I would like to ask you for some information on civil contracts. As far as I know, are service contracts between two countries? But does anyone control this (more precisely - if the service is really done, but the other side says it is not (or is not happy) what's going on)? Should the person who performs the service declare the amount received for income, and should he or she be taxed and, if so, how (including if he / she is a retired or a student)? Also what are the main benefits and disadvantages (if any) of signing a civil contract? And what can cause its failure (violation) on either side?
Several questions have been received, but they are on the same topic. I would be happy if you answer me.
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The work done in civil contracts must always be accompanied by the signing of a pass-by protocol from both parties (and of the civil contract itself before commencement of the service).
If there is a bilateral civil contract signed and one of the parties fails to comply with the terms of the contract, the defaulting party may seek his rights through court proceedings.
Until 30.04. the Contractor is also obliged to declare the sums in civil contracts received in the previous year with his annual tax return under Article 50 of the Law on Income Tax of Physical Persons (PITA).
Sanctions for non-declaration begin at $ 500.
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Thanks for the fast and still accurate answer! I received the desired information. I have only a few other questions that I am sure you will be able to answer and I would be happy if it happened.
There is a question about the civil contract itself. As far as I know, it is standard (ie it has it as a blank, the usual LC data is filled in, as well as a deadline, and something more specific is there to which it is important to pay attention (clauses or something similar) For example, if it comes to a question of something longer (more than a month), this monthly reception protocol must be issued according to the work done and the amount paid.
I was impressed by the penultimate sentence - that in case of non-observance of the contract one of the parties may seek his rights through court. In this case, the contractor's failure to observe it is clear what it is - not paying the amount in due time but the contractor? In several places I have seen that the assignor does not appear to be the controlling body of the contractor and must accept the performance as it is, is it true? Is it also possible for a contractor to do the job in a conscientious manner and the assignor to say "think" for some reason and say that he is not satisfied (and what is being done in that case)? My last question is, How is a civil contract ruined, because I have seen different opinions?
Also, should the contractor mention the amounts received in his tax return and, accordingly, must he / she pay a tax? Did I understand that there were any reductions for civilian insurance contracts when it comes to retirees or students (these contributions are not paid by the contracting authority)?
In case of non-observance of a civil contract and winning a case by one or another party, what can be achieved?
I hope that I do not have much trouble with this inquiry and again - I would be very grateful if you answered these last questions.
If you have read carefully the replies, you should have noticed that the contributions are payable by both parties - Employer and Contractor, the tax is due by the Contractor, but all are collected, deducted and declared by the Contracting Authority.
For its part, the Contractor, on the basis of issued official notes on paid salaries and deductions for contributions and taxes, completes an annual tax return for received income and deducted social security contributions and taxes on labor (under labor and civil contracts) in the respective year.
In the case of a longer civil contract, a pass-through protocol is signed with each payment of money between the parties (in order to know the amount of work from the agreed how much is paid).
As far as the Transmission Protocol is concerned, it actually describes what has actually been accomplished. And if the executed does not correspond to the contract in the signed civil contract, the Contracting Authority has the right not to pay the agreed amount and the quality of the assigned work but to pay only what is fulfilled (in quantity and quality).
When determining the basis for determining benefits, the amount received under civil contracts is reduced by 25% of legally recognized costs. For example, if you have done 500 work per protocol before calculating your insurance contributions, the above amount is reduced by 25% (BGN 125) and on the remainder (375 BGN) the due contributions are calculated at the expense of the Contractor and the account of the Contracting Authority.
The Contractor must enter in his annual tax return the salaries paid under civil contracts on the basis of the official notes issued by the Contracting Authority.