Vehicle lease agreement with crew. What you need to consider when concluding a rental agreement for a vehicle with a crew

16.06.2019

Features of renting a car with a crew?

Rent vehicle with the crew. A waybill is also needed for a rented car. The companies protected the costs of renting and maintaining the property.

Question: The question was about renting a vehicle with a crew, but the answer is all about renting without a crew? I am interested in the specifics of renting with a crew.

Answer: The tenant needs to draw up waybills. Otherwise, it will not be easy to convince the inspectors of the justification for the costs of fuel and lubricants, as well as that the transport was used in production activities. The tax authorities are sure that all organizations should draw up waybills to confirm transport costs, regardless of which vehicles, own or rented, they use (letter of the Federal Tax Service of Russia for Moscow dated 07.07.08 No. 20-12 / 064123.2) .

This means that in order to write off such expenses when calculating income tax, the tenant will need primary documents confirming economic feasibility (Article 252 of the Tax Code of the Russian Federation). Such a document is just a waybill.

Renting a vehicle with a crew means that the lessor does not simply transfer the vehicle (hereinafter - the vehicle) to the lessee for temporary possession and use for a fee. The term "crew" means that in addition to the transfer of the vehicle itself, the lessor, on its own, provides the lessee with services for driving the vehicle and for its technical operation(Article 632 of the Civil Code of the Russian Federation).

You can view the rental agreement for a vehicle with a crew by clicking on the active link:

Accounting with LLC A (lessor)

If car rental is separate view activities of the organization, then the amount rent take into account as part of income from ordinary activities (clause 5 of PBU 9/99). At the same time, in accounting, make the posting:

Debit 62 (76) Credit 90-1 (rent accrued);

Debit 90-3 Credit 68 sub-account "VAT settlements" (VAT is charged on the amount of rent (if the organization's activities are subject to VAT).

If the provision of property for rent is not a separate type of activity of the organization, then include the amount of rent in other income (paragraph 7 of PBU 9/99). In this case, make an entry in the account:

Debit 62 (76) Credit 91-1 (rent accrued).

Income from the lease of property is non-operating, if it does not relate to income from sales (clause 4, article 250 of the Tax Code of the Russian Federation). If an organization leases property on a systematic basis, the costs of such activities are related to the sale (subclause 1, clause 1, article 265 of the Tax Code of the Russian Federation). Accordingly, the income from it must be recognized as part of the sales proceeds.

If the organization uses the accrual method and the transfer of property for rent is one of its main activities, then recognize the income at the date of the sale of this service. By general rule the date of actual provision of rental services is the last day of the month. It is not necessary to draw up an act.

When concluding a rental agreement for a vehicle with a crew, the driver of the vehicle is an employee of the lessor organization, that is, he is in an employment relationship with this organization. Therefore, it is usually this organization that incurs the costs associated with the remuneration of the driver. Payments made to the driver for the performance of his labor duties are taken into account by the lessor for profit tax purposes on the basis of paragraph 1 of Article 255 of the Tax Code of the Russian Federation as part of labor costs.

Accounting with LLC V (tenant)

In accounting, make entries:

Debit 20 (23, 25, 26, 29, 44) Credit 60 (76) (reflected rent);

When calculating income tax, the costs associated with car rental can be taken into account in the amount of actual costs (subclause 10, clause 1, article 264, clause 1, article 252 of the Tax Code of the Russian Federation). In this case, the organization also has the right to consider as part of the expenses:

costs for fuel and lubricants (subclause 2, clause 1, article 253 of the Tax Code of the Russian Federation);
insurance payments, if the responsibility for insurance is assigned to the tenant (subclause 1, clause 1, article 263 of the Tax Code of the Russian Federation, article 646 of the Civil Code of the Russian Federation).

The controlling authorities adhere to a similar point of view (letters of the Ministry of Finance of Russia dated February 13, 2007 No. 03-03-06 / 1/81, dated November 29, 2006 No. 03-03-04 / 1/806, Federal Tax Service of Russia for Moscow dated May 19, 2006 No. 28-11/43420).

If the rent and remuneration for driving the car are specified separately in the car rental agreement with a crew, then it should be borne in mind that for income tax purposes, rental payments and remuneration to the driver are written off as expenses.

The amount of VAT presented by the lessor when providing services for renting a car with a crew, as well as when purchasing fuel and lubricants from VAT taxpayers, the lessee can present for deduction when performing mandatory conditions provided for by subparagraph 1 of paragraph 2 of Article 171 and paragraph 1 of Article 172 of the Tax Code of the Russian Federation.

Since the lease agreement with the crew is concluded with the organization, there will be no personal income tax and contributions.

Rationale

How to confirm fuel consumption

The amount of spent fuel and lubricants must be documented (clause 1, article 9 of the Law of December 6, 2011 No. 402-FZ, clause 1, article 252 of the Tax Code of the Russian Federation). Use the waybill to confirm. Samples waybills, which are used in the operation of trucks and cars, approved by the Decree of the State Statistics Committee of Russia dated November 28, 1997 No. 78. For information on how to fill out a waybill, see How to reflect the purchase of fuel and lubricants for cash in accounting and taxation. *

A waybill is also needed for a rented car

“...Our company is not a motor transport company, we do not have our own transport. All vehicles that we use in our activities are rented by us from other organizations. Do we need to keep waybills in this case? .. "

From a letter from the chief accountant

Yes need. Otherwise, it will be difficult for you to convince the inspectors of the reasonableness of the costs of gasoline and maintenance. And also in the fact that transport was used in production activities. The tax authorities are sure that all companies should draw up waybills to confirm transport costs, regardless of which vehicles, own or rented, they use (letter of the Federal Tax Service of Russia for Moscow dated 07.07.08 No. 20-12 / 064123.2). You can develop the form of the waybill yourself (clause 2, article 9 of the Federal Law of November 21, 1996 No. 129-FZ). The main thing is that it contains data about the location of the car. *

The waybill is drawn up by a company that, under a car rental agreement with a crew, pays for gasoline

Our company rents a car with a crew from another company. The driver is a full-time employee of the lessor. Under the terms of the contract, we pay the cost of gasoline. Who should issue waybills - our company or the landlord? And if we are, then do we need to indicate the data of a driver who is not our employee?

