The Staff Accounting update for Russia to support changes in personal income tax (NDFL) for non-residents working with patents in Microsoft Dynamics AX

According to the Federal Law No 285-FZ from 4th of October 2014, new categories of non-resident tax-payers with a decreased tax rate have been introduced. It extends the existing list of special non-resident categories. To comply with the requirements the following changes have been implemented:

• The list of tax statuses applicable to income groups is extended.
• The possibility of employee tax status identification is changed.

According to the Federal Law No 368-FZ from 24th of November 2014, foreigners who don't need visa to stay in Russia must acquire a patent to get a work permit. To get the patent they need to pay the income tax in advance for the entire term of the patent. The tax paid in advance will be then taken into account when calculating the tax amount by the employer. To comply with this requirement the following changes have been implemented:

• The possibility to register pre-paid income tax in the system is implemented.
• The tax calculation algorithm is changed in order to take into account the tax that was paid in advance.

Update information

A supported update is now available from Microsoft. The update corrects the problem that is described in this article. Apply the update only to systems that are experiencing this specific problem.

To resolve this problem immediately, contact Technical Support for Microsoft Dynamics and related products to obtain the update. You can log on to the Microsoft Dynamics site and create a new support request. To do this, visit the following Microsoft website:

https://mbs.microsoft.com/support/newstart.aspx

You can also contact Technical Support for Microsoft Dynamics and related products by telephone at (888) 477-7877.

Note In special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.