Russia: Foreign Execs on Short-Term Visits Exempt From Health Insurance

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By Sergei Blagov

Compensation paid foreign executives, including board members of local companies, visiting Russia on a short-term basis is not subject to the mandatory health insurance levy, the Russian tax authority clarified in Letter BS-4-11/17685, released Sept. 11.

According to Section 1, Article 420 of the Russian Tax Code, compensation paid employees is generally liable for social insurance taxation, but Article 13.5 of Federal Law No. 115-FZ on the legal status of foreign nationals and Article 10 of Federal Law No. 326-FZ on mandatory health insurance specifically exempt foreign nationals traveling to Russia on a short-term basis from otherwise mandatory health insurance coverage, the tax authority explained.

To contact the reporter on this story: Sergei Blagov in Moscow at

To contact the editor responsible for this story: Rick Vollmar at

For More Information

Full text of Letter No. BS-4-11/17685 is available in Russian here.

For more information on Russian HR law and regulation, see the Russia primer.

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