Your organization must issue the waybills. After all, under the terms of the contract, you pay for gasoline. This means that in order to write off such expenses when calculating income tax, you will need primary documents confirming economic feasibility (). Such a document is just a waybill.*

As for the second question, the full name should be indicated in the waybill. driver. It does not matter that he is on the staff of the landlord. This follows from the Mandatory details and the procedure for filling out waybills, approved by order of the Ministry of Transport of Russia dated September 18, 2008 No. 152.

The waybill is drawn up by a company that, under a car rental agreement with a crew, pays for gasoline *

Companies defended the cost of renting and maintaining property

The company has leased several vehicles. The tax authorities demanded documents on their use - waybills, acts for writing off fuel and lubricants, etc. The company did not have these documents, so the inspectors accused the company of unreasonable tax benefit and deducted rental expenses and deductions*

The need to rent a vehicle cannot be proved without documents on its use. According to company representatives, it used the transport at a closed base, where details about its use are not needed. But there was not a single document on the operation of the disputed transport. Therefore, the court agreed with the tax authorities (decision of the Arbitration Court of the East Siberian District dated November 28, 2014 No. A74-385 / 2014)

It is safer to issue waybills, even if the company uses transport only on its territory. After all, many inspectors believe that without these documents, the company will not confirm the reality of the operation of transport. The waybill form can be simplified, but many details are indispensable (see. "UNP" No. 35, 2013, p. 12 “There are more dangerous details in the waybill than in any other primary office”) *

How does a tenant record rental payments in accounting?

Depending on the purpose of using the leased property, reflect: *

or expenses for ordinary activities, if the leased property is used in entrepreneurial activity(for example, rental of production equipment) ();
or other expenses if the leased property is used for non-production purposes (for example, renting a holiday home for employees) (clause 11 PBU 10/99).

In accounting, make postings: *

Debit 20 (23, 25, 26, 29) Credit 60 (76)
- reflects the rent for property that is used in the main activities of the production organization;

Debit 44 Credit 60 (76)
- reflects the rent for property that is used in the main activities of the trade organization;

Debit 91-2 Credit 60 (76)
- reflects the rent for property that is used for non-production purposes.

This accounting procedure is based on the provisions of the Instructions for the chart of accounts.

How does a landlord record rental payments in accounting?

Leasing as a separate activity

If the provision of property for rent is a separate type of activity of the organization, then consider the amount of rent as part of income from ordinary activities (). At the same time, make the posting in accounting: *

Debit 62 (76) Credit 90-1
- the rent has been paid;

Debit 90-3 Credit 68 sub-account "VAT calculations"
- VAT is charged on the amount of rent (if the organization's activities are subject to VAT).

Renting is not a separate activity

Debit 62 (76) Credit 91-1
- Rent paid.

Car rental with crew - taxes and fees

Is it possible to recognize the cost of maintaining the machine *

Consider which expenses associated with the use of the car, the company has the right to write off, and which not.

If the farm repaired the car at its own expense, it will not be possible to take into account the costs. After all, the owner is obliged to repair the car during the rental period. And the farm pays only current expenses: for fuel, washing, parking. This follows from Article 634 of the Civil Code of the Russian Federation.

Dangerous!

If the exact route of the car is not indicated in the waybill, the tax authorities can deduct gasoline costs

To write off gasoline, draw up waybills (letter of the Ministry of Finance dated August 25, 2009 No. 03-03-06 / 2/161). The document must contain the required details approved by the order of the Ministry of Transport dated September 18, 2008 No. 152.

Please note: although there is no route among the details, it is better to register it. This information is required during the tax audit. And some judges support them (determination of the Supreme Arbitration Court of August 30, 2013 No. VAS-11880/13, decision of the FAS of the East Siberian District of July 16, 2010 No. A33-10451 / 2009). Other judges believe that the route of movement is not important (for example, the decision of the Eleventh Arbitration Court of Appeal dated October 11, 2013 No. 11AP-15918/13).

In practice, many organizations, instead of the exact route, make a note “around the city” in the waybills. After all, during the day the driver can call in many places. The inspectors believe that the route should contain all the addresses and names where they went on business. To avoid disputes, add route information to the directions form. Specify the entire route of the car. In addition to the waybill, you will need checks and receipts for paying for fuel and lubricants.

Crib

What are car rental agreements?

There are two types of car rental agreements: rental with a crew (Articles 632-641 of the Civil Code of the Russian Federation) and without a crew (Articles 642-649 of the Civil Code of the Russian Federation). In the case of a crewed rental, the owner provides the car to the tenant and drives it himself. Such a contract is called a mixed contract. After all, the owner of the car rents it out and provides a service.

From a magazine article

Car rental: features of tax accounting of expenses

We have already considered the procedure for recognizing in tax accounting the costs of maintaining company vehicles owned by an organization 1 . However, often the organization uses rented vehicles in its activities. What additional costs does she have in such a situation?

Many organizations that need vehicles in their activities, but do not have enough funds to purchase them, can rent them. The interested parties of such a transaction are the tenant and the landlord. Relations between them are regulated by the vehicle lease agreement.

General provisions on the lease agreement*

Article 606 Civil Code Under a lease agreement, the lessor undertakes to provide the lessee with property for a fee for temporary possession and use or for temporary use. The lease agreement is concluded in writing. It must contain information that allows you to unambiguously identify the property being leased. With regard to a car rental agreement, such data are its make, year of manufacture, color, body and engine number, state registration number and etc.

Articles 632 and 642 of the Civil Code of the Russian Federation state that organizations (lessees) have the right to conclude a vehicle lease agreement with or without a crew. Both types of contracts are concluded with both legal entities and individuals. At the same time, an individual (lessor) may be an employee of the organization or a citizen who is not associated with this organization by labor relations, or the lessor may be individual entrepreneur. The type of the executed contract depends on the composition of the expenses of the lessee and the lessor, which they carry out in relation to the rented (leased) car, as well as the specifics of their tax accounting.

Rent a car with a crew

The organization concludes a vehicle rental agreement with a crew when a car with a driver is needed. On the basis of such an agreement, the lessor provides the lessee with a vehicle for a fee for temporary possession and use, and also provides services for its management and technical operation on its own (Article 632 of the Civil Code of the Russian Federation). That is, at the conclusion of the specified contract, the tenant receives both the car and the driver from the lessor.

