Accrual of funds under GPC agreements. Civil contract: personal income tax and contributions

What taxes and insurance premiums are payable under a civil contract?

Personal income tax on payments under civil contracts

Remuneration under a contract is the income of an individual that he receives from the organization, therefore, by virtue of paragraphs. 6 clause 1 art. 208 of the Tax Code of the Russian Federation, such income is subject to personal income tax.

If we are talking about tax in relation to an individual who is not an individual entrepreneur, then the organization (tax agent) paying the remuneration to the individual must calculate, withhold and transfer personal income tax on the amounts of remuneration paid. Tax legislation provides for liability for failure to comply with this requirement.

If an organization cooperates with an individual entrepreneur, then it should not withhold personal income tax from the remuneration amount. In this case, the organization is not recognized as a tax agent.

If the individual entrepreneur is on the general taxation system, then on the basis of Art. 227 of the Tax Code of the Russian Federation, he pays personal income tax independently.

Individual entrepreneurs under special tax regimes (STS, UTII) do not pay personal income tax on income received from business activities. From paragraph 3 of Art. 346.11 and paragraph 4 of Art. 346.26 of the Tax Code of the Russian Federation it follows that taxes paid in accordance with these special regimes replace personal income tax on income received from business activities.

The contract must indicate that the contractor is an individual entrepreneur, that is, indicate the details of the individual entrepreneur’s certificate in the preamble of the agreement and attach a copy of the certificate to the contract. Then the inspectors will not have questions about why the tax was not withheld, and the amount of remuneration was transferred to the counterparty in full.

Tax deductions

Ch. 23 of the Tax Code, which regulates the rules for calculating and paying personal income tax, provides taxpayers with the opportunity to receive certain tax deductions.

- Professional tax deduction

Performers receiving income from performing work (providing services) under civil contracts have the right to take advantage of the professional tax deduction provided for in Art. 221 of the Tax Code of the Russian Federation, in the amount of documented expenses. That is, an individual with whom an organization cooperates under a civil law agreement can receive a tax deduction by confirming his expenses that he incurred under a civil law agreement. This is one of the options for how you can arrange a trip that is necessary as part of the fulfillment of an obligation under a civil contract (unlike an employment contract, a civil contract does not use the wording that the contractor can be sent on a business trip with payment for his travel and etc.).

Since all deductions provided for in Ch. 23 of the Tax Code are provided at the request of the taxpayer, then in order to exercise the right to a professional tax deduction, the contractor must provide the appropriate application and documents confirming expenses to the tax agent.

- Standard tax deduction

The organization has the right to provide the performer (contractor) of work under a civil contract with standard tax deductions provided for in Art. 218 of the Tax Code, if his income is subject to personal income tax at a rate of 13% (clause 3 of Article 210 and clause 1 of Article 224 of the Tax Code of the Russian Federation).

According to paragraph 3 of Art. 218 of the Tax Code of the Russian Federation, standard tax deductions are provided to the taxpayer by one of the tax agents who are the source of payment of income, at the taxpayer’s choice based on his written application and documents confirming the right to such tax deductions. In fact, the taxpayer’s choice in this case will be formalized by his application for such a tax deduction.

- Property tax deduction

Property tax deductions in connection with the purchase of housing can only be provided by employers. It can be received either at the end of the tax period or during the tax period through the employer.

Within the framework of a civil law contract, the customer does not have the right to provide such deductions to the contractor, even if he is a tax agent (clause 8 of Article 220 of the Tax Code of the Russian Federation).

Insurance contributions to funds

Contributions for injuries

As follows from paragraph. 4 paragraphs 1 art. 5 and , the organization must pay these contributions from the remuneration of the contractor under a civil contract only when this is expressly provided for in the contract.

Accounting as part of income tax expenses

Depending on the status of an individual, expenses will be taken into account on the basis of various standards and as part of certain types of expenses provided for in Chapter. 25 Tax Code of the Russian Federation.

Performer (contractor) is a citizen who is not an individual entrepreneur and is not on the staff of the organization.

In this case, the tax code includes such expenses in Art. 255 of the Tax Code of the Russian Federation (“Labor expenses”). These expenses qualify as the organization’s labor costs and are taken into account on the basis of clause 21 of Art. 255 Tax Code of the Russian Federation.

Performer (contractor) is an individual entrepreneur who is not on the staff of the organization.

Payments under civil contracts in favor of individuals with the status of individual entrepreneurs with whom the company does not have labor relations are reflected as part of other expenses associated with production and sales. Basis - pp. 41 clause 1 art. 264 Tax Code of the Russian Federation.

The performer (contractor) is a full-time employee.

The Ministry of Finance of the Russian Federation in its clarifications (Letters of the Ministry of Finance of Russia dated September 21, 2012 No. 03-03-06/1/495, dated August 19, 2008 No. 03-03-06/2/107, dated March 27, 2008 No. 03-03-06/ 3/7) proposes to take these costs into account as other costs associated with production and sales, based on paragraphs. 49 clause 1 art. 264 Tax Code of the Russian Federation.

