Payments under a GPC agreement with an individual. Features of the calculation of insurance premiums for payments made under a civil law contract for the performance of work (provision of services)
For the purpose of calculating personal income tax, the date of actual receipt of income in cash is the day of their payment. This is stated in subparagraph 1 of paragraph 1 of Article of the Tax Code of the Russian Federation. Accordingly, advance payments received by an individual (not having the status of an individual entrepreneur) in the tax period under a civil law contract are included in the income of this tax period. It does not matter in which tax period the final settlement will be made after the signing of the act of work performed (services rendered).
Insurance premiums
In accordance with the terms of a civil law contract, an advance payment can be paid to a contractor or performer either for the work completely performed by him (service rendered) or its separate stage. For the purpose of paying insurance premiums, the date of making payments and other remunerations is the day when payments and other remunerations are accrued in favor of an individual employee (Article TC RF).
On this basis, the Ministry of Finance draws the following conclusion. The remuneration paid under a civil law contract is subject to insurance premiums after the final delivery of the results of work (rendering services) or its individual stages on the basis of the relevant acts of acceptance of work performed (rendered services) at the time of its accrual in favor of individuals.
When hiring, it is obligatory to document the relationship between the employee and the new employee. They are regulated not only by labor, but also by civil law. Therefore, in need of other people's services, it is necessary in 2019 to conclude an employment or civil law contract with an individual. Let's consider what is the difference between these types of agreements, what are the advantages and features of GPC.
A civil law contract (GPC) is an agreement concluded by an entrepreneur or organization with an individual, implying a one-time provision of services or performance of work with a certain end result without including an employee in the state. At the same time, work can be carried out without an entry in the work book.
Criteria for a civil law contract:
- the one-time nature of the work or service;
- lack of control over the work process by the employer;
- the impossibility of establishing a schedule and order of work, determining only the deadlines for the delivery of an order;
- assessment of only the final result of labor.
The components of a civil employment contract are exactly the same as any other contractual document:
- the subject of the contract is the final result expected from the individual;
- participants in the relationship - the customer and the contractor;
- deadline for the fulfillment of obligations - final or with phased intervals;
- the amount of remuneration and the procedure for its payment;
- additional significant conditions for the parties.
What are civil law contracts
These agreements can be classified according to their content.
property contracts. They are intended to regulate the transfer of property into ownership or lease:
- donation;
- exchange;
- supply;
- purchase and sale;
- rent;
- leasing;
- rental;
- hiring;
- loan.
Contracts for the performance of specific work:
- domestic;
- construction;
- design and survey;
- meeting the needs of municipal and state structures;
- participation in shared construction, etc.
Service contracts:
- actual - transportation, freight, storage, paid provision, trust management of property;
- legal - guarantee, agency services, commission;
- financial - loan, credit, insurance, non-cash payments, banking services, etc.
GPC agreement and employment contract: what is the difference
Let's compare these types of contractual relations:
- Rules of law. The terminology and rules of the Labor Code of the Russian Federation are used in the employment contract, and the civil labor contract is regulated exclusively by civil law.
- Parties to the agreement. When an employment contract is signed, its parties are called the employer and the employee; in the GPC agreement, this is the customer and the contractor.
- Reward. The person who has concluded an employment contract receives a salary, that is, payment for labor, and the signatory of the GPC agreement receives remuneration for the result of labor.
- Warranty. The employee receives social guarantees from the state, the employer pays him sick leave, vacation, etc., transfers contributions to social funds; the performer is not entitled to this.
- Work completion document. It is not required when fulfilling obligations under an employment contract, it is required when registering under a GPC agreement.
- Labor schedule. It matters for labor relations, it is not important for civil law.
Pros and cons of a civil law contract with an individual in 2019
Any form of registration of contractual relations has its advantages and disadvantages for both parties. Let's analyze what risks and bonuses await the customer and contractor who have signed a civil law contract.
GPC agreement: pros and cons for the employee
In contrast to labor law, the term "executor" is adopted in civil law, since he performs work or service on a one-time basis, and not on an ongoing basis.
No. p / p | Benefits for the performer | Cons for the performer |
1 | It can be reclassified into an employment contract if it formally has its signs. | Considered the worst alternative to an employment contract, there are no entries in the work book. |
2 | The performer is completely autonomous, he is not subject to work schedule. | The contractor cannot interrupt work, referring to sick leave or taking a vacation at his own expense. |
3 | The Contractor is not concerned with moments related to work in a team: subbotniks, meetings, corporate parties, etc. | The performer is not part of the staff of the organization. |
4 | No overtime. | The inability to somehow increase the agreed fee. |
There is no need for many formal points: medical examination, certification, etc. | Social payments and compensations are not allowed. | |
6 | He regulates his own activities, being responsible only for the result of the work, a minimum of external control. | It is not provided by the employer with working tools, materials, workplace, organizing the process independently. |
7. | Money only for a real result, the ability to agree on the payment procedure. | Termination of the contract at the initiative of the contractor will require him to pay a penalty to the customer. |
Pros and cons of the GPC agreement for the employer
In civil law, the employer is called the Customer, since he provides the contractor not with a permanent job, but with a one-time order.
The personal income tax rate depends on the category of the performer:
- 13% is supposed to be deducted from the income of residents of the Russian Federation, including foreign highly qualified specialists;
- 30% applies to non-residents, including foreign performers.
This tax must be withheld upon payment of remuneration and transferred either on the day the money is actually transferred, or on the day it is credited to the contractor's account. If the contractor is given remuneration in non-monetary form, the tax authority must be informed about this.
Important! When concluding a GPC agreement with an individual entrepreneur, it is not necessary to withhold personal income tax, because individual entrepreneurs pay income from their entrepreneurial activities themselves.