Distribution of expenses between the parties to the lease*

The Civil Code defines the costs that the parties must bear when concluding a rental agreement for a vehicle with a crew. So, landlord during the entire term of the contract must maintain the proper condition of the leased vehicle, including the implementation of the current and overhaul and the provision of necessary supplies. The basis is Article 634 of the Civil Code of the Russian Federation. This obligation is directly assigned to the landlord by the Civil Code and cannot be changed by the lease agreement.

For tenant a mandatory expense when renting a car is the rent. According to article 614 of the Civil Code of the Russian Federation, the tenant is obliged to pay a fee for the use of property in a timely manner. The procedure, conditions and terms for paying the rent are determined by the lease agreement. As a rule, the rent is fixed in the form of fixed sum payments, which are made at a time or periodically.

As for the remaining costs specified in the Civil Code for each party, they are mandatory only if the lease agreement does not provide for a different procedure. So, according to articles 635, 636 and 637 of the Civil Code of the Russian Federation landlord must cover the costs of paying for the services of the driver and his maintenance, as well as the costs of car insurance, and tenant- expenses incurred in connection with commercial exploitation vehicle, including the cost of paying for fuel and other consumables during the operation of materials and for paying fees. But as mentioned above, the lease agreement can distribute these costs between the parties to the lease transaction in a different way.

Specifics of accounting for expenses for tax purposes

income tax. All the costs listed above can be taken into account by the organization renting a vehicle with a crew, and the organization renting it for profit tax purposes. Of course, subject to the requirements of Article 252 of the Tax Code of the Russian Federation.*

Repair and maintenance costs and maintaining the rented car in good condition are reflected by the lessor as expenses related to production and sale, in accordance with subparagraph 2 of paragraph 1 of Article 253 of the Tax Code of the Russian Federation. At the same time, the costs of current and major repairs of the rented car reduce tax base for income tax as part of other expenses (clause 1, article 260 of the Tax Code of the Russian Federation).

rent for the use of the car, the tenant includes in other expenses that reduce taxable profit, on the basis of subparagraph 10 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation. The date of such expenses under the accrual method is recognized (subclause 3, clause 7, article 272 of the Tax Code of the Russian Federation): *

date of settlements in accordance with the terms of the concluded contracts;
the date of presentation to the taxpayer of documents serving as the basis for making calculations;
the last day of the reporting (tax) period.

Generally, lease payment costs are charged to other expenses on the date the contract is settled. If there is no such condition in the contract, expenses are recognized on the date of presentation to the tenant organization of the documents that serve as the basis for making settlements under the contract, or on the last day of the reporting (tax) period.

Driver services. When concluding a rental agreement for a vehicle with a crew, the driver of the vehicle is an employee of the lessor organization, that is, he is in an employment relationship with this organization. Therefore, it is usually this organization that incurs the costs associated with the remuneration of the driver. Payments made to the driver for the performance of his labor duties (maintenance of a rented car), the lessor, for the purposes of taxation of profits, takes into account on the basis of paragraph 1 of Article 255 of the Tax Code of the Russian Federation as part of labor costs.

If the said costs are the expenses of the lessee, then they are taken into account as part of the expenses of this taxpayer in accordance with paragraph 21 of Article 255 of the Tax Code of the Russian Federation. According to this subparagraph, the composition of labor costs includes payments to employees who are not on the staff of the taxpaying organization for the performance of work by them under civil law contracts. *

Fuels and lubricants(Fuel) rented car is usually provided by the tenant. When calculating income tax, he has the right to take into account the cost of these materials as material expenses on the basis of subparagraph 2 of paragraph 1 of Article 254 of the Tax Code of the Russian Federation, if fuels and lubricants are purchased for a car used directly for production needs. If the car is used for management purposes, then the cost of acquiring fuel is included in the cost of maintaining company car in accordance with subparagraph 11 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation. In a similar manner, these costs are taken into account by the lessor, if these costs are assigned to him in accordance with the lease agreement.

Insurance costs. The operation of the car is impossible if there is no OSAGO insurance policy. In addition, the lease agreement may provide for voluntary car insurance as a prerequisite (Article 637 of the Civil Code of the Russian Federation). Both the lessor and the lessee have the right to bear the costs of compulsory and voluntary insurance. In the tax accounting of both parties, they are reflected in accordance with paragraphs 1 and 2 of Article 263 of the Tax Code of the Russian Federation.

Please note: expenses that, according to the Civil Code, are not mandatory for an organization, are taken into account for profit tax purposes only if they are assigned to the organization in accordance with the lease agreement. Otherwise, the organization is not entitled to recognize them in tax accounting.

Value Added Tax. The amount of VAT presented by the lessor when providing services for renting a car with or without a crew, as well as when purchasing fuel and lubricants from VAT taxpayers or repairing a rented car, the lessee can claim for deduction if the mandatory conditions provided for in subparagraph 1 are met paragraph 2 of article 171 and paragraph 1 of article 172 of the Tax Code of the Russian Federation.*

Documentary evidence of expenses

As already noted, both parties to the rental agreement for a vehicle with a crew can recognize all the above expenses when taxing profits only if the requirements of paragraph 1 of Article 252 of the Tax Code of the Russian Federation are met, that is, the costs are economically justified, documented and made to carry out activities aimed at obtaining income. What documents do the tenant and the landlord need to have in order to justify the costs associated with the rental object?

Repair costs. If the car is repaired by the lessor on your own, then the documents confirming these costs include an estimate repair work, a defective list, an invoice for purchased spare parts and an act on the write-off of used spare parts. The cost of repairing a car made by a specialized contractor is confirmed by a contract for the performance of work (contract), an act of acceptance of work performed, an invoice and payment documents for payment for repairs. In addition, both when repairing a car on its own, and when repairing it in a specialized organization, information about the work performed must be reflected in the act of acceptance and delivery of repaired fixed assets in the form No. OS-3 2 and the inventory card of the car in the form No. OS -6 2 .

