Russian job board HeadHunter, which is registered in Cyprus and has been paying taxes in Cyprus up to now, has become a Russian tax resident.

HeadHunter began trading shares on the US Nasdaq Stock Market in an initial public offering last month.

A HeadHunter spokesperson commented, “In accordance with Russian law, any foreign company can open a branch or representative office in Russia and submit to the tax authorities an application for voluntary recognition of itself as a tax Russian resident.”

The spokesperson did not address why the company changed its residency, however Russian publication Vedomosti reports that a source familiar with plans of the company’s shareholders said the change of tax residency will allow the company to hold meetings and sessions for the boards of directors in Russia.

The transition to the Russian residency will affect the taxation of dividends, as in Russia the tax rate on dividends to foreign holders is 15%.

The company, which operates in Russia as well as Kazakhstan and Belarus, reported revenue of RUB 1.67 billion (USD 25.8 million) for the first quarter ended 31 March 2019. According to SIA, HeadHunter is among the 20 largest online job advertising firms in the world.