Tax deductions
Personal income tax payers have the right to make tax deductions permitted by law (Chapter 23 of the Tax Code of the Russian Federation):
- professional deduction - you can reduce the tax base by the amount of actually incurred costs under the contract;
- standard deduction - applied at a personal income tax rate of 13% (these are ordinary deductions for yourself and a child tax deduction);
- property deduction under the GPC agreement is not provided.
Payment of contributions to social funds
Remuneration under a GPC agreement is subject to insurance premiums in the Pension Fund in the same way as wages under an employment contract. At the same time, the rate of contributions to the pension fund is 26% of the employee's salary.
An exception is the payment to the FSS, since the customer does not control the process of work by the contractor, and therefore is not responsible for possible injuries, accidents or occupational diseases.
Attention! Also, no compensation will be paid in connection with maternity. But it is possible to provide for such insurance as an additional clause of the contract.
The procedure for concluding labor relations (under the GPC agreement)
The procedure for concluding a GPC agreement is similar to the establishment of any contractual relationship, since it is the establishment of legal relations between the parties, which is regulated by Ch. 28 of the Civil Code of the Russian Federation.
It goes through the following stages:
- Offer - the party proposing to conclude a contract sends its offer to the other party in writing or orally. It must conclude the essential contractual terms and the intention to conclude the contract after the answer.
- Acceptance - a response to an offer to conclude a contract.
- Formulation of the text of the agreement.
- Signing by the parties.
How to draw up a GPC agreement
A civil law contract with an individual contains the following mandatory sections.
- The subject of the contract is the result of the performance of work or the provision of services.
- The term of the contract is a specific date by which the declared result must be presented.
- Rights and obligations of the parties - the contractor undertakes to achieve the result stated in the subject of the contract and provide it to the customer, and the latter undertakes to pay him remuneration in the agreed amount. The Contractor has the right to delegate the performance or involve additional third parties.
- Responsibility of the parties - describes the sanctions in case of non-fulfillment of the terms of the contract.
- Terms of change and termination - you need to specify whether it will terminate by agreement of the customer and the contractor or when the designated period ends.
- Details of both parties.
Change and termination of civil contracts
You can perform these actions voluntarily or involuntarily.
By agreement of the parties, this can be done according to any procedure and at any time during the validity of the contract.
If changes or termination are requested by only one party, the issue is decided by the court if it deems the request justified. This is only possible if one of the parties has materially violated the prescribed conditions.
An agreement to amend or terminate the contract of good will of the parties is drawn up and signed in accordance with the procedure similar to the contract. It comes into force from the moment of signing.
Forced termination by the court of the obligations of the parties change or terminate from the moment the court decision enters into force.
Performers from outside the state - a great opportunity for the company to get an employee who performs certain tasks established by the concluded agreement. The regulation of relations between the parties is based on a civil law contract. This type of agreement is chosen more often than an employment contract due to certain advantages. Payment is made only after the sale of the goods, which is convenient for the contractor.
A contract is a legal confirmation of the existence of obligations for each party in accordance with the agreement. The fact of the establishment of legal obligations is established by the contract and clauses of the legislation.
Article No. 420 of the Civil Code of the Russian Federation defines the concept of a contract - a transaction that regulates the relationship of counterparties, establishes, changes or terminates civil legal relations. Articles No. 153 and No. 154 establish the rules to be followed in the preparation of multilateral transactions.
Due to the contract, legal relations of persons may arise, change or terminate. The contract is concluded only with the consent of both parties to comply with and take into account the items included in the document. If the agreement of the agreement is not an expression of the will of at least one party, then it loses its legal force.
The contract is a confirmation of the existence of a transaction between the parties. For this reason, a provision was created with the rules for applying transactions, contained in paragraph 2 of Article No. 420 of the Civil Code of the Russian Federation.
Contract and obligations are two distinct concepts that relatively intersect. The contract is the fact of the emergence of rights and obligations, fixed from the legal side. Obligation - civil legal relations that arise on the basis of a legal contract and other types of transactions (unilateral, illegal, and so on).
The contract is an important part of society, since it regulates relations between the participants on the basis of civil legal relations. But the main area of application is property relations. But nothing prohibits the regulation of non-property relations by means of an agreement.
A civil law contract is the most common type of agreement. The document is vested with the right and legal force in accordance with subsection 3 of the Civil Code of the Russian Federation. Such contracts are governed by the rules of Chapter 9 of the Civil Code of the Russian Federation.
The contract is a legal act, but differs from other legal facts. The difference lies in the fact that the agreement not only affects civil relations, but also regulates the behavior of the parties, their obligations and rights. A striking example is a contract of sale, according to which one party (the seller) undertakes to transfer ownership of something only after a fixed amount of money has been transferred, and the second party (the buyer) undertakes to accept the goods after payment has been made.
Article 8 of the Civil Code of the Russian Federation establishes a certain list of legal facts, which is sufficient for opening transactions. In accordance with these rules, even those contracts are created that are not implied by the law, but do not contradict it. An example of a large number of parties when drawing up an agreement is, implying the joint activities of persons. At the same time, the agreement states that the invested funds will be used jointly by all parties to the agreement for the purpose of making a profit or other purpose. Permitted achievement goals are listed in Article No. 1041 of the Civil Code of the Russian Federation.
The contract and the deal are concepts that differ from each other, the main feature of which is the breadth of the second. The contract is only a consequence of the emergence of obligations and rights for the parties, which is directly a transaction in its direct form. But not every transaction can be considered a contract. The main condition for the compliance of the transaction with the contract is the mutual expression of the will of the parties to draw up an agreement and accept obligations and rights.
A transaction can be identified based on four features:
- it's a legal fact
- act of will
- legal action
- directly affects the rights and obligations of the parties
Today, a contract is a fact that is defined in the legal environment as the main one for regulating market relations between the parties. The document is required for the emergence of rights and obligations.
