The Federal Tax Service clarifies the rules for the payment of wages in currency

In Letter No. KV-4-17/10219@ from August 9, 2023, the Federal Tax Service clarified its position concerning the payment of wages to employees in currency.

Where employees of foreign branches and representative offices of a Russian legal entity are located outside of the Russian Federation, the Federal Tax Service considers it possible:
  • the transfer of wages to such employees (both residents and non-residents) from the entity’s accounts in a foreign bank;
  • the payment of salaries in cash where Russian resident employees are concerned.

Russian residents have the right to credit these payments to their foreign accounts.

However, the above norms do not allow the payment of wages to employees of another Russian legal entity, even if there is a corresponding agency agreement between the organizations.