Structuring Relocated IT Team Payouts: Legal Schemes in Serbia, Armenia, and Kazakhstan

Introduction: New Challenges in Managing Distributed IT Teams

Since 2022, hundreds of Russian technology companies have relocated their software engineering teams to friendly jurisdictions. Serbia, Armenia, Kazakhstan, Georgia, and the UAE have emerged as key hubs for Russian IT professionals. However, the physical relocation of employees does not exempt a company from the need to comply with the strict regulatory standards of both Russian and foreign jurisdictions.

When distributing payouts to personnel located outside the Russian Federation, IT companies face three primary risk categories: 1. Tax Risks: Shifts in the tax residency status of employees (loss of Russian tax residency after spending more than 183 days abroad within a calendar year) and the corresponding rules for Personal Income Tax (PIT/NDFL) and social security contributions. 2. Currency Control Risks: Strict limitations imposed by Federal Law No. 173-FZ on foreign currency transactions between Russian residents, as well as reporting requirements for foreign bank accounts. 3. Banking AML Compliance: Sudden transaction blocks by Anti-Money Laundering (AML) systems when attempting mass payroll payouts to personal cards of individuals abroad.

This guide analyzes legal structural models for interacting with relocated tech staff and details the current tax administration requirements.

Section 1: Tax Regimes for Relocated Staff in 2026

The taxation of remote employees' income has undergone significant statutory revisions. The following rules under the Tax Code of the Russian Federation (NK RF) govern personal income tax (NDFL) for individuals working from abroad:

• Employment Contracts with Russian Companies: If a remote employee is employed under a standard labor contract with a Russian legal entity, their personal income tax (NDFL) rate is fixed at 13% (or 15% for annual income exceeding 5 million rubles). This rate applies regardless of whether the employee remains a Russian tax resident or has lost residency (by staying abroad for more than 183 days). The employer is legally obligated to act as a tax agent and withhold this tax.
• Civil Law Contracts (GPH): If a contractor performs work or provides services under a civil law contract (GPH) from abroad, the tax rate is also set at 13% (or 15%), provided that the source of payment is a Russian company (meaning payouts originate from Russian bank accounts or Russian legal entities).
• Self-Employed Status (NPD): An IT specialist working from abroad retains the right to apply the "Professional Income Tax" (NPD) regime when working with Russian corporate clients (resulting in a 6% tax rate for B2B services). This is permitted as long as the specialist remains a citizen of the Russian Federation or a citizen of a Eurasian Economic Union (EAEU) member state. However, a significant operational risk exists: the Federal Tax Service (FNS) conducts automated checks to ensure that self-employed contracts do not mask actual employment relations (violating Article 54.1 of the NK RF).

Section 2: Compliant Payout Models: Sole Proprietorships, Civil Contracts, and Subcontracting

To minimize administrative overhead and tax exposures, tech companies generally utilize three legal models when collaborating with relocated teams:

Model A: Operating via Local Sole Proprietorships (IP) in the Host Country

The IT specialist registers as an individual entrepreneur / sole proprietor in their country of residence (e.g., Paušal in Serbia, Microbusiness in Georgia, or IP under simplified declaration in Kazakhstan) and enters into a B2B service agreement with the Russian or foreign office of the company. * Pros: Extremely low local tax rates (such as the flat-rate lump-sum tax in Serbia or 0% for microbusinesses in Georgia), and the complete elimination of currency residency transaction risks for the Russian entity (since paying an overseas entrepreneur for B2B services is fully permitted). * Cons: The contract must pass currency control validation under Bank of Russia Instruction 181-I if the total contract value exceeds 3 million rubles, and the contractor must handle local bookkeeping.

Model B: Civil Law Contract (GPH) with an Individual using Foreign Credentials

The company signs a services agreement with a relocated individual, paying their compensation in rubles or a friendly foreign currency directly to their overseas bank account. * Pros: Quick onboarding and setup; the employee does not need to register a business entity locally. * Cons: Heavy currency control restrictions. A Russian legal entity can only transfer foreign currency to a Russian citizen's foreign bank account under strictly defined exceptions allowed by Federal Law 173-FZ.

Model C: International IT Subcontracting (Outsourcing)

The Russian IT company signs a master development contract with a registered foreign legal entity (such as a subsidiary IT hub in Armenia or Serbia). This foreign entity then distributes the incoming funds locally among developers. * Pros: The most robust model from a banking compliance standpoint. The domestic bank processes a standard B2B software development contract with a foreign corporate entity, eliminating individual-level AML flags.

Section 3: Currency Control and Law 173-FZ Constraints

Federal Law No. 173-FZ strictly prohibits foreign currency transactions between Russian currency residents (both individuals and legal entities), except in highly specific statutory scenarios.

If your company pays compensation to a relocated Russian citizen:

• Ruble-Denominated Transactions: Transferring rubles to a Russian citizen's foreign bank account is fully permitted. However, the sending bank will require the service contract and may ask for confirmation of the recipient's currency residency to assign the correct transaction code (typically {VO80010} or similar non-trade settlement codes).
• Foreign Currency Transactions: Direct foreign currency transfers from Russian corporate accounts to the foreign bank accounts of individual Russian citizens (currency residents) are prohibited, except for narrow exceptions involving overseas branch operations. Violations are classified as unlawful currency transactions, risking administrative fines up to 100% of the transaction volume.

Section 4: Onex Payout Infrastructure for Distributed Teams

Onex provides the IT industry with a turn-key payment infrastructure to streamline global payroll and contractor settlements.

Why IT Companies Partner with Onex:

• Mass Payout Registry: Execute automated mass payments to remote developers, contractors, and local sole proprietors in Serbia, Armenia, Kazakhstan, Turkey, and Asia via a single contract.
• Automated Compliance Filter: Real-time validation of recipient residency status and banking details against Law 173-FZ rules to eliminate the risk of illegal currency transactions.
• Structured Tax Documentation: Automated generation of service completion acts, invoices, and accounting vouchers for easy principal bookkeeping.
• Competitive FX Rates: Buy local currencies (RSD, AMD, KZT) directly on the Onex exchange channel, saving up to 5% on conversion margins compared to traditional banks.