RESIDENTS OF DIIA CITY. FEATURES OF WORK

Diia City residents: what to choose - an employment contract, a CPC contract or a gig contract. Peculiarities of registration, payment and taxation.

With the work of Diia.Сity. users are actively interested in the question of how to formalize employment relations. After all, there are different methods of registration, and with them different methods of accounting and payment of work, as well as taxation. Therefore, each method has its advantages and disadvantages.

Diia City resident and employment contract

An employment contract was concluded between a resident of Diya. City and employee (specialist) is aimed at fixing the basic rights of both persons. What is important is that the employment contract is more favorable for the employee, because if the employer loses Diya.City residency, the employment contract continues to be valid.

Diya City resident and gig contract  

A gig contract is a fairly new way of formalizing labor relations between an IT company and an IT specialist. The gig contract contains elements of a civil law and labor contract. The so-called mix of legally established provisions in which conditions regarding the work performed can be prescribed. When concluding a gig contract, the employee is not included in the company's staff.

For a specialist, it is convenient because the right to rest, vacations, etc. is prescribed in the gig contract. In a gig contract, the working and resting time is the same as for regular employees, that is, the working time cannot exceed 40 hours per week. But if the employee's working hours are not accurately recorded, then such an excess is allowed.

Taxation under gig contracts practically does not differ from the model of cooperation with a private enterprise.

A resident of Diya City and a TSP contract

Conclusion of a civil law contract by a resident of Diya. City is somewhat similar to an employment contract. But it has its own peculiarities. When concluding this type of contract, the tax authority must be notified. Employees under this type of contract have the right to receive sick pay, assistance in connection with pregnancy and childbirth, and other social benefits.

Design features

In case of any registration of labor relations with an employee (employment contract, civil law contract, gig contract), the resident Diya. City must notify the tax authority about such registration.

Pay

Remuneration is established by agreement between the parties and fixed in the contract to be concluded by the parties.

Taxes 

Salary payments to employees are taxed at a reduced rate, personal income tax (PIT) is taxed at a rate of 5% and 1.5% is military duty.

So, regardless of which method of registration of labor relations you have chosen, each has its own advantages. To assess the most optimal form of legalization of labor relations, it is worth analyzing the company's work in more detail. This can also be done with the help of a specialist who will help understand the intricacies of employment relations and, if necessary, prepare the necessary contract or gig contract. It is better to do it well once than to make changes and conclude additional agreements later.