Mellow Becomes a Tax Agent
Starting January 12, 2026, Mellow becomes a tax agent for personal income tax (PIT, known in Russia as NDFL) for individuals from Russia with "Individual" tax status – in line with Clause 1.1 of Article 226 and Sub-clause 6.3 of Clause 1 of Article 208 of the Tax Code of the Russian Federation (Federal Law No. 389-FZ of July 31, 2023).
What This Means for You
Automatic Tax Withholding
Whenever you withdraw funds from your Mellow balance to a bank account on our verified list, we’ll automatically calculate and withhold your PIT, then transfer it to the Federal Tax Service twice a month. This applies to Russia-based freelancers with “Individual” tax status.
Here’s an important timing detail: Let’s say a client pays you in December 2025, but you don’t withdraw those funds until January 15, 2026. We’ll withhold PIT because the withdrawal happens after January 12. From that date forward, tax gets withheld on any withdrawal to Russian bank accounts – regardless of when the client originally paid you. |
We Handle Your Tax Reporting
As your tax agent, we take care of all the tax reporting – you won’t need to file declarations yourself for income you receive through Mellow under “Individual” status.
Additional Data We’ll Need
To work with the tax authorities properly, we need to collect:
Personal data | Financial data |
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How This Works for Non-Residents
When non-residents withdraw funds to Russian bank accounts, they also pay PIT – at rates ranging from 13% to 22% depending on annual income (Sub-clause 6.3 of Clause 1 of Article 208 of the Tax Code).
What About Social Insurance Contributions?
Mellow acts as a tax agent for PIT only. Payments to individuals through our service aren’t subject to social insurance contributions, and we don’t remit them.
What We Need From You
Verification
Everyone except sole proprietors must complete verification. We need this to determine your country of tax residency and file reports correctly.
TIN (INN)
Russian individuals must provide a TIN (known in Russia as INN) to withdraw funds. Without one, you won’t be able to use Mellow – check out our article about registering with the service for details.
Your Current Tax Status
Self-employed persons and individual entrepreneurs from Russia don’t need to change anything – just keep reporting income according to your residency and tax status as you normally would.
If you freelance as an individual, make sure your account shows the correct status.
Important: If your tax status is set to “Individual,” starting January 12, 2026, PIT will be automatically withheld with every withdrawal to a bank account. |
Tax Rates
Since 2025, Russia uses a progressive PIT scale. Your rate depends on annual income:
Annual Income | PIT Rate |
Up to RUB 2.4 million | 13% |
RUB 2.4–5 million | 15% |
RUB 5–20 million | 18% |
RUB 20–50 million | 20% |
Over RUB 50 million | 22% |
Important: The higher rate only applies to the amount exceeding each threshold, not your entire income.
Tax Calculation Example
Annual income of RUB 3 million:
First RUB 2.4 million → 2.4 million × 13% = RUB 312,000
Remaining RUB 0.6 million → 0.6 million × 15% = RUB 90,000
Total tax: RUB 402,000
How Tax Works for Foreign Currency Withdrawals
When you withdraw in dollars or euros, here’s how we calculate tax:
Amount in currency × CBR exchange rate × PIT rate = Tax withheld
(Amount in currency × Mellow exchange rate) – Tax withheld = Amount you receive
Foreign Currency Tax Example
Withdrawing $100 at a 13% rate:
$100 × 79.7296 × 13% = RUB 1,036.48 (tax withheld)
($100 × 75.7431) – 1,036.48 = RUB 6,537.83 (you receive)
Please note: Income in foreign currency gets converted to rubles at the official Central Bank of Russia exchange rate on the date you actually receive the income (Clause 5 of Article 210 of the Tax Code). The receipt date is when funds arrive to your bank account or you receive them by other means. You can check current exchange rates in Mellow’s “Finances” section.
Personal Income Tax Declaration (Form 3-NDFL): When You Need It
You only need to file a Form 3-PIT declaration in two situations:
1. When You Have Income Without a Tax Agent
If you received income from an organization that didn’t act as a tax agent and didn’t report the information to tax authorities. For example, in 2025 Mellow wasn’t yet a tax agent for Russian individuals – so you’ll need to file the declaration for 2025 yourself. Learn more about completing Form 3-NDFL and paying tax.
2. To Claim a Tax Deduction
If you want to recover some of the tax you paid – for things like education, medical treatment, or property purchases. Learn more about tax deductions.
Where to View Your Tax Reports
Starting in 2026, you’ll find everything about withheld and remitted taxes in the “Taxes” section of your Mellow account (we’re developing this now). Each month, you’ll see a document with detailed tax amounts there.
At year’s end (usually in March of the year following the reporting one), you can get a Certificate of Income and Tax Amounts of an Individual – formerly known as Form 2-NDFL. The certificate will be available in your Federal Tax Service personal account under “Income Information.”
The bottom line: Starting January 12, 2026, freelancers with “Individual” tax status don’t need to report Mellow income themselves.
Common Questions
Why does an international company need to comply with Russian tax laws?
Russian legislation applies to all organizations working with Russian users – international ones included. As an international service, Mellow complies with the laws in every country where we operate, ensures legal protection for our users, and follows local regulatory requirements.
Can I withdraw money without a TIN (INN)?
No. You need to provide your TIN (known in Russia as INN) to withdraw funds through Mellow. You can get one in person at a tax office or online through the Federal Tax Service portal. Until you enter your TIN in the system, we can’t process withdrawals.
How do I find my TIN (INN) if I already have one?
If you already have a TIN (INN), you can look it up online through the Federal Tax Service portal – just enter your passport details or information from another identity document.
Have questions? Reach out via the online chat in your Mellow account or email [email protected].