Differences between the GPC agreement and the labor agreement
If it is considered as an agreement between the employer and the employee, then regulation takes place on the basis of Article No. 56 of the Labor Code of the Russian Federation. Guided by the clauses of the legislative act, the employee will get a job, but he will be required to comply with the requirements and comply with the rules of the company's Charter and the code of the country. And the employer will pay remuneration or wages for fulfilling the conditions.
But the GPC agreement does not oblige to comply with the mode of operation, to comply with all orders of the head. The contract is necessary to determine the task for a person or organization that is obliged to hand over the result of work on time. If, however, there are risks, then the responsibility for them will lie only with the contractor.
Design rules
For registration, you need to consider the need for the following information:
- type of work or service
- liability borne by the parties in case of non-compliance with the conditions
- payment
- acceptance
- Term of the work
- requirements for the required quality of the result obtained from the work
Payment for the work performed under the terms of the agreement is made on the basis of the order of the head. Of the types of contracts, only two have been identified, which are necessarily accompanied by documentary evidence of the work performed: a contract and paid services. All other civil law relations do not require registration of acceptance certificates. But such a requirement may be indicated in the contract itself, in which case the acceptance-delivery is necessarily accompanied by the creation of relevant acts.
Acts are drawn up without fail only in cases where there are unified forms, otherwise arbitrary ones will be used. But certain forms are available only of the following type: No. OS-3 and No. KS-2, which are used for repair, reconstruction and modernization, as well as for work in capital construction, respectively.
All the rest, if it is necessary to draw up an act, imply the use of a free form, the main thing is to indicate all the details required by law. You can familiarize yourself with them in paragraph 2 of Article No. 9 of the Federal Law No. 129. Only if the required details are indicated, the act will have legal force.
Any company that operates on the basis of civil law contracts takes into account that all expenses in accordance with these agreements must be justified. Otherwise, if the Tax Inspectorate is interested in the reasons for signing a freelancer, although the company already has a person who performs the task presented. This is best explained by a properly drafted contract, according to which a freelancer must perform a certain task, and the reason may be the employment of the main employee or his incompetence in a particular issue.
tax payments
Like any other type of income, civil law contracts are subject to certain taxes and insurance premiums.
FL income tax
The remuneration that is paid on the basis of any contract is the direct income of a citizen. And the legislation establishes that any income received must be taxed. The rules for determining tax, depending on whether a person is an individual or a legal entity, differ.
If the tax needs to be removed from an individual, then the procedure falls entirely on the tax agent, which is the organization or person paying the remuneration. If the tax agent does not fulfill his mandatory conditions for paying tax to the state treasury, then he will be liable for this.
If the tax is levied on a legal entity or entrepreneur, then the payer is not a tax agent. That is, the tax is paid by the contractor himself on the basis of the taxation system used.
If the entrepreneur uses the standard taxation system, then the payment of personal income tax is made by him independently, which is indicated in article No. 227 of the Tax Code of the Russian Federation. If the entrepreneur uses special tax regimes, then the payment of personal income tax is not required from the income that was received as a result of entrepreneurial activity. Taxes are levied in accordance with the current special regime, which exempts from paying personal income tax.
When drawing up an agreement with an individual entrepreneur, it is necessary to indicate the details of the IP certificate. A copy of the certificate is a mandatory document attached to the agreement being drawn up. This will get rid of questions about the lack of payments to the tax.
income tax
If a company pays for the services of an individual on the basis of the GPC, then the expenses are accounted for as wages, in accordance with paragraph 21 of Article No. 255 of the Tax Code of the Russian Federation. The legislation does not allow concluding such an agreement with a permanent employee of the company in most cases, since the transferred duties are already included in the obligations of a citizen.
An exception is the situation when an employee of the company must temporarily receive a task that is not part of his duties, for which he will receive a separate reward. The main thing with all this is the reasonableness of the costs.
The contract being drawn up should be worked out as much as possible so that subsequently there will be no situation when the Tax Service cannot decide on the legality of the transaction. A well-drafted agreement between the parties is strong evidence of the reasonableness of the costs of a freelancer, which can even be used in court.
A special point is the payment of expenses of freelancers. The legislation indicates that the organization has the right to reimbursement of expenses only for full-time employees, that is, if there is an employment contract.
In other cases, the repayment of accounts can be perceived as a waste of funds from the organization's budget. To avoid this situation, the GPC includes a clause according to which the company pays for certain services (for example, flight tickets). In such a case, the company is able to prove that the costs were necessary, but not reimbursed.
But the best option is to include the costs in the price of the contract.
tax deductions
Chapter 23 of the Tax Code of the Russian Federation allows you to receive various tax deductions for all persons who are taxpayers, see the table.
Deduction name | The nature of the deduction and the required documents |
Professional | This method of returning funds is confirmed by Article No. 221 of the Tax Code of the Russian Federation. Any taxpayer will be able to use it, including those who work under a GPC agreement. To do this, you will need to confirm the costs in the course of fulfilling the terms of the agreement. This is one of the existing methods of reimbursement to the contractor, because in some cases an individual has to go on business trips, which are issued as such by the customer. To implement a professional deduction, you will need to draw up an appropriate application sent to the tax agent. Documents confirming the reality of expenses are attached to the appeal. |
Standard | Deductions provided to an individual from a tax agent in accordance with Article No. 218 of the Civil Code of the Russian Federation should be available to a freelancer. If an individual has several such agents, then registration can be carried out with any of them. To do this, you will need to draw up an application in writing and attach the necessary documents for processing the deduction. |
Property | Provided only by employers and in cases where the performer purchases real estate. The employee has the right to independently choose the method of receipt (a lump-sum payment at the end of the tax period or a gradual transfer of funds over a specified period). The legislation determines that only the employer can provide a property deduction, which is indicated in Article No. 220 of the Tax Code of the Russian Federation. |
Simplified taxation system
The situation is more complicated with companies that use the simplified taxation system. Domestic legislative acts do not indicate what type of expenses it is necessary to bring remuneration. If we take into account Article No. 255 of the Tax Code of the Russian Federation, then the funds spent on the services of freelancers are not labor costs, so the company will not be able to account for the money spent in this form. Remuneration is only funds that are issued to freelancers (individuals). If the person is an entrepreneur, the funds are considered wages.
