How to conclude a contract correctly. How to correctly conclude a share participation agreement in construction? Do not confuse a preliminary agreement and an agreement of intent; they entail completely different legal consequences

1) Law.

2) Lease term. indefinite term

3) Rent.

4) Repair and reconstruction.

5) Execution of the contract. Sample rental agreement)

Failure to comply with the legal form of drawing up a contract may mean that it is not valid. When transferring the leased object, an acceptance certificate is drawn up in the OS-1 form. The acceptance certificate indicates everything that is accepted for rent along with the premises, that is, a list of equipment, counters, furniture, tables, chairs, etc. This is done in order to avoid conflicts in the future when renting the property back. At the time of return of the leased property, a disposal certificate is drawn up in the OS-4 form.

Useful tips when concluding a rental agreement for premises.

Often, in order to save money, businessmen prefer to rent a room or office rather than purchase, let alone build, a new facility. And so, a suitable premises have been found, all conditions have been agreed upon with the owner of the premises. Now all that remains is to draw up the documents for renting the premises.

The entrepreneur’s task is to correctly and competently compile all documentation. This is especially true for small firms in the small business sector, where in most cases the main expense is renting premises. Often, due to the entrepreneur’s lack of experience in concluding such agreements, the rental agreement for the premises is concluded on conditions that are not entirely favorable.

The main questions that arise when concluding this agreement are: - How to draw up the agreement correctly? — What documents should be attached to the lease agreement? — What rights and responsibilities do the landlord and tenant have? — What responsibility does each party bear, etc.

This article proposes to consider the most important details that should be taken into account when drawing up a lease agreement.

1) Law. Before concluding an agreement, we advise you to familiarize yourself with Chapter 34 of the Civil Code of the Russian Federation, which contains the main provisions of rental relations in the Russian Federation. Also, before concluding a contract, you should check:

• ownership of the premises;
• intended purpose of using the premises;
• whether the premises are under arrest, pledged or leased from third parties;
• is there a decision to put the premises into operation after construction or reconstruction?

2) Lease term. One of the important components of the contract is the lease term. It should be noted that when concluding an agreement for a long time - more than one year, the lease agreement is subject to registration in the Unified State Register of Rights. This procedure requires additional time and money. There are several possible ways to bypass registration of an agreement in a unified registry: - Concluding a lease agreement for a period of up to 1 year. Upon expiration of the contract, a new contract is drawn up and not a single structure will pick on you. However, this method has its drawback: the landlord may not conclude a new contract with you, for example, if he finds another more profitable tenant and you will not have any rights to prevent this action (Article 621 of the Civil Code). — Conclusion of an agreement for indefinite term. This option also eliminates the need to register the contract, since the validity period of the contract is not specified. This option also has its drawback - either party can terminate the lease agreement at will by notifying the other party three months before termination of the agreement. — Conclusion of an agreement “before the event,” for example, before the reconstruction of the premises. That is, the parties to the contract themselves determine before the occurrence of which event the contract will be valid. In this case, the lessor must clearly indicate upon the occurrence of which event the contract will be terminated. Termination of the contract by the lessor for other reasons will not be legal.

3) Rent. An important condition of the contract is the rent. The contract must indicate the amount of the rent, otherwise the transaction may be considered invalid. The lease agreement does not provide for free use of someone else's property; for this case, there is another type of agreement - an agreement for free use. The method of rent payment is determined by the lessor. At his discretion, he can choose several legal methods of rental payments. This could be a fixed amount, payment of rent for repairs, for using the services of a tenant, etc. The terms and payment mechanism for rent can be changed no more than once a year, unless otherwise provided by the lease agreement (Article 614 of the Civil Code). On the other hand, the tenant may demand a reduction in the cost of rent, for example due to deterioration in the condition of the premises or property. When concluding a lease agreement, the terms of payment of utility bills, cleaning of the premises, security, communication services, etc. should be specified in the agreement. Often, after the conclusion of the contract, the landlord tries to impose additional payments on the tenant. To prevent this from happening, resolve the issue in advance, in a contractual form.

Payment of rent is usually made monthly, both in cash and in non-cash form. When paying rent in cash, it is mandatory to require written confirmation from the lessor of payment of the rent. Failure to pay rent on time (more than 2 times in a row) may be grounds for early termination of the lease agreement (Article 619 of the Civil Code).

