Deadline nears for quarterly income reporting of highly qualified foreign specialists

IMPACT – HIGH

What is the change? Employers must report the income of highly qualified foreign specialists on a quarterly basis.

What does the change mean? Reporting for the fourth quarter of 2014 is due no later than Jan. 31.

• Implementation timeframe: Now through Jan. 31.
• Visas/permits affected: Work visas.
• Who is affected: Companies with foreign highly qualified specialists.
• Business impact: The quarterly report is mandatory for employers who hire foreign highly qualified specialists, and employers who fail to report face heavy fines.
• Next steps: Employers should work with their BAL representative to meet the reporting deadline.

Background: The reports are required quarterly. The deadline is Jan. 31 for reporting the salaries of highly qualified specialist foreign employees for the period Oct. 1, 2014 to Dec. 31, 2014.

Companies that fail to comply face administrative fines ranging from 400,000 to 1 million rubles (about US $6,000 to $15,000). Company officials may also be fined 35,000 to 70,000 rubles (about US $530 to $1,060).

BAL Analysis: Employers are encouraged to track salaries regularly to make it easier to collect and report the data by the quarterly deadlines. Employers should work with their BAL attorney to prepare reports by the deadline.

This alert has been provided by the BAL Global Practice group and our network provider located in Russia. For additional information, please contact your BAL attorney.

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