Relocants in#nbsp;the#nbsp;UAE Employed by#nbsp;Russian Companies Will Be Subject to#nbsp;Taxation in#nbsp;Russia. Commentary by#nbsp;Nikolai Roudomanov for#nbsp;Business FM
Russian nationals who have relocated to the United Arab Emirates while remaining employed by Russian companies will be required to pay personal income tax in Russia. Beginning in 2026, the Russia-UAE double tax treaty enters into force. Under its provisions, remote employment by or engagement with a Russian employer or principal will be treated as work performed in the state in which that employer or principal is resident.
Nikolai Roudomanov, advocate and partner at Nekrasov, Roudomanov & partners, notes that remote employment and contract work will effectively be deemed to constitute the performance of a labour function within the Russian Federation, irrespective of the employee’s physical location at the time of performance.
"If a Russian company engages an employee based in Dubai, that individual’s income will be treated as sourced in Russia and will be subject to Russian personal income tax. It is not necessary for the individual to be physically present in the UAE at the time of performing their duties — it is sufficient that the employee holds UAE tax resident status. The agreement with the UAE is the first instance in which remote employment has been expressly addressed in an international tax treaty. For Russian nationals, the practical implication is clear: working from Dubai for a Russian company is permissible, but the tax obligation to the Russian Federation remains."