4) Repair and reconstruction. The tenant, in agreement with the landlord, can make improvements to the leased premises. The contract should specify which party is obliged to carry out repairs and at whose expense. If the repairs will be carried out by the tenant, then it is advisable to include the cost of repairs in the rent bill. By default, major repairs of the premises are carried out by the landlord. But maintaining the rental property in good condition is the responsibility of the tenant.

5) Execution of the contract. All key conditions for renting premises must be written down on “paper”, that is, in the contract and not in any oral agreements. The agreement must be concluded in writing in at least two copies, one each for the landlord and the tenant. ( Sample rental agreement)

Starting a new business in most cases is associated with high costs. Beginning entrepreneurs are forced to look for the most economical options for implementing each point of the business plan. If there are certain restrictions on start-up capital, you have to abandon the purchase or construction of premises for running a business and look for rental offers. Finding the appropriate option is not easy; many criteria must be taken into account. But this is not the most difficult moment - it is extremely important to correctly prepare lease documents.

This aspect is especially relevant for small companies that are just entering the market. Large companies enter into contracts with law firms or have the opportunity to hire a full-time specialist. Their lease agreements are carefully checked; in the event of a controversial situation, there is the possibility of competent protection of interests in court.

For small businesses, where rental costs often become one of the most expensive items of expenditure, a competent approach to concluding a contract and advice from an experienced lawyer are even more important. Fortunately, excellent resources have begun to appear on the Internet offering legal advice on any issues of organizing a business and the correct execution of documents.

Key points when concluding a contract

It doesn't matter what impression the landlord made on you. Even if you have mutual acquaintances or family ties with the owner of the premises, it is necessary to insure yourself and draw up documents in full compliance with the requirements of the law.

Law

The relationship between the landlord and the tenant is regulated by GL 34 of the Civil Code of the Russian Federation. It is necessary to study it, because it is there that the main provisions are described.

If you like the room, check the following points:

Ownership. You can only enter into an agreement with the owner and must discuss the terms only with that person.
- Ask for documents for the premises and check its intended purpose.
- Find out if the premises are leased, mortgaged or under arrest.
- Check for operating permits.

Rental period

This is one of the most important aspects. You should know that if a contract is concluded for a period exceeding 12 months, it must be registered in the Unified State Register. This procedure takes some time and requires additional costs. There are ways to get around it:

You can enter into a contract for a period of up to 12 months; after this period, the lease is concluded again. But it is important to understand how risky this venture is. The landlord can get a better offer and sign an agreement with another person. According to the law, you are not required to warn you, because the rental period is ending.

You can enter into an agreement for an indefinite period. This formulation is acceptable and eliminates the need to register in the registry. But the landlord has the discretion to terminate the deal. You will just get 3 months notice and will not be able to resist it.

Concluding a deal “before the event”. The parties themselves determine which event causes the end of the contract. The most common formulation is reconstruction of the building. But this also carries certain risks.

Rent

If its size is not specified, the contract is not valid. If you have entered into a lease transaction without payment, you must enter into another type of document - a free use agreement.

The method and amount of rent is determined by the lessor. There are several forms of rent provided for by law - a fixed amount, reciprocal service, repairs by the tenant to pay for the operation of the premises, and others. You can change the terms and forms of payment no more than once every 12 months. But there are circumstances in which the tenant has the right to demand a reduction in the amount, for example, if the condition of the premises deteriorates.

Please clarify in advance which party pays for utility bills, communication services, security, and cleaning of the premises and surrounding area. There are often cases when the lessor, after concluding an agreement, tries to “hang up” these expense items. If you have discussed these points in advance and recorded them in the contract, it will be much easier to protect your interests.

The most common rental payment schedule is monthly payments in cash or non-cash form. If you pay in cash, be sure to ask the landlord for a document confirming payment. You should know that failure to pay rent on time more than two times in a row becomes a legal basis for terminating the contract before the expiration of the agreed period.

Repair

Any repair work can be carried out by each party only upon agreement. Responsibilities or rights to carry out repairs must be clearly stated in the contract. By default, the landlord is required to carry out major reconstruction of the premises. It is the tenant's responsibility to maintain their premises in good condition.