In accordance with the law, funds paid to non-staff employees reduce the taxable base. It is possible only if the employee is not an individual entrepreneur.
But if necessary, on the basis of some other articles of the Tax Code, IP remuneration is taken into account as wages. For example, if the services are of a production nature, then the payment for the agreement is accounted for as material costs.
The nuances of calculating and paying insurance premiums
The GPC agreement allows you to reduce the amount of taxes paid, and in some cases even stop their transfer. It is necessary to carefully study the legislation, which indicates the possibility of reducing the amount of payments depending on the subject of the agreement:
Taxes are also reduced by deducting costs. If in most cases this amount must be confirmed with the help of documents, then there are rules that set a limit on the amount of remuneration accrued upon creation:
- photographs, audio and video works, architecture - 25%
- industrial designs, inventions - 30% of revenue for the first 2 years
- developments in the field of science and literature - 20%
- music, graphics for design and decor, sculptures - 40%
Contributions will not need to be made at all if the contract is signed with a part-time student, a foreigner without a Russian passport, but temporarily staying in the country legally and with an individual entrepreneur.
The amount of tax paid is determined as follows:
- 13% for Russian residents (Article No. 221 of the Tax Code of the Russian Federation)
- 30% for non-residents of Russia (Article No. 230 of the Tax Code of the Russian Federation)
Accounting for payments
When fulfilling the terms of payment for GPC agreements, it is necessary to enter all data into the accounting department. Accounting for expenses for paying for the services of contractors and performers who are outside the company's staff is made on account 76, sub-account "Settlements with various debtors and creditors". This includes not only payment for work or services, but also other costs that appear depending on the goals of the work, for the needs of:
- 20 - main production
- 23 - auxiliary production
- 26 - management services
- 44 - trade organizations
- 91 - works that are not related to production or sale
Posting is carried out on the date of drawing up the act of work performed or services provided. The reason for choosing this particular date lies in the justification of the costs incurred and the increase in debt to the contractor.
Payment of compensation under GPC agreements
In accordance with the cases specified in Articles No. 709 and No. 783 of the Civil Code of the Russian Federation, the costs incurred by the employee during the fulfillment of the terms of the contract are paid. Compensation and remuneration can be taken into account correctly in accordance with the law, but only if there are conditions that are stipulated in the contract at the stage of its creation. An example is the availability of primary documentation.
This becomes especially important in situations where a freelance worker is sent on a trip to another city or country. Legislation does not allow for the travel of a freelancer on the basis of a GPC agreement as a business trip, since compensation cannot be paid for an out-of-state employee. This rule is specified in article No. 166 of the Labor Code of the Russian Federation. Therefore, for compensation, it will be necessary to indicate in the contract that the amount spent on paying for tickets and accommodation will be reimbursed by the customer. Upon receipt of checks, the costs will be rightfully included in the cost of the trip.
Reimbursement of funds spent is not a taxable amount. The reason for this is that the money received is not earnings, but the return of the amount spent. Compensation will not be subject to taxation even if it is included in expenses when determining profit.
Payment for work on the basis of a GPC agreement
Payment on the basis of the drawn up GPC agreement for the services provided is made only after receiving the result of the work. Depending on the conditions of the drawn up agreement, various factors serve as confirmation, for example, an act of acceptance and delivery.
The document defines the mandatory presence of information on the amount of payment and the timing of receipt of funds. The agreed amount of wages will be transferred within the specified period only after confirmation of the work. A prerequisite for drawing up an acceptance certificate is only for two types of services. In the rest, paper is not required, unless it is stated in the contract or other legislative acts.
If the terms of the agreement contain a clause on time-based payment, then this fact is a sufficient basis for re-qualifying the contract as a labor contract. But this does not prohibit paying for work in installments. So, separate part of the amount for an advance payment, which will be paid before work begins. The remaining amount will be transferred to the contractor only after the fulfillment of the terms of the contract. The number of parts of payment is not limited, more often it is determined depending on the number of stages of work. It is even allowed to draw up a special individual payment schedule for a freelancer.
The GPC agreement is a convenient way to regulate the relationship between third-party performers and the customer. Drawing up an employment contract is much more complicated and obliges the parties to perform functions that are superfluous when it is necessary to perform a specific task.
A civil law contract implies a type of agreement that allows the employer to apply for the performance of services or certain work to freelancers. An important difference is the tax regulation of such agreements. Issues of payment of remuneration and compensation have nuances. All available parameters can be reflected exactly in the document being drawn up, but only if the contract is correctly drawn up.
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GPC or GPA ( civil contract) can legally be concluded with legal entities and individuals. The participants in the formalized civil law relations are the customer and the contractor (aka the contractor).
Pre-GPC awards are mostly subject to taxes and insurance premiums. The tax regime applied by a legal entity does not affect the calculation of insurance fees, as well as the obligation to pay them.
Accrual of payments for insurance against accidents at work and occupational diseases is possible if this is provided for by the terms of the GPC agreement. Insurance premiums are not withheld from rewards:
- Private entrepreneurs.
- Foreign citizens and stateless persons who have entered into a GPC agreement for the provision of services or works, and carry out activities on its basis outside the Russian Federation.
- If we are talking about contributions for temporary disability and maternity.
- For the amount of compensation for expenses that the contractor has incurred during the performance of work (rendering of services).