Rent. Documentary evidence of expenses in the form of rent under a vehicle rental agreement with a crew is a lease agreement, acceptance certificates for services rendered, documents on payment of rental payments, as well as other documents confirming the use of the rented vehicle by the tenant for production purposes. Such documents, in particular, include the order of the head of the organization on assigning rented cars to employees and applications for the use of rented cars. Copies of waybills must also be attached to these documents, which will allow you to determine the regularity and time of use, as well as the route of movement of the rented cars.*

Costs for fuels and lubricants must be confirmed by documents on the acquisition and consumption of fuel. When purchasing fuel and lubricants for cash, supporting documents are cash receipts, which the person paying for the fuel must attach to advance reports. If fuel and lubricants are paid for by non-cash funds, then their purchase is confirmed by acts on the amount of fuel supplied, which the organization receives from petrol station, with which she has concluded an appropriate agreement, and payment documents for payment.

The amount of fuel consumed is confirmed by waybills.

In order to profit taxation all costs associated with the maintenance of a rented vehicle are taken into account by the parties to the car rental agreement without a crew in the same manner as when concluding a car rental agreement with a crew. The exception is the cost of wages for the driver of the car, which in this case is an employee of the tenant organization. Specified expenses reduce the tax base for income tax from the tenant on the basis of paragraph 1 of Article 255 of the Tax Code of the Russian Federation.

All expenses incurred are confirmed by the same documents as in the rental agreement for a vehicle with a crew.

VAT. Value added tax charged to the organization-lessee (lessor) when acquiring commodity values, performing (rendering) works and services related to the rented car, this organization has the right to accept for deduction if the necessary conditions specified in Articles 171 and 172 of the Tax Code of the Russian Federation are met. *

Answered by Vladislav Volkov,

Deputy Head of the Department for Personal Income Taxation and Administration of Insurance Contributions of the Federal Tax Service of Russia

“The inspectors will compare the income of individuals in 6-personal income tax with the amount of payments in the calculation of insurance premiums. Inspectors will apply this control ratio from the reporting for the first quarter. All control ratios for checking 6-NDFL are given in. For instructions and samples of filling out 6-personal income tax for the first quarter, see the recommendation.

Leasing practices, i.e. in rental, various vehicles are now widely distributed. It is a rather profitable option for solving problems for individuals and legal entities that are either related to work on vehicles, but do not own them, or need a short-term lease of a certain vehicle.

If the customer (tenant) does not have his own driver for this transport the practice of renting a vehicle (vehicle) together with the crew is used, even if the crew consists of one person - the driver. This type of lease is especially widespread in the field of railway, air transport, as well as swimming facilities.

It is necessary to distinguish between renting a vehicle and leasing, which is actually the purchase of this vehicle on a long-term basis. legal difference consists in the fact that during leasing the lessee assumes almost all rights (with the exception of the right of ownership), and equally responsibility for the vehicle, while during the lease they remain with the lessor - the owner of the property.

From the point of view of legislation, namely the Civil Code of the Russian Federation, the subject of a vehicle rental agreement, regardless of whether it is with or without a crew, are objects that meet the following conditions:

This technical device, capable of moving in space, the main purpose of which is the transportation or towing of passengers, their luggage and other cargo;
it is an object that is a source of increased danger;
this is an object, the use of which is possible only in accordance with the regulations of the transport legislation.

Thus, only the following fall under the concept of renting a vehicle:

Cars - trucks and cars.
River and sea vessels designed to carry passengers and cargo.
Railway wagons and/or trains.
Aircraft (aircraft) for transport or passenger purposes.

Rent special equipment such as construction (excavators, bulldozers, cranes), road (combined road cars), forest (harvesters), etc. issued under separate lease agreements. Special equipment does not fall under the category, because transportation of people and goods is not the main purpose of these machines, but an accompanying opportunity. Although a lot will depend on whether the special device based on a car or has a separately designed base.

Horse-drawn transport ( horse-drawn carriage) can only be rented as movable property, because not considered a source of increased danger.

Bicycle or motorized vehicle internal combustion less than 50 cu. see (for example, a moped) also cannot be the subject of a vehicle rental agreement, because you don’t need a license to drive it (by the way, this item can additionally be attributed to horse-drawn transport).

The subject of the lease agreement must be, according to the Civil Code of the Russian Federation, exhaustively described, that is, in the agreement, in the appropriate column, all essential characteristics must be indicated that allow the object to be identified. These include:

Vehicle type and characteristics, for example " a car With gasoline engine with a power of 100 hp”.
Make and/or model.
All identification numbers, including state registration number, VIN number and others, if any.
Color.
Other essential conditions, for example, existing external and internal defects, established special equipment(if any), etc.

In addition, in the same column it is necessary to reflect whether there are any restrictions and encumbrances associated with the vehicle, the purpose of its use (in order to avoid inappropriate use), a set of documents transmitted simultaneously with it and other data that allow describing the subject of the contract in as much detail as possible and all obligations associated with it.

Peculiarities

In the legal aspects of renting a vehicle with a crew, there are a number of features. First, it actually combines two types of obligations: obligations for an inanimate object that is the subject of the contract (transport), and obligations to pay for the services of the crew.

The total payment for the rental of a vehicle is called freight, the phenomenon itself is called chartering. The fee consists of the cost of the rental itself and payment for the services of the crew, taking into account taxation. In this case, the vehicle may be owned by one or more crew members, most often this applies to cars.

The practice of renting a car with a crew from individual allows many companies to take the driver out of state if his services are required on an occasional or short-term basis - for example, delivering employees home after work. In this case, it is often more profitable to conclude a contract, according to which the person - the owner of the vehicle - transfers to the lessee on the terms of paid possession, for a specified period, his vehicle and provides services for driving it.

At the same time, according to Article 645 of the Civil Code of the Russian Federation, the duties of technical operation (and not just management) are also transferred to the crew "as a set".

For the duration of the lease (should be specified in the contract), the lessee becomes the owner of the vehicle, but the lessor bears some related obligations. For example, for compensation for damage in the event of an accident that occurred through the fault of the crew.

In addition, when drawing up a contract for renting a vehicle with a crew, it is necessary to carefully detail all current expenses, including fuel and lubricants.

Necessity

The most common case in practice is rental of an extremely expensive vehicle, whose temporary services are provided by the owner company, for example, a ship or aircraft.

The management of such a vehicle requires high and narrow qualifications, therefore it is chartered together with the crew, which actually turns out to be in double subordination - from the lessee (within the agreed limits, for the time of the charter) and from the lessor, who is registered permanently.

Also, such an agreement is often drawn up employee transportation services for a company that does not have its own fleet. On the basis of such an agreement, an agreement can be concluded with a personal driver for a director who provides services in his car.