Depending on the situation, it is possible to reduce the cost of rent by carrying out repairs. It is possible that the landlord does not agree to bring the premises into the condition that the tenant needs to conduct business. These points need to be clarified in advance.

Paperwork

Under no circumstances rely on verbal agreements. All conditions must be stated in the text of the agreement and signed by both parties in two copies. If you do not comply with the laws governing this type of business relationship, you are putting yourself at serious risk. The contract may be invalid, and in case of abuse by the landlord, you will not be able to defend yourself in court.

There are a lot of nuances that need to be taken into account when concluding a deal. The assistance of an experienced lawyer is extremely important for a beginning businessman. You cannot save on this, because in case of problems with the landlord, you risk losing much more.

When filling out documents and concluding contracts, it is a rare person who carefully checks the text for possible errors and pitfalls.

As a rule, we check the “papers” on the run, glancing briefly at the beginning and ending, and hoping for the integrity of the other side. For which we then pay with our nerves and “rubles”.

Types of employment contract with an employee - how do they differ?

According to the law, the employee-employer relationship must be formalized by certain documents. Namely, an employment contract, according to which (Article 56 of the Labor Code) the employee must perform his labor functions and comply with the rules of the organization, and the employer must pay him his salary without delay and in full.

That is, it is an important document that clearly defines the rights and obligations of both parties.

What an employment contract can be like in practice and according to the law:

• Civil law. This version of the contract takes place when the manager is “backed up”. It is concluded for the provision of specific services in order to easily fire an employee in a “you are not suitable for us” situation. If the employee manages to prove himself, they move on to an employment contract.
• Urgent. In this case, the contract secures the employee’s work for a certain, very specific period, and not indefinitely. And after its completion, management can legally dismiss the employee. Or rehire him by issuing a dismissal order and concluding a contract again. True, the employer must have good reasons for concluding such an agreement. Otherwise, these actions will be considered illegal.
• Labor. The most common type of contract, which involves indefinite work under certain conditions specified in the document. This agreement, drawn up in writing, is a guarantee of respect for the employee’s rights.

Labor or civil law - differences in contracts:

• TD is work in a specific position according to existing qualifications. GPA is the implementation of certain tasks with an end result.
• According to TD - salary in the amount specified in the document, according to GPA - remuneration.
• With TD, the work is carried out personally by the employee; with GPA, only the final result is usually important.
• Failure to fulfill duties under TD may result in discipline, reprimand or dismissal. Failure to comply with the Civil Regulations is already a matter of civil liability.

Important points when concluding an employment contract - how to prevent mistakes and deception by the employer?

Found a new job? Is the signing of an employment contract approaching?

Let's study the pitfalls to protect ourselves from mistakes and unscrupulous employers!

So, you are required to sign an employment contract within 3 days maximum from the moment you start work. Moreover, in 3 copies and in handwritten form.

And - regardless, whether you were invited by transfer from another place of work, whether you have small children, and whether you have registration at your place of residence.

If they don’t sign a contract with you, think about whether it’s worth continuing to work. After all, TD is a guarantee of your rights.

But don’t rush to sign an agreement without looking at it either!

First, read it carefully and pay attention to the most important points:

• Compliance of the order and the contract. When the employer includes important clauses in the contract, they are also included in the order to hire you. And the primary one (note - in controversial situations) will always be the employment contract. Therefore, ensure that these 2 documents correspond to each other. Let the information in the order be in an abbreviated version, but it must fully reflect the conditions specified in the contract. Any inconsistencies (note - provisions in the order that are not specified in the contract) have no legal force.
• Probation. It must be specified in the contract. Maximum period - 3 months. In the absence of this clause, the employee is considered to have been hired without a probationary period and, accordingly, they have no right to dismiss him later as having not completed this period.
• Specific place of work. If it is not clearly defined by the employer in the contract, then it will be extremely difficult to fire an employee for “absenteeism” - after all, the workplace is not specified. That is, if you are fired for absenteeism, in the absence of this clause in the employer’s contract, the employer will be obliged through the court to reinstate you at work.
• Responsibilities. They must also be spelled out clearly and specifically. Otherwise, the employer simply does not have the right to demand that the employee perform certain tasks “in accordance with the contract.” The employee can safely declare that the work that he is required to perform is not included in the scope of his duties. And it is also impossible to fire an employee for failure to complete tasks not included in the contract.
• Salary limit. It must also be stated in the contract. And if this maximum limit is underestimated, the employee can safely go to court. It is worth noting that your bosses should notify you of all changes in your pay only in writing and a couple of months before the change itself. One cannot fail to mention payment in kind. It happens that instead of a salary, employees are given products produced by the company. This “method”, alas, has not yet become obsolete. It is considered legal if “in kind” does not exceed 20% of the salary, and is also suitable for consumption (use) of the employee and his family.
• Rules. Before concluding a contract, your management must familiarize you (exclusively against signature) with the company’s internal labor regulations and other acts/provisions that are directly relevant to you.
• Contents of the agreement. Read the document carefully! It should contain not only your place of work and position, but also a list of responsibilities, payment terms (including all bonuses with allowances) and the issue of social insurance, the start date of work. Additional conditions may also be specified: rest/work schedule (if it does not coincide with the regime of other employees), the issue of compensation for “harmful work,” special conditions (business trips, etc.).
• Responsibilities. Demand that they be spelled out clearly and in as much detail as possible. That is, the position itself, the specific type of work and the department itself in which the work is expected. If the contract states that you will perform your duties “according to the job description,” then ask for instructions - it must be attached to the contract with your signature (note - a copy is kept in your hands).
• Social insurance. Important point of the contract! And the information from this paragraph must be entered in accordance with federal laws. This clause is a guarantee of compensation for harm in the event of a force majeure situation, as well as temporary disability, maternity, etc.
• Recycling. The contract must specify the exact number of working hours. And when overworked, you will be paid for the extra time worked in 1.5 or double the amount.

And finally, it’s worth reminding that the agreement is signed only by the director and only in your presence, and the name of the company appearing in the papers must be the same everywhere.

Duration of an employment contract - what should you pay attention to?

When hiring, a contract is concluded for a specific or indefinite period, depending on the job.

• Classic contract (for an indefinite period). In this case, the period for which you are hired is not specified or specified at all. That is, you are hired on a permanent basis, and termination of the employment relationship is possible only in accordance with the procedure established by law.
• Fixed-term contract. An option when you are hired for a period agreed upon by 2 parties to perform a specific job. The maximum period is 5 years. In addition to the validity period, this agreement indicates the reasons for not concluding a regular contract (they are approved by law, and the employer has no right to expand the list of reasons). This contract is terminated upon expiration of its validity period by giving the employee at least 3 days written notice. In the event that the contract term has expired and the employee is still working, the contract automatically becomes “indefinite”.

It is worth noting that fixed-term contracts are divided, in turn, into...

• A contract with an absolutely definite duration. This type of agreement is applicable when a person is elected to a certain elective position. In particular, with governors, rectors, etc.
• A contract with a relatively specific duration. The case is for persons admitted to a temporary organization created for a specific job and for a specific period. Termination of the contract occurs after the end of the organization's existence.
• Conditional fixed-term contract. An option for the case when an employee is needed only temporarily - as a replacement for an employee who is temporarily absent for specific reasons (business trip, maternity leave, etc.).

Meet our new section “Legal educational program”. In it we will talk about how to protect yourself and your business from the point of view of the law.

We decided to start, of course, with contracts. Today we will tell you everything you need to know to correctly conclude a contract.

By concluding a contract, you entrust the work to another person, ultimately wanting to get a certain result. Or vice versa - you perform work on behalf of the customer. The result of contract work is always presented in material form. This is the fundamental difference between a work contract and a service contract.

Conclusion of an agreement

Please note that the contract must contain several mandatory conditions. The absence of even one of them may cast doubt on the conclusion of the contract.

1. The Subject of the Agreement

Having answered the question of what you want to receive as a result of the work, set it out in detail in the contract.

• types of work: what work you entrust to the contractor;
• content of work: what these works include;
• scope of work: how much of this work must be completed;
• desired result.

For example, you want to entrust a contractor with the manufacture of office furniture. Indicate what kind of furniture the contractor must produce: its type, quantity, completeness, color, size. The more wishes you have for the final result of the work, the more detailed it should be described.