The calculation of the amount of contributions payable is carried out in the same way as in the case of an employment contract. The applicable insurance rates are identical:
- 22% - for compulsory pension insurance, i.e. OPS (the maximum base threshold in 2017 is 876,000 rubles, if it is exceeded, 10% is taken from "excessive" income);
- 5.1 - for FFOMS fees;
- 20% for compulsory health insurance and 0% for CHI and OSS for sickness and maternity (reduced tariffs);
- depending on working conditions - from 2 to 14% (additional tariff for workers in a dangerous environment with harmful conditions).
If the customer is eligible for benefits in terms of reducing rates, then he has the right to use these benefits when calculating those insurance payments that he will make in accordance with the GPC agreements. Since 2017, insurance premiums are transferred to the tax service, and not to the Funds.
Documents on the basis of which payments and calculation of insurance premiums are made under GPC agreements
Civil law relations between the customer and the contractor are determined by 2 key documents: the GPC agreement and the act of acceptance and transfer of work performed.
On the basis of these documents, as well as in the absence of mutual claims between the customer and the contractor, payment is made for the work performed. Those performers who are entitled to a deduction must write an application and submit documents confirming this right (for example, a business trip).
If the GPC agreement provides for the possibility of paying for work in advance, then insurance premiums will be withheld on an earlier payment date, i.e. at the time the advance is calculated.
Accounting for GPA insurance premiums
Insurance premiums are accounted for using the account. 69, on the credit of which they show the accrual of premiums for insurance, and on the debit - their payment. A separate sub-account is added to it for each type of insurance. The main entries for GPA insurance payments and their characteristics:
- DT 20 (25, 26, 44) KT 69-2 - accrual of PFR payments for GPA remuneration.
- DT 20 (25 ...) KT 69-3 - accrual of compulsory medical insurance payments for remuneration of the GPA.
- DT 20 (25 ...) KT 69-1.2 - accrual of payments for insurance against industrial accidents.
- DT 69-2 KT 51 (50) - PFR contributions have been paid.
- DT 69-3 KT 51 (50) - payment of compulsory medical insurance contributions.
- DT 69-1.2 KT 51 (50) - payment of contributions for insurance against industrial accidents.
Accounting entries for accruals and payments that relate to GPC agreements are made based on the information in the chart of accounts.
When maintaining accounting, reporting, forming a chart of accounts, state bodies, extra-budgetary funds and institutions take as a basis the table of classification of operations for the public administration sector (KOSGU), as well as an enlarged classification - codes of types of expenses (CWR).
Thus, the budget revenues of state extra-budgetary funds from insurance premiums are referred to article (code) KOSGU 160. This also includes the amounts of compulsory medical insurance contributions, as well as penalties, arrears, fines and other insurance revenues.
Apply: KVR 111, 112, 113 - for payments to employees, KVR 119 - for insurance payments and the payment of subsidies at the expense of the FSS, KVR 850 - for paying taxes, fees, and other payments.
When distributing expenses for payment for works or services by type, they proceed from the data of the classification table. For example, commission expenses are shown as KOSGU 212 (expense type 112), if they are paid by the employee. If the expenses for accommodation, travel are paid by the organization, then such expenses are displayed as KOSGU 222 and 226.
For the correct use of codes, the table of correspondence between the codes of KOSGU and KVR 2017 is used.
Calculation of GPA insurance premiums according to the standard formula
The remuneration minus the payments of the Pension Fund of the Russian Federation, mandatory medical insurance, as well as personal income tax is paid to the contractor only after he has completed all types of work and handed them over to the customer. Insurance premiums are calculated taking into account the current tariff rates (basic, additional or reduced) according to the standard formula (remuneration amount * tariff rate):
- For PFR (at the basic insurance rate): remuneration * 22%.
- For FFOMS (at the basic insurance rate): the amount of remuneration * 5.1%.
If the payer has the right to use reduced (additional) insurance rates, then when calculating in the specified formula, he uses a reduced (additional) rate. An individual entrepreneur who pays contributions for his employee is also entitled to apply all the listed tariffs. In other cases, the possibility of using the state of emergency on the simplified tax system of reduced tariffs depends on the type of activity.
Common mistakes in calculating insurance premiums under GPC agreements
Most of the errors relate to the design and submission of new reporting on contributions, the actual accruals themselves.
Examples of the most common errors in the calculation of insurance payments under GPC agreements | Explanations |
Insurance premiums accrued on the amount of remuneration paid to a foreigner who worked under the GPA | The legislation applies to foreigners and stateless persons: payment of insurance premiums is made only under employment contracts that were concluded for an indefinite period, or under fixed-term employment contracts for a period of 6 months or more |
The excess amount of insurance premiums that was accrued for remuneration under the GPA (calculated fees of the PFR, compulsory medical insurance and for insurance in case of illness and maternity) | For payments under the GPA, insurance premiums are charged only to the Pension Fund of the Russian Federation and compulsory medical insurance |
Insurance premiums for the amount of remuneration under the GPA are not accrued | This is a violation called non-payment of mandatory insurance premiums. He is held accountable for doing so |
Responsibility for violations in the calculation of insurance premiums
2017 was marked by a number of changes in terms of bringing to responsibility for violations in the calculation of insurance payments. From now on, such violations are qualified as tax offenses, they are punished not only by the Tax Code, but also by the Criminal Code of the Russian Federation.