Expenses under civil law contracts must comply with the general criteria for recognizing expenses, which are contained in clause 1 of Art. 252 of the Tax Code of the Russian Federation. They must be documented, economically justified and aimed at making a profit. Otherwise, during control activities, the tax authorities will try to remove these expenses.

If a company has entered into a GPC agreement with an employee, it will pay taxes and contributions in 2017 itself. How to withhold personal income tax and what contributions to calculate, read the article.

Work under a GPC agreement: who pays taxes

If the executor under the GPC agreement is an individual, payments for are considered his income and are subject to personal income tax (subclause 6, clause 1, article 208 of the Tax Code of the Russian Federation). Let us remind you that we are talking about individuals who are not registered as entrepreneurs. Therefore, in relation to the contractor, you are recognized as a tax agent (Article 226 of the Tax Code of the Russian Federation). Therefore, when transferring remuneration, you are obliged to withhold personal income tax and transfer it to the budget.

Based on the above, payments under the GPC agreement set taking into account personal income tax.

Please note: you do not have the right to shift the responsibility for paying personal income tax to the contractor himself. You also cannot pay the tax using your own funds. This is directly provided for in paragraph 9 of Article 226 of the Tax Code of the Russian Federation.

Important!
Taxes and contributions in 2017 under a civil contract with an individual Only the company pays. It is illegal to shift the responsibility for paying personal income tax onto a person in this case.

How to reflect remuneration under GPA in 6-NDFL

How to save on taxes and contributions under a civil law agreement

Personal income tax under a civil contract can be calculated not from the entire amount of remuneration, but minus the standard and professional deduction. Insurance premiums of the GPC agreement are subject to depending on whether the performer is insured against accidents.

Standard and professional personal income tax deduction reduces the taxable base

The contractor has the right to receive professional and standard deductions for personal income tax (clause 3 of article 210 of the Tax Code of the Russian Federation). The professional deduction includes all the contractor’s expenses associated with the fulfillment of his obligations specified in the contract (Clause 2 of Article 221 of the Tax Code of the Russian Federation). Please note that the contractor must document these costs.

You can provide a professional deduction to your contractor based on his application. Let him write it in any form and attach the relevant documents confirming the expenses. Such documents can be invoices, cash register receipts, sales receipts, copies of travel tickets, hotel bills, etc. The main thing is that they confirm that the contractor’s costs are related specifically to the performance of work under the contract with you.

Example 1:

The company applies UTII. On September 4, 2017, a GPC agreement was concluded with A.I. Mikhailov. The subject of the contract is the translation of technical documentation for the customer’s equipment into Russian. The cost of work is 5600 rubles.

On September 11, 2017, the work was completed. An act of acceptance and transfer of work was drawn up between the parties. A.I. Mikhailov wrote an application asking for a professional tax deduction in the amount of 1,050 rubles. He spent his money on purchasing specialized literature, which he used for translation. In support of the expenses of A.I. Mikhailov presented the organization with a cash register receipt from the bookstore.

We will calculate personal income tax on the remuneration provided for in the contract. The tax base for personal income tax is 4,550 rubles. (5600 rub. -1050 rub.). The personal income tax amount is 592 rubles. (RUB 4,550 × 13%). The company will transfer this amount to the budget. Thus, A.I. Mikhailov will receive 5,008 rubles for performing work under the contract. (5600 - 592).

A contractor can claim a standard tax deduction if he has children (subclause 4, clause 1, article 218 of the Tax Code of the Russian Federation). To receive it, the contractor also provides you with:

• statement;
• documents confirming the right to deduction.

Let us remind you that a contractor can receive a child tax deduction until his income reaches 350,000 rubles. But your contractor is a third party. And you don't have accurate data on his income since the beginning of the year. How to provide standard deductions in this case? The answer to this question was given by the Russian Ministry of Finance in a letter dated 04/07/2011 No. 03-04-06/10-81. Thus, officials believe that standard deductions should be provided only for those months in which construction contracts were valid.

Attention!
If you register

Please note that your contract agreements may last for several months. Moreover, under the terms of the contracts, remuneration is paid in a lump sum (for example, at the end of the validity period). In this case, standard deductions are provided for each month of contract validity, including those months in which remuneration was not paid.

Example 2:

Let's use the data from example 1 and assume that A.I. Mikhailov has one child (12 years old). To receive a standard deduction, the contractor wrote an application indicating that he does not work for other organizations. He also noted in the statement that his total income since the beginning of 2017 did not exceed 350,000 rubles. The contractor did not apply for a professional deduction.

We will calculate the personal income tax payable to the budget. The tax base for personal income tax is 4,200 rubles. (5600 rub. - 1400 rub.). The personal income tax amount is 546 rubles. (RUB 4,200 × 13%). The company will transfer this amount to the budget as a tax agent. Thus, A.I. Mikhailov will receive 5,054 rubles for performing work under the contract. (5600 - 546)".

Social contributions under the GPC agreement in 2017 not needed, no contribution for injuries required

Payments under a GPC agreement are subject to insurance premiums differently than under an employment contract.