You can specify the subject in the contract itself, but it will be more convenient to draw up an annex, which is an integral part of it. In order for the application to acquire legal significance, it must be signed and a reference to it must be made in the text of the agreement.

Applications can include technical specifications, specifications, and sketches. This way, you can specify in detail all the requirements that you place on the contractor.

If you do not have special knowledge and find it difficult to draw up technical specifications or design documentation on your own, then the contract should stipulate that the responsibility for drawing them up rests with the contractor.

2. Deadlines

Judicial practice does not give a clear answer to the question “is it necessary to indicate the terms in the contract?” But in order to avoid unnecessary disputes, we recommend agreeing on the initial and final, and, if necessary, intermediate deadlines for completing the work.

3. Price of work

The absence of a price in the contract does not deprive it of its significance, but we recommend agreeing on this condition. If the cost of the work is not determined, the amount of remuneration is calculated from the total market value of this type of work.

The price can be set either in exact or approximate amounts. But keep in mind that concluding an agreement with an open price in practice leads to disputes caused by a significant difference in the final amount from the originally agreed upon. The customer who does not agree with the quoted price will have to prove its unreasonableness in court.

The contract price can only be changed by agreement of the parties. To do this, you need to conclude and sign an additional agreement, which will be an integral part of the contract and have the same legal significance. If necessary, you can draw up an estimate, which becomes part of the contract and becomes significant only after it is approved and signed by the customer.

As a general rule, payment is made after the customer accepts the work, but in the contract you can provide for any payment procedure.

4. Additional terms

• the object on which the work is to be carried out should be indicated if it is of fundamental importance. For example, so that after completion of work you will not see the result on the neighboring plot of land;
• As a general rule, work is carried out with the funds and materials of the contractor, who is responsible for their quality. If you have agreed on a different procedure, this should also be reflected in the contract. It is important to remember that when the customer provides materials, responsibility for their quality falls on him;
• other additional conditions can be specified almost without restrictions. The main thing is to reach an agreement with the counterparty without violating the provisions of the law.

Refusal of the customer to fulfill the contract

• in case of increase in the price of work: when paying the contractor for the expenses actually incurred by him;
• when the contractor delays execution: if it becomes clear that the work will not be completed on time. In this case, the contractor compensates the customer for losses;
• when low-quality work is detected before its completion The customer provides the contractor with a period to eliminate deficiencies. If they are not eliminated within a reasonable time, the customer has the right to refuse to perform the contract and demand compensation for losses;
• unilateral refusal: when paying the contractor for the work actually performed, as well as compensation for losses;

Contractor's refusal to perform the contract

• in the presence of circumstances depending on the customer, which may negatively affect the quality of work, the contractor must warn him about this. If no action is taken by the customer, the contractor may withdraw from the contract and demand compensation for damages;
• in case of non-fulfillment of obligations by the customer the contractor may withdraw from the contract and claim damages

After execution of the contract, the transfer of the result to the customer should be properly formalized.

Acceptance of work is formalized by an act that indicates:

• Title of the document;
• date of its preparation;
• name and details of the contractor and customer;
• name, quantity and price of work performed;
• signatures of the parties;

If there are any comments, claims or wishes regarding the quality, composition, or configuration of the work performed, this must be reflected in the report. It will be very problematic to prove that the contractor performed work of inadequate quality if the corresponding comment is not contained in the act.

With the help of Elba, you can draw up an act that meets all these conditions.

Submitting claims regarding the quality of work

Quality is assessed in accordance with the contract, the standards established for this type of work, as well as general ideas based on the principles of reasonableness and good faith:)

The contract may establish guarantee period. It is determined at the request of the performer and is his right, not his obligation.

Regardless of the warranty period The law gives the customer two years (for a construction contract - five years) to discover hidden defects in the work performed. During this period, you can make claims against the contractor, but you will have to prove that the deficiencies arose before the transfer of work.

If there is a need to settle relations with a counterparty in court, it is important to determine which court to apply to.

• IN arbitration court: both parties to the agreement are individual entrepreneurs or organizations. This court also considers disputes related to the execution of a state or municipal contract.
• IN court of general jurisdiction: at least one of the parties to the agreement is an ordinary citizen who does not carry out entrepreneurial activities.

