The contract of paid provision of services is regulated by Article 779 of the Civil Code of the Russian Federation.
Its essence is that one side -Executor - undertakes, on the instructions of the other party - the customer - to carry out certain activities within the agreed period. The customer, in turn, undertakes to pay for this activity.
When drawing up a contract on paid services, it is important to correctly formulate its subject matter, since taxation depends on this.
Subject of the contract on paid provision of services
Since the Russian tax legislationThe performance of work and the provision of services are taxed in different ways, when drafting a contract it is important to correctly formulate its subject matter. So, work is an activity, the result of which has a material expression and it can be realized. The service, according to Article 38 of the Tax Code, recognizes activities that have no material expression, the results of which can be realized and consumed during the implementation of this activity.
To these types of civil agreementsIs the provision of communication and training services, as well as medical, veterinary, consulting, audit, information, etc. You should also take into account that contracts for provision of services can not be concluded in such areas as:
- bank accounts and deposits
- trust management of property-
- performance of research, development and technological works-
- transportation and transport expedition-
- calculations, storage, commission, commissions.
On how the treaty will formulate itSubject, will depend on how it will be necessary to issue documents confirming its implementation. In order to avoid unnecessary questions among tax officials, it is better not to use foreign words and terms - coaching, training, etc., while choosing the subject of the contract, but to choose the appropriate value and the list of services listed in the Tax Code. In the event that no similar values are found, give a clear and detailed description of the subject of the contract, so that there is no doubt about the need for this type of services to improve the efficiency of your company's core business.
What else to look for
Since this type of civil law contractsReduces the indicator such as profit, the tax authorities very scrupulously check the necessity of their conclusion. To avoid unnecessary questions, give not only a clear wording to the subject of the contract, but detail the composition and volumes of services provided.
In the text of the treaty or in the annex to itIt is necessary to specify those quality criteria, according to which the services will be evaluated. A document that confirms the fact of the performance of the contract and the provision of services is a bilateral act. It is necessary that the amounts paid by the company under the contract are correctly reflected in the accounting documents, and you could easily justify the expenses incurred and the correctness of the calculation of the profit tax.