Contributions from civil contracts 2017 for insurance against accidents and occupational diseases, you must accrue and accordingly transfer to the budget of the Social Insurance Fund of the Russian Federation only if this is provided for in the contract. And if there is no such condition in the agreement, then you do not have an obligation to pay contributions (paragraph 4, paragraph 1, article 5 and paragraph 1, article 20.1 of the Federal Law of July 24, 1998 No. 125-FZ).

Social insurance contributions under GPC agreements in 2017 are not accrued at all (subclause 2, clause 3, article 422 of the Tax Code of the Russian Federation).

Read more about calculation of contributions under civil law contracts We'll tell you in the next section.

What insurance premiums are charged under GPC agreements?

Insurance premiums must be calculated on the remuneration provided for in a civil contract, the subject of which is:

• performance of work (provision of services);
• execution of an author's order, transfer of copyright, granting rights to use works

This procedure follows from paragraph 1 of Article 420 of the Tax Code of the Russian Federation.

Everyone is like that GPC agreements are subject to insurance premiums in 2017:

• for pension insurance;
• for health insurance.

For GPC, the percentage of insurance contributions is the same as for remuneration provided for in an employment contract: 22 percent for pension insurance, 5.1 percent for medical insurance.

(We talked about the social contribution and the “injury” contribution in the previous section).

Pay the contribution on the same day as the contractor's remuneration. This date will be the earliest of the following dates:

• date of payment of remuneration to the contractor in advance;
• date of signing the certificate of work performed (services rendered).

Attention!
If you register on the Glavbukh website you will have access to all the resources of our portal: any articles, questions and answers, sample forms, documents, unique services and calculators. Registration takes no more than 1 minute.

Contribution under the GPC agreement according to additional tariffs

Calculation of mandatory pensions contributions for GPC in 2017 at additional rates depends on two important conditions:

• whether the income is subject to contribution taxation;
• what job does the individual do?

The contribution for additional tariffs must be calculated on the income of persons employed in the work listed in paragraphs 1-18 of part 1 of Article 30 of the Federal Law of December 28, 2013 No. 400-FZ “On Insurance Pensions” (hereinafter referred to as Law No. 400-FZ). Lists of hazardous jobs, industries, professions, positions, and specialties are approved by the Government of the Russian Federation (Part 2, Article 30 of Law No. 400-FZ).

Are they taxable? payments for GPC insurance premiums for additional tariffs, let’s look at two situations as examples.

The contractor does not work for the company

Let us assume that there is no labor relationship between the contractor and the customer. There is only a civil contract for performing one-time work. The end result is important to the customer. He does not evaluate under what conditions the performer will achieve it, or whether he will use personal protective equipment. The contract with the customer may contain a statement that the contractor may involve subcontractors to perform the work (Clause 1, Article 706 of the Civil Code of the Russian Federation). In this case, the customer does not have an obligation to charge insurance premiums for GPC in 2017 at an additional rate.

Example 3:

On May 12, PJSC Argon entered into a contract agreement with I.I. Svistunov to work on the manufacture of a special metal grating for use in the reinforcement shop. The contract does not specify the specifics of the work or the place where it will be performed. The contractor drew up a drawing and agreed it with the customer. Remuneration for work - 23,000 rubles. According to the contract, the contractor has the right to involve third parties in the work. Working conditions at all workplaces in the reinforcement shop were recognized as harmful.

It is impossible to classify the contractor’s activities for the purpose of fulfilling work contracts as the work listed in paragraphs 1–18 of Part 1 of Article 30 of Law No. 400-FZ. Therefore, the contractor’s remuneration does not need to be subject to additional pension contributions. But for this payment the company must charge insurance premiums in the amount of:

• 5060 rub. (RUB 23,000 × 22%) - for compulsory pension insurance;
• 1173 rub. (RUB 23,000 × 5.1%) - for compulsory health insurance.

Insurance premiums for GPC in case of temporary disability and in connection with maternity are not accrued.

Performer - employee of the organization

An employee can perform work under an employment and civil law contract in the same premises and under the same conditions. Should the pension contribution be calculated at additional rates if the working conditions of the main job are considered harmful?

GPA contributions for individuals- employees need to be paid. Since the employee’s main job is listed as employed in the jobs listed in paragraphs 1-18 of part 1 of Article 30 of Law No. 400-FZ. This approach is consistent with the position of the Russian Ministry of Labor.

Example 4:

At Argon PJSC, the main place of work is an assembler of steel and reinforced concrete structures (position code from List No. 2 - 2290000a-14612). This profession refers to the work listed in paragraphs 1-18 of part 1 of article 30 of Law No. 400-FZ. Based on the results of a special assessment, the employee’s workplace was found to be hazardous (subclass 3.2). The employee's salary is 42,000 rubles. per month.

The company administration decided to repair the heating system in the fittings shop in the summer of 2017. During the repair, the need for welding work arose. Z.P. agreed to carry them out. Mitkevich. He has the necessary skills. On May 12, 2017, the company entered into a contract with Z.P. Mitkevich contract for work on electric welding of heating systems. Remuneration for work - 23,000 rubles.