Do not confuse the contract with other types of contracts.

Contract and employment contract

An employment contract is concluded if you anticipate a long-term relationship with an employee associated with repeated personal performance of any function. Of course, an employment contract gives rise to many responsibilities for you, because you become an employer and are guided by labor legislation in your relations with the employee.

Therefore, if all that is important to you is achieving results within a set time frame, it would be better to enter into a contract agreement.

Contract agreement and paid service agreement

When performing contract work, there is always a material result, and for the customer it is the result that is important, not the process. For example, when entrusting the manufacture of furniture to a contractor, it is important for you to receive a table or chair as a result. At the same time, how the performer achieved the desired effect fades into the background.

When services are provided for a fee, there may be no material result at all. For example, when turning to a specialist for legal services, you, of course, want to achieve a certain result, but at the same time, the assistance of a lawyer at every stage is important to you. Thus, the process itself comes to the fore, not the result. In this case, a service agreement is concluded.

How to conclude a lease agreement correctly

Anna Andryushchenko

Most small and medium-sized companies, in order to save money, prefer to rent rather than buy office space. Individual entrepreneurs do the same. The accountant’s task is to correctly draw up a lease agreement without missing a single detail.

Chapter 34 of the Civil Code is devoted to rental issues. It contains general provisions and features of temporary use of various types of property. However, counterparties may provide for contract terms that differ from those listed in the code if the law does not clearly indicate their immutability.

State registration

Suppose a company decides to rent an office for a long time. Lease of buildings, land and structures for a period of at least a year requires registration in the Unified State Register of Rights. The procedure for its registration is prescribed in the instructions approved by order of the Ministry of Justice of August 6, 2004. (Read more about state registration in Moscow Accountant No. 10 for 2004 on page 58.)

The company will spend time and money on registering the agreement. Tax consultant, Candidate of Economic Sciences Marina Klimova spoke at the seminar about ways to help avoid red tape.

Firstly, counterparties can enter into a lease agreement for 364 days. Subsequently, you can place another deal for the next 364 days. At the same time, none of the inspectors will be able to find fault with the fact that the company is extending the lease relationship, since this will be a new agreement.

But this method also has an obvious disadvantage. With the execution of another agreement, the tenant loses the priority right over others wishing to rent this property (Article 621 of the Civil Code). Of course, this method is absolutely legal. However, an agreement drawn up in this way several times may raise doubts in the tax inspectorate about the integrity of the company. And inspectors will most likely come to you with an audit.

Secondly, it is possible to conclude a lease agreement for an indefinite period. Firms use this method quite rarely, although it completely eliminates the need for counterparties to register a transaction. Such an agreement can be valid for even 30 years (maximum period). According to Ms. Klimova, such a transaction cannot be said to be concluded for a period of more than a year. And therefore, there is no need to register it. However, this is not a forever agreement. Any party can terminate it at will by warning the other party to the real estate rental transaction three months in advance, and for any other rental object, one month in advance (Article 610 of the Civil Code).

Thirdly, according to the seminar presenter, firms can “conclude a contract before the event.” That is, the counterparties themselves determine the event until which the agreement will be valid. For example, a company receives premises for temporary use until major repairs are carried out. By the way, to terminate such a transaction, it is not enough just to notify about the start of major repairs. The lessor must clearly indicate that the occurrence of this event will result in termination of the contract.

Rent

In addition to the validity period and the state registration associated with it, rental payments are an important condition of the contract. They usually consist of expenses for current repairs, depreciation charges and part of the profit.

If a company rents an office, the agreement must specify the amount of rent. In another case, the transaction is invalid (Article 651 of the Civil Code). You cannot use someone else's property for free under a rental agreement. Otherwise, this agreement will already have a different content, which reveals the agreement of gratuitous use.

By the way, paying utility bills cannot replace rent. The tenant makes payments for these services in favor of the utility companies, not the landlord. Consequently, counterparties must determine in this case an additional, even minimal, amount.

The form of rent is determined by the lessor. He can choose any of the legal options or combine them at his discretion. For example, set a fixed amount or determine as payment the share of goods produced using the leased property. The tenant can also provide services in payment and some others. If the parties have not additionally indicated the corresponding clause in the contract, then the calculation mechanism or payment amount can be changed no more than once a year (Article 614 of the Civil Code).

