Tax Identification Number (INN) in Russia
In Russia, the Tax Identification Number (INN) is a crucial element for both residents and non-residents involved in various legal, financial, and business activities. Whether you are an employee, self-employed, a business owner, or someone planning to conduct any type of financial transaction in the country, obtaining an INN is a necessary step.
This article explains what the INN is, why you need one, and how to obtain it in Russia. We will also cover the different situations in which an INN is required, and its importance for both individuals and businesses.
What is the Tax Identification Number (INN)?
The INN (Идентификационный номер налогоплательщика), also known as the Taxpayer Identification Number, is a unique number assigned to individuals and entities in Russia for tax and financial purposes. The INN is issued by the Federal Tax Service (FTS) and is used to track tax payments and obligations, ensuring that individuals and companies comply with Russian tax laws.
Key Features of the INN:
- The INN is unique to each individual or entity.
- It is used for a wide range of legal, financial, and administrative tasks in Russia, such as paying taxes, conducting business, or opening a bank account.
- The INN is assigned once and does not change throughout an individual’s or entity’s life, unless there is a legal change in status (e.g., name change or business reorganization).
Why You Need an INN in Russia
The INN serves as a fundamental identification number for tax and financial matters in Russia. Here are some of the primary reasons why you need an INN:
1. Tax Obligations
The primary purpose of the INN is to allow the Russian tax authorities to track tax obligations and payments. Whether you are working as an employee, self-employed, or running a business, you will need an INN to:
- File tax returns: If you are earning income in Russia, you need an INN to file your taxes.
- Pay taxes: The INN is required for making payments to the Russian tax authorities, including personal income tax, business taxes, and social insurance contributions.
2. Employment
For foreign nationals working in Russia, an INN is essential for:
- Employment contracts: Employers typically require employees to have an INN before finalizing the employment contract.
- Salary payments and tax withholding: Employers use the INN to report income and withhold tax on your salary. Without an INN, you may not be able to legally work or receive salary payments.
- Social insurance and pension contributions: The INN is also linked to your social insurance and pension contributions, allowing you to build your social security record in Russia.
3. Opening a Bank Account
You will need an INN to open a bank account in Russia, whether you are an individual or a business. This is a standard requirement for both personal and corporate banking, as banks use the INN to verify your identity and track financial transactions. Some banks may allow you to open a basic account without an INN, but it will be required for fully functional accounts, including those that allow you to make international transfers, apply for loans, or use certain banking services.
4. Real Estate Transactions
If you plan to buy property in Russia, you will need an INN for the following purposes:
- Property registration: The INN is used in the registration process for both the buyer and the seller of real estate.
- Payment of property taxes: You will need an INN to pay taxes associated with owning property in Russia, such as property tax, which is a mandatory payment for property owners.
5. Business and Entrepreneurship
If you are a business owner or self-employed in Russia, the INN is necessary for:
- Registering a business: You will need an INN to register your company with the Russian tax authorities. This includes registering for value-added tax (VAT) if your business is eligible, as well as other business taxes.
- Issuing invoices: The INN is often required when issuing invoices and contracts for business transactions.
- Employing others: If you hire employees, you will need an INN to set up payroll and ensure compliance with Russian employment and tax laws.
6. Inheritance and Legal Transactions
The INN is also used in cases involving inheritance or other legal matters:
- Inheritance procedures: If you inherit assets or property in Russia, you will be required to provide your INN when dealing with the inheritance process, as well as to pay any related taxes.
- Legal identification: The INN is used as an official form of identification in legal matters, including contracts, lawsuits, or dealings with Russian authorities.
How to Obtain an INN in Russia
Getting an INN in Russia is a relatively simple process. Here’s how to obtain one:
1. For Russian Citizens
Russian citizens automatically receive an INN when they are registered in the country. If you are a Russian citizen, you can obtain your INN by:
- Visiting the Federal Tax Service (FTS) office: You can apply in person at any local tax office (FNS). You will need to bring your passport and, in some cases, your domestic registration certificate.
- Online Application: It is also possible to apply for an INN online through the FNS website or through the State Services Portal (Gosuslugi), though some cases might require in-person submission for verification.
2. For Foreign Nationals
Foreign nationals who are planning to live, work, or do business in Russia need to apply for an INN, especially if they intend to pay taxes or open a bank account. The process involves the following steps:
- Visit the Federal Tax Service (FNS): Foreign nationals must go to the local tax office and submit a passport, a migration card (which shows your entry into Russia), and a residence permit (if applicable).
- Online Application: In some cases, it is possible to apply online through the FNS website or Gosuslugi portal, but some foreign nationals may need to apply in person, especially if they don’t have a permanent address in Russia.
- Processing Time: The application for an INN is typically processed quickly, and you should receive your INN within a few business days to a week.
3. For Non-Residents and Temporary Residents
Even if you are not a permanent resident of Russia, you may still need an INN for certain activities, such as engaging in business transactions, renting a property, or opening a bank account. The process is similar to that for other foreign nationals, though there may be additional requirements, such as proof of temporary registration in Russia.
What Happens If You Don’t Have an INN?
Not having an INN in Russia can lead to difficulties in conducting everyday activities such as:
- Employment: Without an INN, you will not be able to work legally in Russia.
- Banking: You won’t be able to open a full bank account or perform significant financial transactions.
- Taxes: You will face issues when filing tax returns or paying taxes, as the INN is used to track your tax obligations.
- Legal Transactions: The INN is required for various legal procedures, including property transactions and the execution of contracts.
Conclusion
The Tax Identification Number (INN) is a key element of the Russian legal and financial system, and securing one is a vital step for foreign nationals planning to live, work, or do business in Russia. It is required for everything from employment and banking to property transactions and tax payments.
Whether you are an expat looking to work in Russia, open a business, or simply engage in everyday financial transactions, having an INN is essential. The process of obtaining it is relatively simple, and it opens the door to various legal and financial opportunities within the country.
If you plan to stay in Russia long-term, make sure to apply for your INN early to avoid any delays or complications with your work or legal status.