Working conditions at all workplaces in the reinforcement shop are recognized as harmful, but no special assessment is carried out for work under a contract. For the purposes of pension insurance, they cannot be classified as harmful or dangerous. However, as part of his main job, the employee was engaged in hazardous work. Payments in his favor (salary and remuneration under a contract) are subject to insurance contributions to the Pension Fund at an additional rate of 4% (Part 2.1 of Article 58.3 of Law No. 212-FZ). The total amount of taxable payments was 65,000 rubles. (42,000 + 23,000). The company must accrue pension contributions on this amount at an additional tariff at a rate of 4% in the amount of 2,600 rubles. (RUB 65,000 × 4%).

Should I pay in advance? civil law agreement taxes and contributions in 2017

If contract agreements provide for the issuance of an advance, calculate insurance premiums from this amount and withhold personal income tax. Although in the case of personal income tax there is an exception.

Personal income tax from advance payment according to GPA

In cases where the contractor is a full-time employee and when a third party, personal income tax is withheld differently.

The contractor is not an employee of the company. Withhold personal income tax directly when transferring the advance to the contractor. Indeed, paragraph 4 of Article 226 of the Tax Code of the Russian Federation does not establish any restrictions on the types of income from which tax should be withheld. This was also indicated by the Russian Ministry of Finance in letter dated May 26, 2014 No. 03-04-06/24982. In addition, financiers have noticed that the amounts of advances paid under a civil law agreement are included in the income of the period in which they were paid, regardless of the tax period in which the work will be performed (services provided).

The contractor works for you under an employment contract. At the time of transferring the advance, you do not have to withhold personal income tax. This is due to the fact that when paying wages, income arises on the last day of the month for which it was accrued (clause 2 of Article 223 of the Tax Code of the Russian Federation). Therefore, you must withhold tax on the last day of the month.

If for some reason you cannot withhold personal income tax when issuing remuneration, notify the contractor and the tax office at your place of registration (clause 5 of Article 226 of the Tax Code of the Russian Federation). You have a month to do this after the end of the calendar year in which you entered into GPC agreements. Tax authorities should be notified of the impossibility of withholding personal income tax using Form 2-NDFL.

Insurance premiums for GPA in 2017 if the performer receives an advance

Civil contracts, the subject of which is the performance of work (provision of services), may provide for any form of settlement between the customer and the contractor: stage-by-stage, with payment of an advance, upon completion of the work (term of validity of the contracts), etc. (Clause 4 of Art. 421 of the Civil Code of the Russian Federation). However, Chapter 34 of the Tax Code of the Russian Federation does not contain any relationship between the methods of payment for work (services), the timing of their completion (rendering) and the date of inclusion of payments in the calculation base for insurance premiums.

Thus, neither advances for the upcoming performance of work (provision of services), nor stage-by-stage payments are no different from other payments and remunerations for which the organization is obliged to charge insurance premiums (Article 420 of the Tax Code of the Russian Federation). Include the amounts of advances issued (staged payments) in the calculation base for insurance premiums on the last day of the month in which these amounts were accrued.

If in the future, for some reason, the contractor returns the advance payment, the organization will have an overpayment of insurance premiums, which can be offset against future payments or returned to the current (personal) account.

Accounting for payments under the GPC agreement

Postings for reflecting costs under a civil contract in accounting are shown in the table below.

Wiring	Contents of operation	Primary document
Dt 26 (44) Kt 60 (76)	Remuneration accrued to the contractor	Contracts, acceptance certificate of completed work
Dt 26 (44) Kt 69	Insurance premiums have been calculated for the amount of remuneration	Accounting certificate-calculation
Dt 60 (76) Kt 68	Personal income tax withheld from remuneration	Tax card
Dt 60 (76) Kt 50	The remuneration amount was paid to the contractor	Account cash warrant
Dt 68 Kt 51	Personal income tax from remuneration is transferred to the budget	Bank account statement

To perform one-time work, you can hire an employee and enter into a GPC agreement with him. Taxes, like for any employee, will need to be withheld and contributions transferred. The only thing that a GPH agreement will allow you to save on is contributions to the Social Insurance Fund; there is no exception for taxes.

If you run your business in Elba, then, of course, you are aware that Elba keeps records of both full-time and part-time employees, including those working under GPC contracts. Accordingly, Elba also makes all calculations in terms of taxes and deductions. However, how to draw up a GPC agreement? Sometimes you need the simplest one, sometimes an employee comes with whom you need to separately discuss and write down the conditions, but you never know what happens, that’s why they are GPC agreements, to draw them up individually. Looking for samples, changing samples is far from the best option, neither in terms of convenience, nor in terms of proper compilation. After all, a contract is a legally significant document and must be taken seriously. Therefore, you can recommend your review to the legal web service “Documentoved”, the most popular and widespread in Russia, and, in fact, has no analogues; tens of thousands of enterprises across the country go through it every year. This is a very convenient and reliable way, in addition to excellent interactivity when working with documents, you can contact both the legal framework and service consultants!

GPC agreement – ​​taxes and fees

For an employee with whom a GPC agreement is concluded, the company is obliged to transfer taxes as a tax agent. We are talking about personal income tax. Personal income tax is withheld at the following rates:

• 13% - for residents;
• 30% - for non-residents.

