RosCo lawyers helped develop a draft subagency agreement for a South Korean company
A representative of the South Korean company Kanavi Mobility contacted “RosCo” to develop a mechanism that would allow the employer to hire employees for the positions of the organization's representatives without concluding employment contracts.
RosCo lawyers developed a subagency agreement for the client - an intermediary contract. Subagents act on behalf of the agent, carrying out his instructions, and receive remuneration for this. The agent, in turn, acts on behalf of the customer - the principal.
The subagent's services are subject to value added tax (VAT) - subparagraph 1 of paragraph 1 of Article 146, paragraph 1 of Article 156 of the Tax Code of the Russian Federation (hereinafter - the Tax Code of the Russian Federation).
The subagent's remuneration is revenue from the sale of intermediary services. Such revenue is taken into account when calculating the tax base for income tax - paragraph 1 of Article 248, paragraph 1 of Article 249 of the Tax Code of the Russian Federation.
The agent reflects payments to subagents as part of other expenses for the production of sales - subparagraph 3 of paragraph 1 of Article 264, subparagraph 3 of paragraph 7 of Article 272 of the Tax Code of the Russian Federation. According to the terms of the agency agreement drawn up by RosCo lawyers for Kanavi Mobility, the agent is a citizen of the Russian Federation acting as a representative of a South Korean company, and the subagents are citizens of the Russian Federation carrying out the Agent's instructions. The instructions concern activities related to information processing and finding buyers.
