Is there Unified Social Contribution (USC) from premium received in accordance with the engagement agreement?
In accordance with Article 1000 of the Civil Code of Ukraine of 16.01.2003 № 435-IV, under the engagement agreement , one party (attorney) undertakes to perform on behalf of and at the expense of the other party (principal) certain legal actions. Legal action made by attorney creates, modifies, suspends the civil rights and obligations of principal.
By the engagement agreement might be established exclusive right of attorney to commit on behalf of and at the expense of principal all or part of legal actions provided by the agreement.
In the agreement could be established the validity of such engagement and (or) the territory within which the right of attorney is in force.
By the engagement agreement might be defined period within which attorney has the right to act on behalf of principal.
Thus, the engagement agreement has characteristics of the contract on services.
The agreement parties are attorney - a person that undertakes to perform legal actions, and principal – a person who entrusts attorney to perform these actions . It can be legal person and legal entities (eg, middleman organizations, legal firms, banks, commodity exchanges, etc.).
With regard to USC withholding, according to par. 2 p. 1 Part 1 of Art. 4 of the Law of Ukraine ' On the collection and accounting of USC for obligatory state social insurance' № 2464-VI of 8 July 8 2010, payers of USC for obligatory state social insurance are the enterprises, institutions and organizations and other legal entities established under the laws of Ukraine, regardless of ownership form, and management activities that use labor of individuals under a labor agreement (contract) or other conditions prescribed by law, or civil contracts (except civil contract signed with a natural person - entrepreneur if the work (services) correspond to the activities referred to in the extract from the Unified State Register of legal entities and natural persons - entrepreneurs ), including branches, representative offices and other subdivisions of these enterprises, institutions and organizations of other entities having separate balance calculations and independently make calculation with the insured persons.
USC base is the amount of salaries by types of payments, which include primary and secondary wage and other incentive compensation, including in-kind, determined in accordance with the Law of Ukraine 'On labor compensation' № 108/95-ВР of 24.03.1995 and the amount of compensation to individuals for the works (services) done under civil law contracts .
Thus, summing up, we could say that premium received in accordance with the agreement contract, is the base of accrual and withholding of Unified Social Contribution.
