Gig contracts and taxes: What should businesses know about gig contracts? ITU Legal Talks summary

On October 9, the ITU Legal Talks, organised by the IT Ukraine Association, took place. The focus of the discussion this time was on the details and tax aspects of gig contracts. 

 

The event’s speakers, Kateryna Harbuz, Partner and Head of Legal Practice at EBS, and Anton Klymenko, Senior Lawyer at Tretten Lawyers, explored the specifics of concluding gig contracts within the framework of Diia.City residency, the role of gig specialists, the advantages and risks for businesses, as well as tax nuances:

• A gig contract is a civil law agreement concluded between a Diia.City resident and a gig specialist (an individual). It allows companies to mitigate the risk of the relationship being classified as employment and ensures certain social guarantees for gig specialists.
• A gig specialist is an individual with legal capacity who has entered into a gig contract with a Diia.City resident and provides services or performs tasks as per the contract terms.
• The advantages of a gig contract include avoiding employment relationships while offering certain social guarantees that are unavailable in the sole proprietor format.
• Taxation: It is important to understand how gig specialists are taxed and how this affects the financial status of companies.
• Contract formulation: Clear terms regarding the provision of services, deadlines, and work schedules should be detailed, including exceptions for tasks requiring additional effort.
• The rights, duties, and responsibilities of both parties must be clearly outlined, including expense reimbursements, compensation, and the termination procedure with specified notice periods.

 

For all the details, you can watch the webinar recording:

 

ITU Legal Talks is a regular bi-monthly online discussion format established to converse over the pressing business development issues of modern times. The panels include governmental and business experts and representatives. Join us and get professional advice and business guidance that you can lean on to stay on top of GR trends, ensure balanced decision-making and maintain an open dialogue with the government.

 

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