Handling your taxes in any country is bewildering and mind-numbing, and learning about Russian tax law is no easier. It doesn’t take a big mistake to end up paying a higher rate, and even natives can get things wrong on their returns. Russian umbrella companies have a comprehensive knowledge of the tax system, and can ensure you make all of your required payments. Not only do they deal with the tedious paperwork, they also know enough about the system to help you keep more of your money. Some can also help you with tax obligations in your home country. Contracting in Russia through an umbrella company requires very little paperwork; you submit your invoice and get a tax receipt in return.
An Russia umbrella company protects you from the administrative implications of being an independent contractor. Instead of being responsible for your own taxes, you become an “employee” of the umbrella company, who pays them for you as you earn. Although you’re technically an employee of the company, in reality you still act as a contractor. With umbrella employment you get the benefits of knowing all your tax and administration is handled professionally, but you aren’t tied down to one client. You just work, invoice the umbrella company for your hours and then they’ll collect the payment, siphon off taxes and pass the rest on to you.
It’s also much easier to get your Russia work permit through an umbrella company. The problem for contractors is that you need an employer to “sponsor” you for the duration of your stay. Typically the end client can only sponsor permanent employees who are on their payroll. If you’re considering working on several different contracts in Russia, finding sponsorship is especially difficult. Each employer you’re working for might only want to sponsor you for the duration of your contract with their company, which makes it difficult to cover your entire stay. By acting as your permanent employer, an Russia umbrella company subverts this problem and sponsors you for as long as you like.
We can help you find a suitable Russia umbrella company if you think they could help you out. Oil and gas workers, IT project managers, business analysts and telecommunications contractors looking to work abroad massively benefit from using one, even if it’s just from the sizable reduction in admin. We work closely with many different Russia umbrella companies, and have a thorough knowledge of the services they provide. If you want to keep more of your earnings, get your Russia work visa with minimal hassle and avoid extensive tax declaration forms, we give you all of the information you need to find the perfect company. This service is completely free, so there’s no risk in learning about your options.