Free provision of services between legal entities taxation


Information for the document

The procedure and conditions for concluding an agreement for the provision of services free of charge are not established by the current legislation of the Russian Federation. Compensation and gratuitousness of concluded contracts are stipulated in Art. 423 Civil Code of the Russian Federation.

Features of document preparation

  1. Completed sample order
  2. Contents of the agreement
  3. Responsibility of the parties
  4. Change and termination of the contract

Contents of the agreement

According to paragraph 2 of Art. 423 of the Civil Code of the Russian Federation, an agreement is recognized as gratuitous if the party receiving services or work under this agreement does not make payment or counter-provision of services to the other party.

As a rule, such agreements are concluded by charitable organizations, foundations and institutions whose activities are not related to making a profit. Since the contract is concluded in writing, the law has requirements for its content:

  • The subject of the contract is its essential condition - Art. 432 Civil Code of the Russian Federation
  • Since the gratuitous contract does not provide for payment, the contract must reflect the gratuitousness of the services provided.
  • Parties to the contract. The legislation does not directly prohibit the conclusion of this type of agreement between commercial enterprises, but the very type of their activity provides for the receipt of benefits. The conclusion of an agreement between individuals or an individual and a legal entity is not limited in any way.
  • Date and place of conclusion of the contract. If the contract does not indicate the place of its conclusion, then it is considered to be concluded at the place of residence of the person who sent the offer. If services are provided by a legal entity, then at the place of its registration - Art. 444 Civil Code of the Russian Federation.
  • Signatures of the parties with transcripts.
  • Obligations of the parties, namely the obligation to perform the services or work provided within the time period specified in the contract.

Important! Since a gratuitous contract cannot be recognized as a contract, it is advisable to reflect in the contract the consequences of violating the deadline for fulfilling the contract.

Responsibility of the parties

Despite the fact that the agreement for the gratuitous provision of services does not provide for payment or any other remuneration for its execution, the parties bear responsibility under the law for improper fulfillment of obligations - Chapter 25 of the Civil Code of the Russian Federation.

According to Art. 401 of the Civil Code of the Russian Federation, liability for failure to fulfill obligations under a contract occurs only if there is guilt or intent of the person who failed to fulfill the contract. The burden of proving the absence of guilt, in this case, rests with the offender. And an agreement concluded in advance regarding the absence of violation is considered void.

Since the contract is concluded free of charge, payment of a penalty or compensation for damages in case of non-fulfillment is not provided, however, the party that has not fulfilled the obligation is not exempt from fulfilling it in kind - Art. 396 of the Civil Code of the Russian Federation.

Change and termination of the contract

Article 450 of the Civil Code of the Russian Federation provides the grounds on which an agreement can be amended and terminated:

  • By agreement of the parties.
  • At the request of one of the parties, the contract is changed or terminated only by a court decision.

A court decision to change the terms of the contract or terminate it can be made only if there are significant violations of the contract by one of the parties, as well as in other cases provided for by current legislation for certain types of contracts.

The consequences of changing and terminating the contract are listed in Art. 453 Civil Code of the Russian Federation:

  • Changing the contract entails changing the obligations under it.
  • Termination of the contract entails the termination of obligations, unless otherwise provided by legislative acts or follows from the essence of the concluded agreement.
  • The term for changing or terminating obligations is considered to be the period by which the agreement to change or terminate the contract was signed.

The legislation provides for compensation for losses if a change or termination of the contract entails their occurrence.

What must be included in the document?

Before signing an agreement, you must pay attention to whether it contains certain data that can fully characterize the property that is being transferred or given completely free of charge to another person.

Such information can perfectly serve as what this item consists of, where it is located (if it is a plot of land, a house, etc.). If the contract is drawn up to indicate free services, then it must contain data about these services that must be provided (list and implementation terms).

Since if such information is missing , then this agreement will not be considered valid. Once a document has been drawn up between people, the notary must formalize accordingly.

procedure :

  • indicate number ;
  • place of detention;
  • by whom it is issued;
  • who registers (first person I.O.F);
  • passport details;
  • who registers (data of the second);
  • passport details;
  • subject of the contract;
  • customer responsibilities ;
  • responsibilities of the performer ;
  • period .

AGREEMENT for free performance of work (provision of services)

______________ “___” _____________ 20__
___________________________, hereinafter referred to as the “Customer”, represented by _____________________________________________, acting on the basis of _________________, on the one hand, and a citizen of the Russian Federation ____________________________________________, hereinafter referred to as the “Contractor”, acting on the basis of the legislation of the Russian Federation , on the other hand, and collectively referred to as the “Parties”, have entered into this agreement as follows:

Subject of the agreement

1.1. The Contractor undertakes, in the interests of the Customer, to perform the following work (provide services) on a free and voluntary basis:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1.2. The Contractor carries out the assignment given to him independently, agreeing on the timing of the work with the Customer.

