resident” and “non-resident” in the Tax Code of the Russian Federation and in other normative acts is determined in accordance with modern law. With this in mind, before attempting to obtain one of these statuses, it is necessary to determine the area in which it is planned to carry out certain actions. Money transfers, currency exchange, opening a bank account (deposit) - this is all a reference to the currency legislation. And for example, payment of taxes on property and income and obtaining on the basis of this more preferential status is in the purview of the Tax Code.
Currency legislation
We define the concepts of "resident" and "non-resident" for the bank. On the basis of No. 173-FZ, currency residents are considered:
- all Russian citizens, with the exception of those who have lived in a foreign country for more than 1 year, and the absence or presence of a visa does not matter;
- stateless persons, as well as foreign citizens, subject to their intention to permanently reside in the territory of the Russian Federation (these citizens are issued a residence permit).
All citizens who do not belong to the above categories are non-residents.
A number of citizens who do not face the need to open an account with a bank, perform certain currency transactions that are related to the exchange of money, sending or receiving money transfers, as well as other banking services in the field of currency, may not attach particular importance to the importance of this definition.
Currency Operations
For a more complete understanding of residents and non-residents in Russia, it should be noted that there are various conditions for the implementation of the above currency transactions. For example, a resident has the right to transfer currency values, bequeath, give them, alienate and acquire collectible banknotes, as well as open accounts in foreign currency at any bank. At the same time, non-residents do not have such rights, and all accounts opened by them are managed by one or more banking organizations. This rule also applies to the transfer of foreign currencies. Funds can be transferred from one account to another, which is opened only at an authorized financial institution.
Tax law
In order to define the concept of tax “resident” and “non-resident”, their position and status in the field of tax legislation, Art. 207 of the Tax Code of the Russian Federation. In accordance with this legislative act, the status of a resident of the Russian Federation in the field of taxation is granted:
- citizens of the Russian Federation, stateless persons and foreigners, subject to their permanent presence on Russian territory annually for 183 days (6-month breaks are also allowed during the period of residence when traveling outside the state for recreation, education or treatment);
- civil servants, military servants, employees of local government organizations, located in the territory of foreign states in the form of business travelers (the period of stay in another state in terms of tax legislation is not considered an excuse for losing these people the status of residents of the Russian Federation).
Non-residents
Citizens who live in Russian territory less than 6 months a year (non-residents) do not have this status. They must pay more taxes at high interest rates. It should also be noted that people who are outside of Russia longer than the specified period when they perform the duties of a representative of a trading company also fall under this definition. For example, the income tax of residents is 13%. The same tax that is levied on non-residents increases to 30% of the total income. Thus, citizens who use the territory of the Russian Federation to find work and who have been living here for less than 6 months work in less favorable conditions than foreigners who managed to get the status in question. At the same time, in order to obtain such a status, a foreigner is enough to have a student visa or a regular work visa for a period of at least 1 year.
It is enough for Russian citizens to simply stay in the country for the period specified in the legislation. To calculate such a period of time, you can use the marks in the passport affixed by the Russian border service when traveling abroad. An explanation of the concepts of “resident” and “non-resident” for taxation was given above.
Differences
Currency and tax legislation are completely different legal branches that use two fundamentally different concepts of the terms “non-resident” and “resident”. The concepts of “resident” and “non-resident” in the Tax Code are more fully represented. Thus, the document notes that the status of a tax resident and citizenship are in no way interconnected. Russian citizens may not be tax residents, and, conversely, foreigners may be them. This regulatory document clearly stipulates the periods of stay of people in Russia, which allows them to achieve resident status. Ultimately, there is a situation in which Russian citizens living in the country less than 183 days specified in the law pay tax at a rate of 30% of the total income, while foreigners who live more than six months pay only 13%.
In currency legislation
The concepts of "resident" and "non-resident" in the currency legislation are somewhat different. So, it grants resident status to all Russian citizens. An exception are citizens who have been permanently living in the territory of another state for 1 year and who have received a residence permit, student or work visa. In addition, this status can be acquired by foreign citizens and people who do not have citizenship, with their permanent residence in the country, taking into account the provision of such citizens with a residence permit. The remaining categories of persons that do not belong to the mentioned points are not residents and acquire the status of “non-resident” in currency transactions.
In the Republic of Belarus
Often ask a question about the concepts of "resident" and "non-resident" in Belarus. The legal regulation and distribution of income tax in the Republic of Belarus involves determining the obligation to pay it based on the criteria for residency: there are significant differences in the taxation of non-residents and residents. A resident in this state in accordance with the laws of this country in the field of taxes and fees is an individual who is actually on its territory for longer than 183 days during the year. The object of income taxation for tax residents is recognized as income received by payers both directly from sources of the Republic of Belarus and from other sources outside this state. Non-residents must pay income tax solely with respect to income received from state sources.
Nevertheless, payers who were not recognized as tax residents of this country, upon receipt of income for goods (services, works) sold, are required to submit to the tax authority at the place of their alleged income the necessary calculations and tax returns, on the basis of which they will be calculated amount of income tax at an interest rate of 12%.
If income ceases
If the receipt of income ceases, the tax authorities will recalculate the income tax based on the income actually received by the taxpayers, taking into account the amounts previously paid by them. It seems that such an approach, which provides for the payment of advance payments before the sale of goods or other property, does not fully help economic relations develop. When switching to a single rate scale of 12% in the state, the same fiscal conditions were created for non-residents and residents, as well as in the Russian Federation.
In the article we described in detail the concepts of "currency", "resident" and "non-resident", we examined their main features.