Tax must be withheld and transferred on the day the employee is paid remuneration, in the amount prescribed in the civil law agreement. To avoid misunderstandings, when concluding an agreement between the parties, it is better to write down the withholding of personal income tax as a separate clause. As practice shows, when agreeing on a price for work, employees lose sight of the fact that tax must be withheld from the amount due to them. If a civil law agreement is concluded with an individual entrepreneur, he must pay income tax on his own behalf.

The employer must transfer insurance contributions for compulsory pension and health insurance to the Pension Fund of the Russian Federation even when a GPC agreement is concluded. Taxes are withheld from the employee, and the company pays contributions “out of its own pocket.” If payments to the Pension Fund must be made, then to the Social Insurance Fund - at the discretion of the customer. There is no need to pay premiums for disability and maternity insurance, and the employer can pay for injuries on his own initiative. But the desire to insure your employee against an accident at work must be stipulated in writing as a separate clause in the GPC agreement. Only then, upon the occurrence of an insured event, will the employee be able to receive social benefits.

GPC agreement – ​​taxes for the employer

All expenses of the organization must be economically justified. Only in this case the tax base is reduced. This should be kept in mind when concluding a GPC agreement. The taxes that a company pays based on financial results (profit or simplified tax system) can be reduced by justified and confirmed costs. What does it mean? Firstly, a civil law agreement must be drawn up in accordance with the Civil Code of the Russian Federation. Otherwise, it will be invalid and you will not be able to recognize expenses on it. Secondly, the GPC agreement should not have any signs of an employment contract. Otherwise, the employee will be recognized as a full-time employee, and additional contributions to the Social Insurance Fund and penalties will be added to his earnings. Thirdly, the agreement can only be concluded with a freelance employee. In this case, when a GPC agreement is concluded, the simplified tax system tax cannot be reduced by the expenses incurred. Some time ago, this requirement was also relevant for income tax. The Ministry of Finance in its letters dated 08/22/2007 No. 03-03-06/4/115 and dated 03/27/2008 No. 03-03-06/3/7 clarified the situation and it was decided to include expenses under civil contracts with staff employees as part of others. When concluding an agreement for contract work with an employee who is already fulfilling his duties under an employment contract, the following points must be taken into account:

• the work in the GPC agreement must differ from its functions prescribed in the employment contract;
• the work specified in the GPC agreement must directly relate to the activities of the organization;
• Upon completion of the work, the parties must sign the acceptance/transfer certificate.

A civil contract is a fairly common manifestation of legal relations nowadays. In this article, we will consider issues related to the taxation of payments under a GPC agreement in favor of one of the parties to the agreement, as well as the tax that must be accrued and paid to the budget of the Russian Federation.

Legislative regulation of the issue

Legislative regulation of the issue is determined by the Tax Code of the Russian Federation, Articles 208, 207 and, in general, Chapter Twenty-Third of the Tax Code of the Russian Federation, which is called Personal Income Tax.

What is a GPC agreement

A civil law agreement is a formalized legal relationship between two parties - a legal entity or an entrepreneur with an individual. That is, under such an agreement an individual provides any services to an organization or individual entrepreneur.

Important! A GPC agreement can be concluded by an enterprise with an individual.

Income tax on payments under GPA

Under such an agreement, an individual receives remuneration - payment for his work. And according to Article 207 of the Tax Code of the Russian Federation, the organization must calculate and withhold personal income tax from the citizen’s income. If this is not done, the tax office may impose a fine and hold the organization accountable. Even if the GPC agreement contains a clause stating that an individual calculates and pays income tax independently, this clause will be considered void from the point of view of Russian legislation.

Important! When concluding an agreement for the provision of services with another organization or individual entrepreneur, the organization does not have the obligation to transfer personal income tax.

Are deductions applied for children under GPA?

When calculating personal income tax on income paid under a GPC agreement, it is possible to apply standard tax deductions. In order to take advantage of the deduction, an individual must submit an application requesting the deduction for children. Supporting documents for deductions will be children's birth certificates and/or a certificate from the child's place of study (if he has reached 18 years of age, but continues full-time studies at an educational institution). The standard child tax deductions are as follows:

• For the first and second child - 1,400 rubles per month for each;
• For the third and subsequent ones - 3,000 rubles each.

Important! Deductions are applied monthly on an accrual basis throughout the year.

Insurance premiums

Insurance contributions for compulsory pension, medical and social insurance also in most cases need to be calculated and paid to the budget when making payments under the GPA. True, there are exceptions to this rule (for example, in a lease agreement for space owned by an individual and rented by a legal entity or entrepreneur, payments will be subject to personal income tax and will not be subject to insurance contributions). Insurance premiums for accidents and occupational diseases are not obligatory to pay, but their calculation and payment are possible; to do this, you need to indicate this condition in the GPC agreement.

Accrual of personal income tax entries in accounting

To calculate personal income tax, account 68 is used in accounting. The accrual will be reflected in the credit of account 68, and the payment in the debit of account 68.

Example 1.