Duties of the parties

2.1. The performer is obliged:

  • Perform the work (provide services) specified in clause 1.1. of this agreement, personally, without the involvement of third parties;
  • execute the order within the period from the moment of conclusion of this Agreement “___”_______20__. and by “___”_______20__. inclusive;
  • If the work is completed before the end of the contract, the work is considered completed after delivery of the work according to the acceptance certificate for the work performed. The date of approval of the acceptance certificate for the work performed is the end of the contract. The acceptance certificate for completed work is drawn up in 2 copies, one copy for each of the parties to the contract.

2.2. The customer undertakes:

  • accept the work according to the work acceptance certificate.

Responsibility of the parties

3.1. The parties are responsible for non-fulfillment or improper fulfillment of obligations in accordance with the legislation of the Russian Federation.

4. Dispute resolution

4.1. Disputes between the parties arising from the fulfillment of their obligations under this agreement are resolved in the manner established by the current legislation of the Russian Federation.

Final provisions

5.1. The parties are guided in their activities by this agreement and the Civil Code of the Russian Federation.

5.2. This agreement comes into force from the moment it is signed by the parties and is valid until they fully fulfill the obligations arising from it.

5.3. All changes and additions to this agreement are valid provided that they are made in writing and signed by both parties.

5.4. This agreement has been drawn up in two copies, one for each of the parties.

Addresses and details of the parties

How to account for a gratuitous transfer for income tax purposes

Expenses in the form of the cost of gratuitously transferred property (work, services, property rights) and expenses that are associated with such a transfer cannot be taken into account when calculating income tax (clause 16 of Article 270 of the Tax Code of the Russian Federation).

How can the transferor take into account the gratuitous transfer of property for income tax purposes?

When transferring property free of charge, the value of the transferred property and the costs associated with such transfer should not be taken into account either in your income or in your income tax expenses (clause 16 of Article 270 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated October 27, 2015 N 03 -07-11/61618).

Please note that there is widespread advice that you can include in your income tax expenses the amount of VAT that is accrued in connection with the gratuitous transfer. Such advice is risky, since, according to the Russian Ministry of Finance, the amount of accrued VAT is not taken into account in expenses on the basis of clause 16 of Art. 270 of the Tax Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated March 11, 2010 N 03-03-06/1/123).

If you transfer a fixed asset free of charge, then you do not need to restore the depreciation premium on it (Letter of the Ministry of Finance of Russia dated September 28, 2012 N 03-03-06/1/510).

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Reply for

Employment contract between legal entities and individuals

Most often, such an employment contract implies the provision of the following services between the organization and the employee:

  • payment of rented housing for an employee;
  • providing the employee with corporate clothing that is not special;
  • insurance for the employee and his family members;
  • payment for employee training;
  • provision of a pass for public transport;
  • payment for kindergartens.

Despite the fact that the employee does not receive any money or have any material benefits, all of the listed services are equivalent to payments and other remuneration. This means taxes must be paid on these amounts. Facebook

Comments on the document “Agreement for free performance of work (provision of services)”

Reply 0

no name 02/13/2014 at 21:58:20

Thank you!!!

Reply 0

5

Eugene

03/16/2014 at 17:11:54

Great base! Thanks a lot!

Reply 0

Tamara 05/14/2014 at 17:31:11

Please clarify whether it is possible to use this sample as a “template” for drawing up an agreement for the provision of medical services (dental care within the framework of compulsory medical insurance - free of charge) under the following conditions:

-the institution has a licensed dentistry office, but no specialists;

-the service in this institution was previously licensed, but due to the lack of a specialist, there is a possibility of termination of the license;

- there is a dental clinic in the city and its specialists are ready to provide services in this office.

The agreement is necessary to preserve the cabinet. Perhaps you can offer other options for drawing up the contract - I will be very grateful!

Reply 0

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Reply 0

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Please clarify whether this agreement can be used for repair and construction work not subject to SRO

Reply 0

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Reply 0

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Hello. I am an individual entrepreneur, I have a point in the market. Can I hire a relative (father-in-law) to help me once a week without hiring him using this contract?

Reply 0

5

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01/29/2015 at 14:41:31

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Thank you

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5

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08/26/2015 at 13:36:12

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09.29.2015 at 09:31:09

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4

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12/28/2015 at 16:26:42

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Reply 0

5

Andrey

02/02/2016 at 11:09:43

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Reply 0

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03/28/2016 at 17:07:27

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Reply 0

5

no name

04/20/2016 at 14:01:48

Thank you

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Reply 0

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Reply 0

5

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07/26/2016 at 07:01:12

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09.24.2016 at 22:02:44

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Reply 0

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I will use it as part of the skeleton for further creation of the contract))

Reply 0

5

Irina

10/05/2017 at 12:01:48

Thank you

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It’s nice that in Russia we have such teams of lawyers who are a pleasure to contact!)

Reply 0

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I used your template! Thank you

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01/18/2018 at 14:35:56

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5

Julia

05/25/2018 at 07:28:46

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Reply 0

Olga 05/27/2018 at 10:05:59

As an amateur, I like it. I'll go consult a lawyer. The task is to register the seller (my mother) with me (I am an individual entrepreneur). Thank you!