Major violations | Sanctions for violation |
Non-payment, partial payment of insurance premiums due to a decrease in the base for their calculation, incorrect calculation, other erroneous actions | Penalty 20% on unpaid contributions ( Tax Code of the Russian Federation, art. 122, paragraph 1), and for the intentional commission of these actions - 40% ( Tax Code of the Russian Federation, art. 122, paragraph 3) |
The organization violated the deadlines, was late with the payment of contributions, but submitted correctly executed reports (calculation) in a timely manner | A fine is charged, for 1 delay the organization will not be fined |
Evasion of payment of contributions to the FIU, CHI, failure to submit reports or the inclusion of false data in it (the violator is an organization, other responsible person) | From August 10, 2017, criminal liability is provided for (Criminal Code of the Russian Federation, Art. 199): for an act on a large scale (underpaid amount of contributions, fees, taxes for 3 years - from 5 million rubles, and it is more than 25% of contributions and taxes payable) - at least a fine of 100 to 300 thousand rubles. the maximum fine for an act on an especially large scale (underpayment of fees and taxes of more than 15 million rubles) - 500 thousand rubles, imprisonment up to 6 years |
Violation of IP on a large scale (underpayment of more than 900 thousand rubles with an excess of 10% of contributions and taxes) | Fine from 200 thousand to 500 thousand rubles, imprisonment up to 3 years (Criminal Code of the Russian Federation, Art. 198) |
For each calendar day of delay, an interest rate of interest is charged, in 2017 it is 1/300. Penalties are not accrued during the period of the installment plan, deferral of repayment of debts in respect of insurance and other payments.
Example 1. Calculation of insurance premiums under a GPC agreement (for the creation of a work of literature and art)
K. L. Kharitonov (resident of the Russian Federation, individual) entered into a civil law contract with the scientific and practical publication "Floriculture: Theory, History, Practice" for the publication of his article. The terms of the contract determined the amount of remuneration, the period of its payment.
For the amount of royalties specified in the contract, payments to the Pension Fund of the Russian Federation, FFOMS are accrued. The author did not confirm the expenses for writing the article, therefore, here it is only possible to reduce the base for accruing insurance charges by 20%.
Deductions from the remuneration are made by the customer (in this case, this is the publication "Floriculture: Theory, History, Practice"), After that, the remaining amount of the remuneration is paid to K. L. Kharitonov.
Answers to frequently asked questions
Question #1: Can an individual, being a contractor in accordance with the GPA, independently pay insurance fees, personal income tax and in what cases?
No, the obligation to pay the contractor (individual) insurance fees, as well as income tax, lies with the customer. No circumstances relieve these obligations from the customer. If, for example, the GPC agreement contains a condition that the contractor pays the tax on his own, then such an agreement will be considered void.
Question #2: What deductions are provided by law for GPA executors?
The usual tax deduction for yourself (if the income from the beginning of the year is not more than 40 thousand rubles) and your child (if the total income is not more than 280,000 rubles) on income from which deductions are made at a rate of 13%.
A professional tax deduction is provided in the amount of confirmed expenses incurred in connection with the performance of work (provision of services) in accordance with the GPC agreement.
Question #3: Is it possible for foreigners who have concluded a GPA to use tax deductions?
No, even highly qualified specialists, being non-residents of the Russian Federation, are not entitled to use the listed deductions. This type of benefit is available only to performers who are tax residents of the Russian Federation.
Question #4: Under which GPC agreements do not need to pay insurance premiums?
Payment is made under work contracts, civil contracts for the performance of works (services), the execution of an author's order, as well as the granting of the right to use the work, for the transfer of copyright.
If an individual entrepreneur or an organization does not have the necessary specialists or it is difficult to do the work on its own, civil law contracts are concluded with third parties. For example, a contract of work or a contract for the provision of services.
If the person involved is an individual entrepreneur, then the formalization of relations with them is no different from relations with counterparties - organizations. Those. An individual entrepreneur issues an invoice for his services or a contract is concluded, works and services are performed, an act of work performed is signed. Payment is transferred to the IP account. Individual entrepreneurs pay taxes on their income on their own.
But if you attract just an individual who is not registered as an individual entrepreneur, then the situation will be a little more complicated. And in this case, the customer organization will be obliged to withhold personal income tax from the income paid, because. she will act as a tax agent. In this article, we will discuss how to calculate and withhold personal income tax from payments under a civil law contract for the performance of work or the provision of services.
1. Features of a civil law contract
2. Signing the act of acceptance and transfer of work performed
3. The obligation to withhold personal income tax from payments under a civil law contract
4. Personal income tax with cost compensation
5. Two points of view on the withholding of personal income tax from compensation of expenses to the contractor
6. Standard tax deductions
7. Professional tax deduction
8. Accounting for payments and withholding of personal income tax
9. Accrual of personal income tax under a contract in 1C
So let's go in order. If you do not have time to read a long article, watch the short video below, from which you will learn all the most important things about the topic of the article.
(if the video is not clear, there is a gear at the bottom of the video, click it and select Quality 720p)
In more detail than in the video, we will analyze the topic further in the article.
1. Features of a civil law contract
Civil law contracts for the performance of work (this is a work contract) and the provision of services are regulated by the Civil Code (CC) of the Russian Federation.
Individuals can provide you with services (regulated by Chapter 39 of the Civil Code) or perform work (regulated by Chapter 37 of the Civil Code). An important difference between a civil law contract and an employment contract is the presence of an individual specific task. The subject of such an agreement is always the end result of labor. And it is this result that the customer pays for.
Regardless of what you will have - works or services, a work contract or a contract for the provision of services for a fee, the general rules for the relationship between the customer and the contractor will be the same, since the provisions on the contract (Article 783 of the Civil Code) apply to the service contract.
The parties to the contract are the customer and the contractor. The one who gives the task is called the customer (this is an organization or individual entrepreneur), and the one who performs it is called the contractor. For a contract for the provision of services, it is similar - the customer and the contractor.
Under the terms of the contract, the contractor (executor) is obliged to perform specific work (render a service), clause 1 of article 702 of the Civil Code. What exactly it consists of, you need to describe in detail in the contract, which is in writing. In addition to the type of work or services performed, the contract specifies the start and end dates of work, the procedure for delivery and acceptance, the cost and procedure for payment, and the responsibility of the parties for violation of the terms of the contract.
