What is a GPC agreement
This is a civil law agreement, also known as a civil law agreement, concluded between an organization and an individual. This includes, in particular, contracts:
- according to the norms of Article 779 of the Civil Code of the Russian Federation for the provision of services;
- according to the norms of Article 702 of the Civil Code of the Russian Federation for the performance of work, contract;
- according to the norms of Article 1288 of the Civil Code of the Russian Federation - author's order;
- other.
After completion, the customer and the contractor sign a certificate of completion of work. On its basis, the citizen receives a reward, that is, money earned. This can happen either in stages or for the entire volume at once. Under agreements of this type, an individual acts as a performer of any work or services. In doing so, it can:
- have the status of an individual entrepreneur;
- do not have the status of an individual entrepreneur.
This is of decisive importance for the customer. Why is this so important? Because the obligation of an organization or entrepreneur to pay taxes and insurance premiums on remunerations paid to performers depends on this. In particular, under such an agreement with an individual entrepreneur, the customer of work or services does not have any such obligations; he must pay taxes on his own. But if the performer is an ordinary citizen, then the question of what fees are subject to a civil contract should be of interest to the management of the organization even before it is signed. Because if you underhold or underpay something, you can get a large fine from the tax authorities. But first things first.
Under which contracts personal income tax is paid for an individual, and under which ones not?
You need to pay personal income tax if an entrepreneur cooperates with an individual or uses his property. But if he buys something from him, then no - Art. 208 Tax Code of the Russian Federation.
Personal income tax is withheld according to agreements:
