1. There is an Income Tax Convention signed in 1994 between USA and Russia.
  2. There is no a Totalization Agreement signed between USA and Russia.
  3. Russian Individual Tax Rate is 13%. It is a flat tax rate.
  4. Individuals do not pay Social Security Tax in Russia.
  5. Normally nonresidents and foreigners are taxed heavily in Russia.
  6. The resident status might be obtained after being physically present in Russia for over 183 days during 12 consecutive months.
  7. There are different entities can be registered in Russia (ЗАО, OAO, OOO, ЧП (expired), ИП and etc). Corporations and companies pay income tax based on progressive tax rate.
  8. Упрощенная система налогообложения is a good strategy for small businesses/freelancers/contractors. This system allows to pay only one Russian tax called “единый налог”. It is a flat business tax on income. Nonresidents might not be allowed to use this tax system. 
  9. US citizens and US residents must report worldwide income on the US Individual Tax Return including the income that is subject to taxes in Russia.
  10. Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) are available to eliminate or decrease the US Federal Tax Liability. You might still be liable to state income tax.
  11.  If you are a business owner, contractor or freelancer who works for himself/herself in Russia, you can exclude Russian income and avoid or minimize your US federal Income tax. However, you still pay the US self-employment tax on your net income (assuming that you are a Sole Proprietor – Schedule C filler).