The final price under the contract may include two parts:
- direct remuneration for the work (service) of the contractor (executor) (clauses 1, 2 of article 709 of the Civil Code);
- the cost of compensation for the costs of the contractor (executor).
The payment procedure under the contract may provide for the payment of an advance. It can be either a fixed amount or a percentage of the total remuneration. Do not forget to prescribe that in case of non-fulfillment of obligations under the contract, the contractor is obliged to return the advance payment received to you!
2. Signing the act of acceptance and transfer of work performed
After completing the work, the contractor is obliged to hand over its result to the customer, and the customer - to accept it. The delivery and acceptance of the result of work is documented by an acceptance certificate, which must be signed by the contractor and the customer (or their authorized representatives). Based on this act, the customer makes a settlement with the contractor. When drawing up an act, do not forget to include in it all the mandatory details provided for in Article 9 of Law No. 402-ФЗ “On Accounting”.
If the contractor bears any costs associated with the performance of work, the firm or entrepreneur can pay them. The procedure for payment of such expenses is determined in the contract. More on this a little later. For now, let's see what such an act might look like.
The act is drawn up in two copies - one for each of the parties. On the basis of the signed act, payment for the work is made and expenses are recognized in accounting and tax accounting.
3. The obligation to withhold personal income tax from payments under a civil law contract
An individual who performs work or provides services for the organization receives income. And this income is subject to personal income tax (clause 6, clause 1, article 208 of the Tax Code). The organization is a source of payment of this income, and therefore a tax agent (clause 1 of article 226 of the Tax Code). Therefore, the organization must withhold personal income tax from payments under a civil law contract and pay it to the budget.
When discussing with the contractor the price of the work performed, in order to avoid conflict situations, please note that he will receive his remuneration minus the tax withheld.
You do not have the right to shift the obligation to pay tax to an individual and thereby free yourself from fulfilling the duty of a tax agent. This is not provided for by law. Regardless of what you have written in the contract.
Also, you cannot pay personal income tax at your own expense (clause 9 of article 226 of the Tax Code), therefore, the amount including personal income tax must appear in the contract.
VAT rates:
- for residents of the Russian Federation - 13%;
- for non-residents of the Russian Federation - 30%.
See the table below for information on the date of receipt of income, withholding and payment of tax.
Tax is withheld directly from the amount of remuneration upon its actual payment (clause 1, article 223 and clause 4, article 226 of the Tax Code).
Do not forget that the fulfillment of the duties of a tax agent by withholding and transferring personal income tax is not limited to:
- at the end of the year, no later than April 1 of the next year, a certificate in the form 2-NDFL is submitted to the tax office;
- according to the results of the quarter in which an individual (your contractor or performer) received income, and according to the results of each of the subsequent quarters until the end of the year, you will show income and personal income tax in the form of 6-personal income tax.
If the organization cannot withhold the tax (for example, if the remuneration is paid in kind), then it must report this to the tax office and the contractor himself (clause 5 of article 226 of the Tax Code of the Russian Federation).
4. Personal income tax with cost compensation
In connection with the execution by an individual of a civil law contract, he may incur costs, for example, travel and accommodation costs, the acquisition of inventory items necessary for the performance of work or the provision of services. And the contract may provide for compensation for these actual costs by the customer (Articles 709, 783 of the Civil Code).
Compensation is paid when an individual provides primary documents on expenses incurred. To pay expenses, you can draw up an act in any form, in which you indicate exactly what expenses were incurred, in what amount, and list the attached documents. Also, the act must refer to the contract, which stipulates the obligation of the customer to compensate for the costs incurred in connection with the execution of the contract.
The question arises - is it necessary to charge personal income tax on the amounts of such compensation? Unfortunately, there is currently no definite answer to this question.
According to Article 209 of the Tax Code, the object of personal income tax is the income received by the taxpayer. According to Article 41 of the Tax Code, economic benefits in cash or in kind are recognized as income, taken into account if it is possible to assess it and to the extent that such benefits can be assessed. The economic benefit is determined in accordance with Chapter 23 of the Tax Code.
But even there we will not find a clear definition of income. Clause 1 of Article 210 says that when determining the tax base, income in cash and in kind is taken into account. All! No specifics, the circle is closed.
As a general rule, even compensation received to compensate for previous expenses is recognized as income. And only in situations specially stipulated by the legislator, these incomes are not subject to personal income tax. Unfortunately, there is no compensation for actual expenses incurred by an individual under a civil law contract among these cases.
5. Two points of view on the withholding of personal income tax from compensation of expenses to the contractor
So two points of view:
- Opinion of the Ministry of Finance(one of the last letters on this topic No. 03-04-05 / 1733 dated 01/23/2015, there are also a lot of letters with a similar opinion over the past years, the essence is the same everywhere): travel expenses, accommodation, etc. performers are related to their income. Therefore, the reimbursement by the organization of these amounts is carried out in the interests of the contractor, they are part of the price of the contract, and personal income tax should be withheld from these amounts. By the way, earlier this point of view was also supported by the courts (decree of the Federal Antimonopoly Service of the Volga District of October 28, 2008 N A65-610 / 2007-SA2-22, resolution of the FAS of the East Siberian District of November 30, 06 N A33-6892 / 06-Ф02-6252 / 06-C1).
- Court opinion: the payment of compensation does not entail the receipt by the contractor of economic benefits, but is aimed at reimbursing him for the costs associated with the execution of the contract. Therefore, such amounts should not be subject to personal income tax (Determination of the Supreme Arbitration Court of the Russian Federation of March 26, 2009 No. VAS-3334/09, Resolution of the Federal Antimonopoly Service of the Far Eastern District of December 16, 2008 No. F03-5362 / 2008, Federal Antimonopoly Service of the Moscow District of March 26, 2013 N A40-37553 / 12 -20-186).
It is paradoxical, but true - two letters from the Federal Tax Service support the second point of view: dated 03.09.2012. No. ОА-4-13/14633 and dated March 25, 2011 No. KE-3-3/926.