Astra LLC entered into a GPC agreement with M.M. Ivanov. in the amount of 10,000 rubles. Ivanov wrote an application for standard tax deductions, since he has one child, 5 years old. On March 29, an act of provision of services was signed between Astra LLC and M.M. Ivanov. On April 30, the organization paid 8,882 rubles from the cash desk under this agreement, withholding personal income tax, which was calculated as follows: 10,000-1,400 = 8,600 rubles - the taxable amount. 10000 – (8600*13%)=8882 rubles - amount to be paid. Personal income tax 8600*13%=1118 rubles. The postings for these transactions will be as follows:

Debit 25,26,20 Credit 76 10,000 rubles

Debit 76 Credit 68 1118 rubles

Debit 76 Credit 50 8882 rubles

Credit 68 Debit 51 1118 rubles.

When to transfer personal income tax on income arising from GPA

Personal income tax on income that is paid for services and work under a GPC agreement is transferred no later than the next day after the day on which they were paid. This is stated in paragraph 6 of Article 226 of the Tax Code. Income must be withheld when income is paid.

How to reflect personal income tax according to the GPA in the 6-NDFL declaration

In the 6-NDFL report, payments are reflected in the first section in full, along with accrued wages at the enterprise. In the second section, each payment should be highlighted in a separate line. This is due to the fact that payments under the GPA have a date of receipt of income and a tax withholding date different from wages. Payments under the GPA have the date of receipt of income and the date of tax withholding equal to the day of actual payment of money to an individual, and the date of transfer of tax is the next business day. Let's look at an example.

Example 2.

Astra LLC accrued remuneration under the GPD to Ivanov I.T. January 20, 2018 in the amount of 10,000 rubles. On January 25, 2018, the remuneration was paid to Ivanov I.T. In the amount of 8700 rubles. On the same day, personal income tax was withheld from a payment of 1,300 rubles. Personal income tax must be transferred no later than January 26. The following entry must be made in the 6-NDFL report:

date receiving income	date retention tax	Term payment tax	Amount of income received	Payment amount according to the report
100	110	120	130	140
Total			30000.00	3900
31.01.18	12.02.18	13.02.18	20000.00	2600
25.01.18	25.01.18	26.01.18	10000.00	1300

For clarity, in the example we indicated the salary for January accrued to the company’s employees and paid on February 12, 2018.

Important! Lines 110 and 120 of the 6-NDFL report must indicate the date of actual payment of remuneration, and line 130 the number following this date. On lines 130 and 140 - the amounts of income and personal income tax, respectively.

There are several differences between employment and civil law contracts, including in the principles of calculating taxes and contributions. A GPC agreement can be concluded between citizens and organizations. This agreement implies the execution of a transaction, the direct participants of which are the customer and the contractor.

Definition

The concept of this form of civil contract is defined in the Civil Code of the Russian Federation. According to Article 420, the term means a contract concluded between two or more persons, and establishing the rights and obligations of the parties, regulations for changing or terminating liability. The terms of the GPC agreement are determined voluntarily at the discretion of all participants, except in cases where such conditions are prescribed by law or other regulatory documents.

The GPC agreement is a very popular legal form, since it fully corresponds to the nature of property and non-property relations regulated by civil law in the market commodity-money category. Such legal relations presuppose the independence and initiative of both subjects. In addition, GPC agreements are not characterized by imperative legal regulation.

At first glance, a civil law contract is not much different from an employment contract. Both documents are forms of establishing economic relations between two subjects of legal relations. In addition, both types of agreement allow its participants to determine and agree on their mutual rights and obligations, taking into account the needs of the market, the individual needs of consumers and the capabilities of counterparties. Parties to employment and civil law contracts are obliged to pay taxes and contributions.

Individuals and legal entities that have entered into a GPC agreement pay taxes in full. Since a civil transaction involves the receipt of income by one of the parties, and any profit is subject to taxation, the participant in such legal relations is obliged to pay the appropriate fees to the state treasury. In addition to tax payments, none of the subjects of a civil contract are exempt from making insurance contributions to the Social Insurance Fund.

How is it different from an employment contract?

In comparison with the contractual relations that arise between an employer and an employee when drawing up a work book, GPC is characterized by a number of privileges. This is the main reason why employers choose this form of agreement. Sometimes it is simply not profitable for the customer to officially hire employees, so a GPC agreement is concluded. However, in this case, the employer faces a serious fine, because the executor under a civil agreement cannot be an employee. In addition to sanctions, a legal entity may be required to make additional payment of unaccounted payments for GPC (taxes, insurance premiums, penalties, etc.).

The principles of regulation of labor relations are set out in the Labor Code of Russia. Transactions made under a civil contract are regulated by the Civil Code of the Russian Federation, however, income received as a result of the transaction is also taxed. The GPC agreement has other features:

• the purpose of its preparation may be the fulfillment of obligations under a contract, the provision of services or the transfer of ownership rights to property for a certain time;
• lack of conditions applicable to an employment contract (fixed salary, staffing table, working time sheet, compliance with internal regulations);
• payment occurs only upon completion of work or provision of services, after their completion and signing of the acceptance certificate;
• the duration of legal relations is limited to a specific time period.

What payments are required?

