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(From The Moscow Times)
What Russian taxes does a director of a Russian company pay?
Olga Boltenko, tax lawyer with LeBoeuf, Lamb, Greene & McRae, writes:
If a director does not receive any compensation from a Russian company for performing his or her duties, there are no Russian tax consequences.
If there is some compensation paid by the company of which he or she is a board member, it will give rise to tax liability. The compensation will be considered as a source of personal income for the director and will be subject to personal income tax.
Often when a director does not receive compensation, a company may instead reimburse for expenses associated with performing the functions of a director. This might give rise to tax liability depending to the type of expense.
In general, business expenses should not be treated as income of the director unless they have been made in his or her personal interest -- that is, not in his or her professional capacity.