Therefore, in order to avoid conflict situations, it is better not to use the concept of “compensation of expenses”. And it is possible to reduce the accrued personal income tax from payments under a civil law contract through the provision of a professional tax deduction. About him a little later.
6. Standard tax deductions
When receiving income from the organization, the contractor - an individual, as well as a full-time employee, has the right to receive standard tax deductions - for himself or children (clause 4, clause 1, article 218 of the Tax Code). Contractor to claim submits an application and attaches documents confirming the right to deduction.
It doesn't matter if the individual works somewhere else or not. It has the right to apply for the deduction to any withholding agent that is its source of income payment, at its choice.
Standard deductions are provided only for the period for which the contract is concluded. Deductions are provided on a monthly basis, regardless of the months in which the remuneration itself was paid under the contract.
If an individual wishes to receive a deduction for a child, which is given before reaching an income of 350,000 rubles, then the tax agent has no obligation to check whether his income from other places of work exceeded this amount or not. Therefore, only what is paid by this tax agent is taken into account. And in an application for a deduction, an individual confirms that he does not use deductions for other sources of income.
For insurance, you can ask the contractor to provide: a copy of the work book, from which it is clear that there are no labor relations at the moment, or a certificate in the form 2-NDFL, if the individual is employed and this can be seen from the work book.
On the topic of providing standard deductions to the contractor, see: letter of the Federal Tax Service for Moscow dated 06/01/2010. No. 20-15 / 3 / 057717, letter of the Ministry of Finance dated 04/07/2011 No. 03-04-06 / 10-81.
7. Professional tax deduction
In addition to the standard tax deduction, the contractor can take advantage of the professional deduction, which includes all costs associated with the performance of obligations under a contract(Clause 2, Article 221 of the Tax Code). When performing work or providing services, these costs must be documented.
The deduction is based on contractor's application (in any form), to which documents are attached confirming expenses (waybills, checks of CCP and commodity, receipts, etc.). The main requirement for documents is confirmation of the type of costs, their payment and connection with the work performed (services rendered).
When an individual receives a professional personal income tax deduction, the personal income tax will actually be withheld from the difference between the amount under the agreement (tax base) and the amount of expenses in the form of a deduction. An example is at the end of the article.
Please note that a professional tax deduction for personal income tax from payments under a civil law contract can be obtained:
- only on income taxable at a rate of 13% (except dividends), clause 3 of article 210, clause 1 of article 224 of the Tax Code. Therefore, only residents of the Russian Federation can count on the deduction.
- only under contracts for the performance of work and the provision of services (as well as under contracts for the author's order). For other types of contracts (rental of residential premises, lease), no deduction is provided (letter of the Ministry of Finance dated 15.11.12 No. 03-04-05 / 4-1286).
8. Accounting for payments and withholding of personal income tax
For the purposes of accounting for settlements with contractors and performers who are individuals, account 76 is used, sub-account "Settlements with various debtors and creditors". The accrual of remuneration is reflected in the credit of this account in correspondence with the cost account, depending on the purposes for which the work was performed and services were provided:
Debit 20, 23, 25, 26, 44, 91/2 - Credit 76
This posting is made on the date of drawing up the act of services rendered (work performed). She tells us that our costs have increased and the accounts payable to the contractor (contractor) have increased.
Withholding personal income tax is reflected by the wiring:
Debit 76 - Credit 68
The debt to the contractor minus personal income tax must be paid. This can be done from a current account or from a cash register:
Debit 76 - Credit 51, 50
Example
LLC "Mega-circulation" for the design of the album "Beauty of Krasnodar" under a contract for the performance of work attracted a designer - an individual Kraskin Kirill Konstantinovich. The deadline for completing the work is from June 1 to July 27, 2016.
Payment for the services of the contractor under the contract amounted to 20,000 rubles. The contractor was paid an advance on July 4 from the cash desk in the amount of 8,000 rubles.
The work was completed and an act of completed work was signed on July 27. The balance of payment under the contract was transferred from the organization's settlement account to the contractor's bank account on July 29.
Kraskin also wrote an application for a standard tax deduction for a child in the amount of 1,400 rubles. per month and a professional tax deduction in the amount of 3000 rubles. (acquisition of photographs to illustrate the album). Supporting documents for deductions are available.
Debit 76 - Credit 50 - in the amount of 6960 rubles. - an advance payment was issued from the cash desk minus the withheld personal income tax (8000 - 8000 * 13%)
Debit 76 - Credit 68 - in the amount of 1040 rubles. - withheld personal income tax
Debit 68 - Credit 51 - in the amount of 1040 rubles. - transferred personal income tax to the budget
Debit 20 - Credit 76 - in the amount of 20,000 rubles. - accrued remuneration under the contract
We calculate the personal income tax that remains to be withheld, taking into account the deductions provided:
(20,000 rubles - 1400 rubles * 2 months - 3000 rubles) * 13% - 1040 rubles. = 806 rubles.
Debit 76 - Credit 68 - in the amount of 806 rubles. - withheld personal income tax
The balance payable under the agreement: 20,000 - 8,000 - 806 = 11,194 rubles.
Debit 76 - Credit 51 - in the amount of 11,194 rubles. – transferred the balance under the contract to the bank account of the contractor
Debit 68 - Credit 51 - in the amount of 806 rubles. - transferred personal income tax to the budget
Also, according to the results of July, it is necessary to accrue and pay insurance premiums. But this is a topic for a separate discussion.
9. Accrual of personal income tax under a contract in 1C
For those who keep records in the 1C: Accounting program - see the calculation of personal income tax from payments under a civil law contract in 1C: Accounting in video format.
What problematic issues regarding the accrual and withholding of personal income tax from payments to the contractor (performer) do you have? Ask them in the comments!
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