Regardless of the taxation system chosen by the customer, payment of GPC taxes is an integral responsibility of any entity. As a rule, the taxpayer is the party to the contract who is the actual executor, that is, the person who receives the income. If there is a valid GPC agreement, taxes are most often paid by the person themselves. The amount of fees to be paid into the state budget is determined by the terms of the agreement. Moreover, both individuals and individual entrepreneurs must pay taxes and contributions under the GPC agreement. In both cases, it is necessary to calculate income tax and insurance contributions (social and pension insurance).

After the final execution of a civil law agreement, the employer (aka the customer) can pay taxes on his own, but this condition must be clearly stated in the text of the agreement. This also includes insurance of the contractor against accidents, injuries, and occupational diseases received on the territory of the enterprise.

There is no need to pay or withhold insurance premiums only if:

• the executor under the GPC is a legal entity;
• a foreign citizen or stateless person performs work or provides services outside the territory of the Russian Federation (Article 422, paragraph 15,422 of the Tax Code of the Russian Federation);
• We are talking about temporary disability and motherhood.

In addition, if the contractor receives compensation for his expenses from the customer, this amount will be deducted from the base for calculating taxes for GPC.

Types of agreements

A civil law agreement can take different forms. This is determined by the scope of work or services for which the customer turns to the contractor. Conventionally, two categories of agreements can be distinguished: contracting and provision of services.

In the first case, the subject of the contract is work or a specified amount of work that the contractor must perform for a fixed fee, after which he must report to the tax office on the profit received under the GPC agreement. What taxes to pay in each specific case depends on the terms of the contract.

By concluding a service agreement, the contractor undertakes to provide specific services. The customer pays based on the results of the work done or makes an advance payment if this is provided for in the GPC agreement.

What taxes does a contractor need to pay?

If the executor of the GPC is an individual, then the profit received should be subject to income tax in the usual way. For a contractor taxpayer, the standard rates are 13% or 30%. Who pays taxes under a GPC agreement? The answer to this question was given above: an individual must report to the tax office independently, unless the text of the agreement between the contractor and the customer stipulates that all payments are made by the employer. In this case, the contractor acquires the status of a freelance employee, paying taxes and fees for which, in accordance with Art. 208 of the Tax Code of the Russian Federation, the tax agent, that is, the customer company, is obliged.

The fee received by an individual for work done is not fully subject to income tax. By analogy with an employment contract, the contractor has the right to take advantage of tax deductions. The conditions for applying the “discount” are specified in Article 210 of the Tax Code of Russia. In addition, before using the right of deduction, the tax base is reduced by the amount of expenses that the performer had to incur. To do this, it is necessary to provide all checks, receipts and invoices confirming the fact that the contractor used his own funds.

Conditions for receiving a deduction

Now let’s figure out what taxes to pay under GPC and who has the right to save on these payments. First of all, individuals with dependent minor children can count on the deduction. However, such a privilege is valid only if the taxpayer’s annual income does not exceed 350 thousand rubles. As for any other deductions regulated by the Tax Code of the Russian Federation, they can be applied to the tax base for a limited period of validity of the contract. In this case, the fee is withdrawn from the income tax of an individual.

Otherwise, a “discount” is calculated for paying taxes under a civil partnership agreement, in which the executor is an individual entrepreneur by agreement of the parties. No payments are accrued under a civil agreement, since the status of an individual entrepreneur itself implies the maintenance of appropriate monthly, quarterly and annual reporting on the profits received. According to the taxation system used and the schedule for submitting reports to tax and insurance structures, the entrepreneur himself makes the required payments. The possibility of applying a deduction will depend on which taxation regime is used by the individual entrepreneur. For example, private entrepreneurs who work under the simplified system are exempt from paying personal income tax. Therefore, they have no basis for receiving business deductions.

Classification of tax deductions

When paying personal income tax, you should be guided by Chapter 23 of the Tax Code of the Russian Federation. This section contains provisions that determine what taxes under the GPC must be paid by the contractor, as well as the procedure for calculating them. The current legal norms that regulate the possibility of obtaining certain tax deductions are also presented here. To reduce the amount of the tax base, the taxpayer must provide an application for the exercise of his right to receive a deduction to the customer.

Professional

This type of deduction allows performers who had to incur expenses when performing work or providing services specified in the contract to be partially exempt from taxes under the civil process agreement. Article 221 of the Tax Code of the Russian Federation clearly states that the tax base can be reduced if there is documentary evidence of the expenses incurred. If an individual or individual entrepreneur can prove that spending his own funds was a necessary measure to comply with the obligations under the concluded agreement.

In this way, you can return the money spent during the trip necessary to carry out work under the GPC agreement. What the tax will be after deduction depends on the difference between the total income received for the completed transaction and the own funds spent. Unlike labor relations, for a civil agreement the possibility of sending the contractor on a business trip with compensation by the employer for travel, accommodation and other expenses is not applicable.

Standard

To obtain this tax deduction, the contractor must apply directly to the tax office. An individual or individual entrepreneur who has already paid tax at a rate of 13% has the right to claim a refund of personal income tax paid under a civil agreement. Individual entrepreneurs engaged in business activities under the simplified taxation regime are not entitled to a tax deduction.