However, the tenant has the right to demand a reduction in payment if, for reasons beyond his control, the condition of the property has deteriorated. He may also reduce payments due to defects in the leased assets.

In addition, it is necessary to make payments on time. The landlord has the right to terminate the contract early if the tenant is late with payment more than two times in a row (Article 619 of the Civil Code).

Rent is taken into account when taxing profits without restrictions. But if companies have entered into a lease-purchase agreement, then the amount of the purchase price included in the payments is not recognized as an expense. It forms the initial cost of the fixed asset, and not current expenses.

Repairs and improvements

In order to avoid misunderstandings regarding the issue of property repairs, the obligations for its implementation should be specified in the contract. If the agreement does not indicate who should maintain the property in good condition, then by default the tenant will be responsible for routine repairs. It is he who will attribute the costs of operation, insurance or maintenance to expenses. Even if the parties did not stipulate some of these expenses in the contract, they will still be included in the cost. But in order for the landlord to maintain his property, this must be specified in the agreement.

Major repairs are done by the landlord. But only if the parties did not stipulate other conditions in the contract (Article 616 of the Civil Code). In principle, a firm can recognize repair costs for leased property and equipment as “other” to the extent of actual costs. This will happen in the reporting period in which they were made (Article 260 of the Tax Code). But for write-off it is necessary that, according to the terms of the contract, the lessor does not reimburse them to the lessee. If, for example, fixed assets require urgent repairs, then the tenant can carry them out. And he has the right to demand a reduction in rent by the amount of repair work.

Ms. Klimova recalled that the tenant cannot create a reserve for major repairs of objects taken for temporary use. And neither in accounting nor in tax accounting. This follows from PBU 6/01 and Article 324 of the Tax Code. The fact is that the reserve is created for one’s own property.

Also, the tenant can, in agreement with the landlord or at his own request, make improvements, which are divided into separable and inseparable. They represent an investment and add new qualities to the property.

In accounting, the tenant has the right to consider the improvement a separate fixed asset, create an inventory card for it and depreciate it. This applies to those improvements that the company does not intend to transfer to the lessor. Or if the owner does not want to compensate them.

In tax accounting, the lessee also considers the separable improvement to be an independent object and includes it in the depreciable property. If it is inseparable, but the lessor is going to accept it, then the company considers it as work (services) provided to the owner. The lessee has the right to recognize expenses for them at the time of signing the acceptance certificate. If the lessor refuses to compensate for such an improvement, then the costs cannot be recognized (Article 270 of the Tax Code). Expenses will be made at your own expense and will not reduce the income tax base. In addition, the tenant will also pay value added tax. Tax legislation recognizes the gratuitous transfer of property as a sale for VAT tax purposes (Article 146 of the Tax Code). And the landlord will have unwanted income, subject to income tax.

Land tax

If the building and land belong to the landlord, he can bill the tenant for part of the land tax. In this case, the user of the property should not refuse to pay. Indeed, this tax is paid by the owner. But the tenant occupies premises in this building and on this land. Consequently, the landlord can shift part of the tax to him in proportion to the occupied space. The tenant will be able to recognize these expenses as other expenses (Article 264 of the Tax Code).

Registration of the contract

The lease agreement must be concluded in writing if at least one company is involved. When transferring a leased object, it is necessary to draw up a transfer and acceptance certificate (form OS-1). If the accountant fails to comply with the unified OS-1 form, the transfer deed will become invalid. Then the accountant of the company to whose balance the object has been transferred must capitalize the fixed asset. In this case, an inventory card must be created in any case (form OS-6). These documents on leased fixed assets must be stored separately. That is, such cards are available to both the receiving and transmitting parties at the same time.

At the time the property is returned to the lessor, the user company draws up a disposal act (form OS-4). If the lease provides for a buyout, then at the end of its term, the tenant re-forms the OS-1 form, but for his own property.

The editors would like to thank the organizer of the seminar, the group of companies “Fundamentals of Your Business,” for their assistance in preparing the material.

Bibliography

To prepare this work, materials from the site http://klerk.ru/ were used