In addition, renting a vehicle with a crew can be an outlet for the taxi service, which, according to the laws being enacted, need to work only with drivers who have. At the same time, a taxi driver's license can only be obtained by being officially employed in a taxi company, or by being registered as an individual entrepreneur.

Taxation

Renting a vehicle with a crew can affect taxation in a variety of ways. Tenant does not pay transport tax if the vehicle is registered to the lessor, even if the vehicle is registered with the traffic police or other regulatory authorities (for different types TC, respectively).

For value added tax (), the VAT indicated in the invoice, which accompanies the transfer of the vehicle with the crew, is deductible.

Income tax when working on rented equipment is paid in the amount reduced by the amount of the rent. In this case, the rent is referred to as “other” expenses.

taxes associated with salary crew, a legal or natural person acting as a tenant does not pay. The salary of the crew/driver is paid by his direct employer - the lessor, to whom the lessee transfers a fixed fee for the freight.

The landlord also bears the accompanying tax burden. But if the landlord-owner is an individual, then personal income tax on these incomes is unambiguously payable and transferred to the budget at the place of registration of the tenant.

No contributions to extra-budgetary funds are subject to payment, with the exception of the insurance fee to the FSS “for injuries”. It can be transferred from the rent to the local branch of the FSS, but only if it is provided for by the lease agreement itself.

Sample

The contract for renting a vehicle with a crew is one of the standard ones. There are no special forms for it, the landlord can draw it up himself in a free form, usual for any lease agreements. The main thing is to take into account some important nuances.

The vehicle must be described in as much detail as possible in order to further identify it. In the case of technically especially sophisticated means it is recommended to separately mention the models, serial numbers And specifications the main components of the device, in order to avoid fraud associated with their replacement with cheaper ones. The tenant should pay attention to the defects with which the transport is rented. If there are any, they should be noted in the contract, for example, "The vehicle has a scuff on the right wing 10 cm long and 2 wide." This will avoid charges of damage to the vehicle upon its return.
All optional equipment The vehicle, such as a navigator, a walkie-talkie, a GPS sensor, a taximeter and a tachometer, must be mentioned separately in the contract.
It is necessary to indicate the purpose for which the vehicle is rented: chartering a sea vessel for transporting cargo from point A to point B, renting a car for evening transportation of employees, etc. For other purposes, the rented vehicle will no longer be able to be used, thus the lessor will avoid the costs associated with excessive generation of motor resources.
Specify the lease term. At the same time, it is indicated simultaneously for the rental of the vehicle itself, and for the work of the attendant crew. If a shorter period of crew work is indicated than the period of the lease itself, the court may regard this as two different contracts.
If you do not specify a term, the contract will be considered indefinite. At the same time, the tenant has the right to use the vehicle as long as he consistently pays the rent, does not use it in an inappropriate way and does not allow it to be damaged (the development of a motor resource does not count).
The contract should mention the working conditions of the crew, which the tenant will actually provide, if these conditions are significant.
Specify that the payment for the services of the lessor for the management of the vehicle is included in the rent, or provide for the division of the amounts into the payment for the actual rental of the vehicle and the payment for the services for driving it. Clearly indicate the amount of the fee, the timing of payment, or attach a formula for calculating the fee if the nature of the work is that it is “floating”.
Provide insurance terms. By default, it lies with the landlord, but can be fully or partially shifted to the tenant.

Deadline and procedure for transfer

The term in this case essential condition does not count. If a specific date is not set, then the contract will be considered open-ended - the law allows this. But you need to know that, according to Article 610 of the Civil Code of the Russian Federation, either party can terminate it at any time by notifying the other party no later than a month in advance.

In the “Transfer Procedure” section, it is necessary to indicate in which place the property will be transferred to the tenant (at the place of its storage, at the location of any of the parties, etc.), provide a document confirming the fact of transfer - or this is an act of acceptance and transfer or the lease itself. Similar conditions should be prescribed for the procedure for the return of property.

Features of drawing up a vehicle rental agreement with a crew are discussed in detail in this video.

The document form “Vehicle rental agreement with a crew” refers to the heading “Vehicle rental agreement”. Save the link to the document on social networks or download it to your computer.

Vehicle rental agreement with crew

d. [place of conclusion of the contract] [date of conclusion of the contract]

[Information about the landlord - full name and passport data for an individual; full name and information about the person who signed the contract - for legal entity], hereinafter referred to as the "Lessor", on the one hand and

[information about the tenant - full name and passport data for an individual; full name and information about the person who signed the agreement - for a legal entity], hereinafter referred to as the "Lessee", on the other hand, and collectively referred to as the "Parties", have concluded this agreement as follows:

1. The Subject of the Agreement

1.1. Under this agreement, the Lessor undertakes to provide the Lessee with a vehicle for a fee for temporary possession and use and provides services for its management and technical operation on its own.

1.2. The services provided to the Lessee by the Lessor for the management and technical operation of the vehicle must ensure its normal and safe operation in accordance with the purposes of the lease specified in this agreement.

1.3. The leased vehicle - [type, name, state registration number and other identifying data] is in good condition that meets the requirements for the operation of vehicles.

1.4. The purpose of using the vehicle is [fill in as appropriate].

2. Duration of the contract

2.1. The lease agreement is concluded for the period of [insert as appropriate].

3. Rights and obligations of the Parties

3.1. The lessor is obliged:

3.1.1. during the entire term of the contract, maintain the proper condition of the leased vehicle, including the implementation of current and major repairs and the provision of necessary accessories;

3.1.2. insure the vehicle and liability for damage that may be caused by it or in connection with its operation.

3.2. The tenant is obliged:

3.2.1. bear the costs arising in connection with the commercial operation of the vehicle, including the cost of paying for fuel and other consumables during the operation of materials, and for paying fees.

3.2.2. pay rent on time;

3.2.3. upon termination of the lease agreement, return the vehicle to the Lessor in the condition in which he received it, taking into account normal wear and tear;

3.3. The Lessee has the right, without the consent of the Lessor:

3.3.1. to sublease the rented vehicle;

3.3.2. as part of the commercial operation of the leased vehicle, on its own behalf, conclude transportation and other agreements with third parties, if they do not contradict the purposes of using the vehicle specified in this lease agreement.

