Relocates who moved to the Emirates and work for Russian companies will pay taxes in their home country

Starting next year, a double taxation agreement with the UAE will come into effect. And this is the first international agreement where remote work is given a whole clause and how taxes will be levied in such a case is clearly spelled out

Russian relocators who have moved to the Emirates and are working for Russian companies will pay taxes in their home country. The agreement on avoiding double taxation with the UAE will come into force in 2026. And this is the first international agreement where a whole clause is devoted to remote work and it is clearly stated how taxes will be levied in such a case. This will be recognized as work for hire in the state of which the employer or customer is a resident. Moreover, it does not matter where the employee or contractor was physically located.

Since 2024, according to the Tax Code of the Russian Federation, the salary of remote workers is considered income from sources in the Russian Federation. Currently, the rate is from 13% to 22%. What has changed with the signing of the agreement between Moscow and the Emirates? Nikolai Rudomanov, a lawyer and partner at the law firm Nekrasov, Rudomanov and Partners, explains:

Nikolay Rudomanov , lawyer, partner of the law firm "Nekrasov, Rudomanov and Partners"

The agreement on avoidance of double taxation introduces reduced rates on dividends, interest and royalties, allows individuals to offset taxes paid in another country and makes all transactions transparent due to mutual exchange of information. According to Finance Minister Anton Siluanov, "this will help stimulate trade, increase mutual investments, and create a favorable environment for business and citizens."