Rent, forms and settlement rules
Lease relations are widespread amongentrepreneurs. The landlord (who owns "free" property, for example land or real estate objects) provides this property for a fee to the other party - the lessee and has income from this. The tenant (the one who takes the property for rent) gets the opportunity to use someone else's property to make a profit.
Rent for rented property can be installed in various forms.
- Payments in a fixed amount, made at a time or periodically.
- In-kind (in the form of a share of the products received, fruits or income from their sale).
- In the form of providing the tenant with pre-agreed services.
- By improving the lessee's rented property (repair, equipping).
- Transfer by the lessee as a payment of certain property in the property or in rent.
These methods can be combined or be different. In the Civil Code of the Russian Federation (art. 614), lease relations are regulated and it is indicated that the rent must be paid in a timely manner and in the form and amounts that are accounted for by the lease agreement. The most common way is to make regular payments in cash.
In case of leasing several objectsRent can be set separately for each object or for all property as a whole. The first method is preferable in the event of a dispute in the court arising between the parties of the differences.
Sometimes the fee can be agreed uponSet variable depending on the monthly utility payments. But this method does not fully comply with the law, which states (Article 614, paragraph 3) that the clause of the contract establishing a fixed fee or the mechanism for its calculation can not be changed within a year. Thus, in order to legally introduce a variable rent, it is necessary to clearly define the mechanism for calculating it (for example, to link it to the exchange rate).
If the tenant violates the terms of payment, the other party may require an early payment, but not more than two consecutive terms.
Agricultural enterprises very often rent land plotsland, as well as property (buildings, equipment) from individuals who have become the owners of shares (property and land) in the reorganization of agriculture. Rent for land, according to the presidential decree, can not be lower than the established minimum. When leasing land shares, this amount is 1.5% of the value of the plot. The payment for leased property shares must be at least 1% of the value of the property. The latter may also consist of two parts - a bonus to the owner of the property and depreciation charges.
Calculation of rent paid in kindform, is made at prices that must be agreed upon by the parties in the process of concluding the contract. In the case of land leasing, its size should be indexed, adjusted for the inflation factor (unless otherwise specified in the contract). In the case of property rental, such an indexation is not mandatory.
The rent is subject to taxation. The costs of its payment are included in the gross and are subject to income tax. If the payment is made in kind, VAT is charged on it. In the event of the transfer of the property of an individual to the lease, the rental income is included in the taxable income, personal income tax is withheld from it. The tax agent in this case is a tenant enterprise, and it is charged with the obligation to withhold and transfer the personal income tax to the budget from a rent as one of the types of income.