4. Rent

4.1. The rent is [amount in figures and words] rubles per month.

4.2. The rent for the first and last payment months, if they are incomplete, is calculated in proportion to the number of days in a particular calendar month.

4.3. The Lessee pays the fee for the use of the vehicle every month in advance on the first day of each month in the amount specified in clause 4.1. actual agreement.

4.4. The Lessee is exempted from paying rent for the time during which the vehicle was unusable due to a malfunction, unless the unsuitability of the vehicle occurred through the fault of the Lessee.

5. Responsibility of the Parties

5.1. The Lessor shall be liable for defects in the leased vehicle that completely or partially impede the use of it, even if he was not aware of these defects at the time of concluding this agreement.

5.2. The Lessor is not responsible for the shortcomings of the leased vehicle, which were specified by him at the conclusion of this agreement or were known to the Lessee in advance or should have been discovered by the Lessee during the inspection of the vehicle or checking its serviceability when concluding the contract or transferring the vehicle for rent.

5.3. In case of destruction or damage to the rented vehicle, the Lessee is obliged to compensate the Lessor for the losses caused, if these circumstances occurred through the fault of the Lessee.

5.4. Responsibility for damage caused to third parties by the rented vehicle, its mechanisms, devices, equipment, is borne by the Lessor.

5.5. The Lessor has the right to present to the Lessee a recourse claim for reimbursement of amounts paid to third parties, if he proves that the damage was caused by the fault of the Lessee.

6. Early termination of the lease agreement

6.1. At the request of the Lessor, this agreement may be terminated ahead of schedule in cases where the Lessee:

6.1.1. uses a vehicle with a material violation of the terms of this agreement or the purpose of the vehicle, or with repeated violations;

6.1.2. significantly degrades the vehicle;

6.1.3. more than twice in a row after the expiration of the payment period established by the agreement does not pay the rent.

6.2. At the request of the Tenant, this agreement may be terminated ahead of time by the court in cases where:

6.2.1. The Lessor does not provide the vehicle for use to the Lessee or creates obstacles to its use in accordance with the terms of this agreement or the purpose of the vehicle;

6.2.2. the vehicle transferred to the Lessee has defects preventing its use, which were not specified by the Lessor when concluding the contract, were not known to the Lessee in advance and should not have been discovered by the Lessee during the inspection of the vehicle or checking its serviceability when concluding the contract;

6.2.3. the vehicle, due to circumstances for which the Lessee is not responsible, will be in a condition unsuitable for use.

7. Final provisions

7.1. This agreement is made in 2 authentic copies - one for each of the Parties.

7.2. This agreement comes into force from the moment of its signing and is valid until [date, month, year].

7.3. Any disputes arising from this agreement or in connection with it, the Parties will try to resolve through negotiations, and in case of failure to reach an agreement - in judicial order.

8. Details and signatures of the Parties

Landlord Tenant

[fill in] [fill in]

It is no secret that office work has a negative impact on both the physical and mental state of the employee. There are quite a lot of facts confirming both.
At work, each person spends a significant part of his life, so it is very important not only what he does, but also who he has to communicate with.

The lease agreement is one of the most common civil law transactions. Very often, vehicles are the subject of a lease agreement. The current legislation carefully regulates the procedure and rules for concluding a vehicle rental agreement with a crew. In particular, it is devoted to these legal relations.

Features of compiling a document

Subject of the contract

On the basis of a vehicle rental agreement with a crew, the lessor provides the lessee with a vehicle for temporary use, as well as provides management and technical maintenance services, and the lessee undertakes to pay the agreed amount of money.

Important! The rental contract for a vehicle with a crew must be concluded for a certain period of time. In particular, the rules on the renewal of this agreement for indefinite term and on the pre-emptive right of the tenant to conclude an agreement for new term do not apply to this species contracts.

In the text of the contract, it is necessary to clearly indicate the details of the vehicle that is being rented. At the same time, on the basis of one contract, several vehicles can be leased at once. IN similar situations in practice, a separate application is drawn up, which indicates the entire list of vehicles. Of course, this application becomes an integral part of the vehicle rental agreement with crew.

In practice, there are cases when the territory or region of operation of vehicles is also indicated.

Important! In the contract, it is desirable to indicate the entire list of obligations of the lessor, which are associated with the provision of services for the management and maintenance of the vehicle.

The contract must also indicate that the crew members who will operate the leased vehicles are employees of the lessor and remain in this position until the end of the contract.

Rent

In the text of the contract, it is necessary to clearly indicate the amount of the monthly rent. In practice, the hourly payment scheme is mainly used. In particular, the parties set a certain amount of money as hourly rent, and the amount payable per month is the sum of the cost of services rendered using the rented vehicles.

For every billing period an act is drawn up, which indicates the amount to be paid. If the tenant agrees with the specified amount, then he signs the act and transfers the specified amount of money to the landlord. As a rule, the rent is paid by bank transfer.

In addition, the landlord and tenant must agree in the text of the agreement on the following issues:

rights and obligations of the parties;
the responsibility of each of them;
procedure for terminating the contract.

Essentially, this standard conditions agreements that the parties may freely agree among themselves.

Completed sample document

Agreement No.
rental of vehicles with a crew

_____________ "___" ____________ 20__

Hereinafter referred to as the "LEASEHOLDER", represented by _____________________________________________, acting on the basis of ________, on the one hand, and ____________, hereinafter referred to as the "LESSOR", represented by _______________________________________, acting on the basis of ______________, have entered into this agreement as follows:

1. Subject and general conditions of the contract

1.1. The subject of this lease agreement is the provision by the Lessor
for a fee for temporary possession and use to the Lessee of vehicles with
crew, as well as services for driving vehicles and their technical
maintenance (maintenance) and operation.

1.2. Vehicles are provided to the Tenant for transportation from the airport to Moscow, to the airport from Moscow, in Moscow and the Moscow Region, to the management, as well as, in case of operational need, to the Tenant's employees, in order to:

ensuring the safety of documents constituting confidential information,
ensuring the safety of electronic media containing confidential information,
enabling business telephone conversations,
ensuring the possibility of uninterrupted work during the period of movement,
ensure timely arrival at destinations,
maintaining the image of the Tenant.

1.3. The objects of lease under this agreement are passenger vehicles. The list of cars with a crew provided for sublease and their contractual cost hourly rental outlined
to this agreement.

