Обучение
Commission Fee
The term "Commission Fee" (or the CF) is used to indicate the amount of additional payments (taxes and bank charges) that are added to the contractor's fee (director, cameraman, actor, etc.) when allocating the payment to a legal entity (usually, a sole entrepreneur).
For example, an agreement was reached with the director that their Net fee (i.e. "in cash after all taxes") is 100,000 RUB. Since the fee is paid to the sole entrepreneur’s account, and the director must pay a 6% tax and 1–2% for wire transfers and services, the contract specifies the amount, for example, 108,695.65 RUB. In this example the Commission Fee is 8,659.65 RUB, i.е. 8% of the Gross amount (108,695.65).
Please note that an 8% (for example) Commission Fee is calculated using the CF formula = 100,000 / 0.92 * 0.08.
In addition to the above example, the Commission Fee can also be used in payments to individuals. In this case, CF % should include the personal income tax rate, pension plan payments and other mandatory payments.
What has this term been introduced for?
The term "Commission Fee" has been introduced to the system to display data in cost estimates and reports both in the Gross (including all taxes) and in the Net formats (net, in cash). Learn more about different views in the dedicated module.
"Virtual Commission Fee" (commission fee in a separate payment).
Learn more about a “virtual commission fee” (commission fee in a separate payment) in the dedicated module.