Why working in Russia is no longer beneficial

Over the past month, numerous events have occurred that concern remote workers continuing to work for Russia.

Why remote workers will have to stop doing this now or in the near future.

1. Tax Increase.

Last winter, there was news about the need to raise taxes for employees who have left Russia but continue to work for Russian companies remotely.

They were talking about the Personal Income Tax (PIT), which used to be 0% if you lived abroad for more than six months.

Today, the State Duma (the Russian parliament) passed a law introducing a 13/15% tax rate (depending on income) for such individuals.

Now, if you already pay taxes in your country of relocation, you will have to add the Russian tax on top of it.

For example, if the tax on income in Albania is 9.5%, and you add the 13% Russian tax, it would amount to 22.5%.

Moreover, in Russia, there are many hidden taxes, and PIT is just the tip of the iceberg. In reality, a person working in Russia pays around 45-50% of their salary in taxes.

2. US Sanctions imposed on July 20, 2023.

Yesterday, sanctions were imposed that affect more banks and money transfers, including Unistream, which I used.

Now, banks will start refusing to issue transfers, and sending rubles abroad will become either more challenging and expensive or, in the future, possibly only possible through cryptocurrencies, which adds additional costs.

3. Ruble Exchange Rate.

Over the past month, due to the military tensions and the exit of various companies, as well as a decrease in revenue from oil and gas, the ruble has once again hit rock bottom.

Now, it usually trades at no less than 90 rubles per US dollar.

Therefore, as I mentioned recently, receiving a salary in rubles has become equivalent to volunteering due to the significant decrease in its value.

4. Possible Future Factors.

Some topics have not been implemented yet, but they are already being discussed.

For example, my former IT company is ready to dismiss all employees who work abroad when restrictions on working with personal data are introduced.

They have been warned several times that such restrictions may be implemented in the future, which means that personal data, for example, of the company's clients, may only be accessed by employees who are physically present within Russia.

These are the latest news. Perhaps this information will help someone make the right choice.