1.4. At the time of the conclusion of this agreement, the leased vehicles belong to the Lessee on the basis of the right of ____________________, which is confirmed by ____________________________________________________________. At the time of the conclusion of this agreement, vehicles are not pledged, not arrested, and are not the subject of claims by third parties. Non-observance (violation) of the above is the basis for invalidating this lease agreement.

1.5. The leased vehicles must be in good condition that meets the requirements for vehicles in use used for industrial, consumer, commercial and other
goals in accordance with design purpose rental vehicle.

1.6. The parties to the agreement agreed that the services provided by the Lessor under the agreement for the management and technical operation of the leased vehicles should ensure their normal and safe operation in accordance with the purposes of the lease under this agreement.

1.7. The Lessor has confirmed that the composition of the crew of the leased vehicle and the qualifications of its members meet the rules and conditions of the contract binding on the parties, the requirements of the normal practice of operating a vehicle of this type.

1.8. The crew members of the leased vehicle during the term of this lease agreement remain the employees of the Lessor and obey his orders related to the issues of driving the vehicle,
technical maintenance (maintenance) and operation.

The crew of the Lessor's vehicle is subject to the Lessee's instructions regarding the commercial operation of the rented vehicle.

1.9. The Lessee is not entitled, without the consent of the Lessor, to conclude commercial transportation contracts with third parties on its own behalf.

1.10. Responsibility for harm (damage) caused by the rented vehicle, its mechanisms, devices, equipment to third parties is borne by the Lessor, who is not entitled to present any claims to the Lessee for reimbursement of funds paid to third parties in order to compensate for the damage caused by the rented vehicle.

2. The lessor undertakes:

2.1. Provide vehicles on time and in accordance with the Lessee's requests. The application template is attached to this contract.

2.2. In the presence of the Lessee under the lease agreement, check the serviceability of the leased vehicle.

2.3. Throughout the term of the contract, maintain proper technical condition leased vehicle, including the implementation of regular regulatory Maintenance, maintenance and overhaul and provision of necessary spare parts and other accessories.

2.4. In the event of a complete failure during the term of the contract of the leased vehicle, in agreement with the Lessee, consider the possibility of replacing such a vehicle with a similar one with a crew. A change in the list of vehicles () leased is issued additional agreement in accordance with .

2.5. Bear all costs associated with driving services, including fuel costs, paid parking, services of crew members, etc.

3. The tenant undertakes:

3.1. Use the leased vehicle with a crew in accordance with the terms of this agreement and exclusively for the direct production and consumer purpose of the named vehicle.

3.2. Within the terms agreed by the parties to this agreement, pay the rent for the use of the leased vehicle with a crew.

4. Liability for loss and damage to the vehicle

4.1. The Lessee shall not be liable to the Lessor for damages related to
loss or damage to the rented vehicle with a crew, if any occurred through the fault of the Lessee.

4.2. The Lessor is responsible for the actions of the crew, as well as for causing harm to the Lessee's employees who are in the vehicle while the vehicle with the crew is on lease.

5. Rent under the contract and payment procedure

5.1. The monthly cost of services under this Agreement is the sum of the cost of the total volume of services rendered on the basis of Applications per month.

5.2. The cost of hourly rental of a vehicle with a crew is specified in Appendix No. 1 to this agreement.

5.3. Rental payments are transferred by the Tenant to the settlement account of the Lessor at the end of each calendar month until the 30th day of the next month on the basis of an act of reconciliation of settlements, an act on the provision of services for renting a vehicle with a crew.

5.4. On the last day of the reporting month, the Lessor undertakes to submit to the Lessee an Act on the provision of services for the rental of vehicles with a crew and an invoice drawn up in accordance with and Decree of the Government of the Russian Federation No. 1137 dated December 26, 2011 No.

5.5. The amount (cost) of the rent, if necessary and objective realities, may be changed during the term of the agreement by agreement of the parties within the time limits that can be additionally determined by the parties to the lease agreement, but not more than once a year.

6. Liability of the parties and force majeure

6.1. A party to a contract whose property interests (business reputation) have been violated as a result of non-fulfillment or improper fulfillment of obligations under the contract by the other party, has the right to demand full compensation for the losses caused to it by this party, which means the costs that the party whose right has been violated has made or will make to restore their rights and interests; loss, damage or damage to property (actual damage), as well as lost income that this party would have received under normal business conditions if its rights and interests had not been violated (lost profits).

6.2. Any of the parties to this agreement that has not fulfilled its obligations under the agreement or has performed them improperly, is liable for the above if there is fault (intent or negligence).

6.3. The absence of guilt for non-fulfillment or improper fulfillment of obligations under the contract is proved by the party that violated the obligations.

6.4. A party that has not fulfilled or improperly fulfilled its obligations under the contract when fulfilling its conditions shall be liable unless it proves that the proper fulfillment of obligations turned out to be impossible due to
force majeure (force majeure), i.e. extraordinary and unavoidable circumstances under specific conditions of a specific period of time. The parties to this agreement considered force majeure circumstances as follows: natural phenomena (earthquake, flood, lightning strike, volcanic eruption, mudflow, landslide, tsunami, etc.), temperature, wind force and precipitation level at the place of fulfillment of obligations under the agreement, excluding normal life activity for a person; moratorium of authorities and administration; strikes organized in the manner prescribed by law, and other circumstances that may be determined by the parties to the contract as force majeure for the proper performance of obligations.

6.5. The party affected by force majeure circumstances is obliged to notify the other party of this no later than 30 calendar days from the date of occurrence of such circumstances.

6.6. Failure to notify or untimely notification of the occurrence of force majeure circumstances does not give the right to refer, if it is impossible to fulfill one's obligations under the contract, to the occurrence of force majeure circumstances.

6.7. Side, disenfranchised refer to the occurrence of force majeure circumstances, is liable in accordance with the current legislation of the Russian Federation.

7. Procedure for resolving disputes

7.1. Disputes that may arise during the performance of the terms of this agreement, the parties will seek to resolve amicably through pre-trial proceedings: through negotiations, exchange of letters, clarification of the terms of the agreement, drawing up the necessary protocols, additions and changes, exchanging telegrams, faxes, etc. At the same time, each one of the parties has the right to claim that it has in writing the results of resolving the issues that have arisen.