This type of preference is provided for in Art. 218 Tax Code of the Russian Federation. In accordance with this norm, Chernobyl victims, veterans of the Second World War and other military operations, Heroes of the USSR, disabled people, and military personnel can apply for a deduction. A complete list of citizens entitled to receive benefits in the amount of 500 to 3000 rubles. for each month of the tax period, is present in the specified document. Performers under a GPC agreement who have minor children and disabled children also have the right to take advantage of the tax deduction, based on a written application and documents confirming the right to receive the benefit.

Social

What taxes are subject to a GPC agreement? As already noted, the performer must pay income tax in the amount of 13% of the profit received. Individuals and private entrepreneurs who spent their own funds during the reporting tax period on:

• charity (but not more than 25% of total annual income);
• education, including teaching your children under the age of 23;
• treatment, including medical costs for children, spouses, parents;
• pension contributions to non-state funds and replenishment of the funded part of the pension.

Property

Applies to those persons who sold or purchased real estate during the period of validity of the employment contract. By law, only employers can provide this type of tax deduction. Persons who have entered into an employment contract have the right to receive compensation for personal income tax both at the end of the tax period and during it. However, under a GPC agreement with an individual, the customer does not have the right to reimburse taxes to the contractor, even if he is a tax agent.

About insurance premiums

Having learned what taxes the GPC is subject to, it’s time to move on to the next type of mandatory payments. In addition to income taxes, the executor's responsibility is to make contributions to various organizations. Under civil law and labor contracts, fixed rates apply for calculating the amount of insurance premium. Mandatory social payments for individuals are calculated as follows:

• 22% of the full amount of remuneration, including income tax, is transferred to the Russian Pension Fund. This year the size of the insurance base is 1,021,000 rubles. If the profit is higher than this amount, an additional 10% will be charged.
• 5.1% is a social tax that goes to compulsory health insurance funds.
• 2-14% - the amount is calculated depending on the degree of threat to health and risk when performing the work or the working conditions of the performer.

As for insurance for temporary disability and injury, the organization pays these types of contributions from the performer’s fee under the civil process agreement only when this is expressly stated in the text of the agreement. If the activity in which the customer specializes involves the use of preferential rates for insurance premiums under civil contracts, then preferences will also apply when calculating payments to the state budget.

It is important to understand that customers withhold and transfer insurance premiums not to the funds, but to the account of the tax office. Insurance premiums and taxes for civil partnership with an individual are paid only if the existing agreement implies the obligation to perform contract work or provide unique, proprietary services. If a civil agreement is drawn up on the basis of a lease of premises or a cash loan, social contributions will not be transferred to the municipal budget.

Unlike a work contract, a transaction, the subject of which is not only the provision of services, but also the transfer of property rights, has some features when executed. Thus, the clause of the agreement on the receipt of income from the customer should be divided into two lines: the first indicates the remuneration that is subject to taxes and contributions, the second indicates financial receipts from which no fees are charged.

Who can apply for a reduction in the insurance base?

Just as in the case of taxes, when calculating the amount from which insurance premiums will be withheld and transferred, the base can be reduced subject to the deduction of expenses incurred by the executor. Most often, such a need arises when there is a formalized relationship under an agreement involving the payment of royalties or the acquisition of intellectual property rights. Any, even the most insignificant expenses, must have documentary evidence. If the contractor does not have the opportunity to provide all checks, invoices and other payments, the Tax Code provides for the possibility of writing off unconfirmed additional expenses in the following percentage:

• up to 20% on literature of artistic or scientific genre;
• up to 25% when writing musical works;
• no more than 30% when creating sculptures, illustrations, photographs;
• up to 30% for financing aimed at modernizing the production sector;
• maximum 40% when creating sculptural and decorative works, processing musical works for films, performances, operas, show ballets, etc.

Features of tax reporting under a GPC agreement

The conclusion of a civil law agreement presupposes the consent of both parties to withhold and transfer mandatory fees to the Federal Tax Service. In addition to fiscal reporting, the customer, who has the status of a legal entity, submits reports to the Pension Fund of Russia in the SZV-M form. This document specifies not only full-time employees, but also performers under GPC agreements. It is important to take into account that incorrect information in the report is the basis for the imposition of huge fines on the tax agent, since the instructions do not provide for the correction of errors in this document.

According to a similar principle, reports are transmitted in the form SZV-STAZH. A package of documents is sent to the Pension Fund for the previous reporting period no later than March 1 of the current year. Moreover, the information is provided on unified strict reporting forms corresponding to each individual form.

Drawing up civil law contracts is more preferable for employers, since when concluding an employment contract with an employee, he loses the opportunity to reduce the insurance and tax bases, as well as save on the payment of personal income tax transferred to the municipal budget.

At the same time, these privileges allow unscrupulous entrepreneurs to use the system of civil law relations to evade taxes. If such a violation is confirmed, the entrepreneur faces thousands of fines. That is why, when drawing up a GPC agreement, both the contractor and the customer need to carefully study the wording and conditions contained in the document.