Reply 0

5

lily

12/17/2018 at 10:30:08

Thanks for the useful information.

Reply 0

Eugene 01/28/2019 at 16:06:44

The contract provides for the requirements of the Civil Code, the text is brief.

Reply 0

Olga 02/11/2019 at 09:59:49

Thank you!!!!!!!!!!!!!!!

Reply 0

ttsyy 03/12/2019 at 18:09:36

vyv

05/14/2014 at 17:31:11

Please clarify whether it is possible to use this sample as a “template” for drawing up an agreement for the provision of medical services (dental care within the framework of compulsory medical insurance - free of charge) under the following conditions:

-the institution has a licensed dentistry office, but no specialists;

-the service in this institution was previously licensed, but

Reply 0

Anna 03/15/2019 at 15:53:48

Thank you, the material is right on point!

Reply 0

Sergey Mikhailovich 04/12/2019 at 14:35:16 reply to Tatyana

Hello. I am an individual entrepreneur, I have a basement for selling clothes. Can I hire a relative (father-in-law) to help me once a month when leaving to pick up goods, without hiring him to work using this contract?

Personal message | Reply 0

Sergey

Status: Client

04/12/2019 at 14:39:02 reply to Tatyana

Hello. I am an individual entrepreneur, I have a basement that is given for free use for selling clothes. Can I hire a relative (father-in-law) to help me once a month without hiring him using this contract?

Reply 0

Anna 04/23/2019 at 04:54:42

The sample document and comments to it were useful, thank you.

Reply 0

Irina 05/28/2019 at 09:11:33 reply to Tamara

Thanks a lot for the tip

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5

Ivan

07/15/2019 at 23:49:36

super! I recommend!

they want a twenty character review!

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Reply 0

Galina 08/07/2019 at 10:47:05

for what period can a “Contract for free performance of work (provision of services)” be concluded?

Reply 0

5

Svetlana

10/22/2019 at 6:36:54 pm

Thank you. The agreement was useful.

Reply 0

5

Zhanna

07.11.2019 at 13:48:33

Lots of samples, very convenient, thank you!

Reply 0

Eugene 12/18/2019 at 08:30:13

Normal sample. Is it true. it would be better to provide general legal justification for his conclusion

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5

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12/27/2019 at 11:44:49

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Reply 0

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02/03/2020 at 15:20:58

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Reply 0

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5

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04/01/2020 at 21:56:24

Thank you. The article is useful.

Reply 0

Andrey 04/06/2020 at 16:43:28

Thank you! very useful article

Reply 0

Catherine 04/28/2020 at 14:38:38

Thank you very briefly and to the point.

Reply 0

Ramilya Zinnatullina 05/27/2020 at 14:04:27

Excellent basic agreement, very useful

Reply 0

5

Natalia

08/05/2020 at 07:42:18

Super Informative! Very professionally presented. Thank you!

Reply 0

Tatiana 08/20/2020 at 15:14:35

Thanks a lot! very useful!

Reply 0

5

Irina

09.21.2020 at 10:29:10

Thanks for the help. Helped out. When there is very little time to solve a problem, this is convenient.

Reply 0

Love 11/18/2020 at 11:14:01 pm

Hello! I am looking for a form of Agreement with the Chairman, the only representative of a public organization working without a salary. Is there a contract for free work or is there another form?

That is, he must conclude it with himself...

Reply 0

Irina 12/10/2020 at 10:55:23

Very useful information!

Reply 0

LELYA 01/13/2021 at 19:14:41

Thank you, very useful.

Reply 0

5

Visit Vyborg

01/31/2021 at 17:48:05

Thank you, everything is short and clear

Reply 0

Julia 02/24/2021 at 11:45:11 am reply to Love

Yes, I’m also interested in whether this form is suitable for concluding an agreement between an NPO (ANO) and the general director of the NPO (one of the founders) appointed by the protocol? There is no activity, no salary is accrued

Reply 0

Lyudmila 03/02/2021 at 08:18:37

Good base. Thank you.

Reply 0

Lyudmila 03/02/2021 at 08:18:38

Good base. Thank you.

Reply 0

Lyudmila 03/02/2021 at 08:19:09

Good base. Thank you!

Reply 0

Lyudmila 03/02/2021 at 08:19:10

Good base. Thank you!

Reply 0

5

Sergey

04/02/2021 at 11:52:41

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Reply 0

4

Sergey

04/24/2021 at 20:05:55

Thank you, good contract, I took it for work and edited it.

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    Good day! Dear lawyers, my husband is an individual entrepreneur, now an on-site tax audit is being carried out on his activities regarding non-payment of VAT. The field of activity of the individual entrepreneur is finishing work. In order to cash out funds received by an individual entrepreneur, an agreement for the provision of services free of charge was concluded between me (an individual) and my husband (an individual entrepreneur). As part of this agreement, I provide services for the purchase of finishing materials free of charge.

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