Income of foreign entities from sources in the Russian Federation may be subject to a tax withheld at the source of income. In international practice, the tax is called withholding tax (WHT).
Article 309.1 of the Russian Tax Code lists the types of a foreign entity’s income subject to taxation in Russia. Withholding tax is calculated, withheld and remitted by a tax agent. In most cases, a tax agent is a Russian legal entity (less often — a Russian individual entrepreneur or a permanent establishment of a foreign entity).