7.2. If a mutually acceptable solution is not reached, the parties have the right to refer the disputed issue for resolution in court in accordance with the current legislation of the Russian Federation.

8. Protection of the interests of the parties

8.1. For all issues that have not found their solution in the text and conditions of this agreement, but directly or indirectly arising from the relations of the parties under it, affecting the property interests and business reputation of the parties to the agreement, bearing in mind the need to protect their legally protected rights and interests, the parties to this agreement will be guided by the norms and provisions of the current legislation of the Russian Federation.

9. Amendment and / or addition to the contract

9.1. This agreement may be amended and / or supplemented by the parties during the period of its validity on the basis of their mutual consent and the presence of objective reasons that caused such actions of the parties.

9.2. Any agreements of the parties to change and / or supplement the terms of this agreement are valid if they are executed in writing, signed by the parties to the agreement and sealed by the parties.

10. Possibility and procedure for termination of the contract

10.1. This agreement may be terminated by agreement of the parties.

10.2. The agreement may be terminated by the court at the request of one of the parties only in case of a material violation of the terms of the agreement by one of the parties, or in other cases provided for by this agreement or current legislation.

Violation of the terms of the contract is recognized as significant when one of its parties has committed an action (or inaction) that causes such damage to the other party that further action the contract loses its meaning, since this party is largely deprived of what it expected when concluding the contract.

10.3. The consequences of termination of this agreement are determined by mutual agreement of the parties to it or by the court at the request of any of the parties to the agreement.

11. The validity of the contract in time

11.1. This agreement shall enter into force from the date of its signing by the parties, from which it becomes binding on the parties that have concluded it, and is valid until "___" _____________ 20___.

11.2. Termination (expiration) of the term of this agreement entails
termination of the obligations of the parties under it, but does not relieve the parties to the agreement from liability for its violations, if any, occurred during the performance of the terms of this agreement.

11.3. Applications:

I. The list of vehicles and the cost of rent - Appendix No. 1.

II. Application No. / for 201__

12. Legal addresses of the parties

12.1. In case of change legal address or bank details, the parties to the agreement are obliged to notify each other within 5 days.

12.2. Details of the parties:

LESSOR

TENANT

Application No. 1
to Agreement No. ____
from "___" ___________ 20___

List of vehicles and contractual cost of rent

We, the undersigned, the “LEASEHOLDER”, represented by ________________________________________________, acting on the basis of __________, on the one hand, and the “LESSOR”, represented by ______________________________________, acting on the basis of ___________________, on the other hand,

we certify that the parties have reached an agreement on the list of vehicles provided for rent with a crew and the amount of the contractual cost of the rent from "____" ___________ 20____ in the amount of:

car model	The contractual cost of rent per hour for the total number of rental hours for all leased motor vehicles with crew per month, (in rubles)
	up to 30 hours	from 30 to 60 hours	over 60 hours

Signatures of the parties:

LESSOR TENANT

The lease agreement for special equipment with the crew is fraught with a number of nuances. The managing partner will help us deal with them. law firm“Law and Practice” Alexey Nikitin

It should be noted that lease agreements often do not refer to vehicles in their formal strict meaning (cars, trailers), but, for example, to special equipment (excavators, bulldozers, loaders, etc.), equipment ( tower cranes) or even about aircraft and ships.

Let us consider in detail 6 points that must be provided for in the contract.

Is it necessary to have a written lease agreement?

Failure to comply with the form of the contract entails its invalidity. If the equipment was received / transferred without drawing up an agreement, and the fact of the provision of services was recorded, for example, by issuing and paying invoices, then the parties may have serious problems in the correct legal qualification of relationships and obtaining judicial protection of their rights.

How to renew the lease agreement?

Subject to the provisions of the previous paragraph, for each new period, the tenant and the landlord must conclude a written agreement, the absence of which entails the invalidity of the lease.

Search necessary equipment or spare parts has become even easier - leave and they will call you back.

What information should be indicated in the item "subject to lease"?

It is necessary to indicate the individualizing features of the property - state registration number, model, brand, year of manufacture, color, engine and body number, power, etc. Lack of individual characteristics of the property (for example, the parties simply indicated bulldozer Caterpillar, without numbers, etc.) may result in the recognition of this agreement as not concluded.

Who bears the cost of the repair of special equipment?

During the entire term of the contract for the lease of special equipment with a crew, the lessor is obliged to maintain the proper condition of the leased equipment, including the implementation of current and major repairs and the provision of necessary accessories. This rule is imperative and cannot be changed by agreement of the parties. The provision of the agreement on a different distribution of repair costs is void, which is confirmed by the current judicial practice.

How to properly allocate the cost of maintaining special equipment?

As a general rule, the lessee bears the costs arising in connection with the commercial operation of special equipment, including the cost of fuel and other consumables during the operation of materials and the payment of fees. But the parties have the right to establish in their agreement a different procedure for the distribution of expenses, and the lessor can take them in whole or in part.

Rent: what should be included in the contract?

The rent may consist of a single payment or be divided into several parts: in this case, equipment management services are paid separately from the lease. The rent may be charged for certain calendar periods of time, for example, days, months, or maybe for hours worked, for example, depending on the number of hours. The main thing is to clearly agree on how this time is calculated, who is responsible for downtime due to repairs or, for example, lack of crew or lack of physical ability to perform work.

One of the clearest examples is arbitration case No. A42-607/2014. The dispute arose over a contract for the charter of a floating crane. The lessee filed a claim for the recovery of the cost of towing the crane paid to the lessor - 6.5 million rubles, which the latter did not fulfill. The lessor, in turn, filed a counterclaim for the recovery of 122 million rubles of rent for the period of crane downtime caused by the closure of navigation. The main question is whether the tenant has to pay the rent, because At first, the ship could not be towed due to weather conditions, and then the shipowner decided to mothball the ship due to the approach of winter, navigation was closed and it was physically impossible to take out the crane. The case has been pending for more than three years, Supreme Court, returned for a new consideration, different instances decided in favor of the tenant, then in favor of the landlord. The courts have studied a huge amount of factual circumstances: correspondence, telegrams, ship's logs, the procedure for converting ships, orders of the harbor master and much, much more, but the final point in the dispute has not yet been set.

Of course, maritime disputes have their own nuances, however, this is not the essence of the problem. Most importantly, the rental agreement for special equipment with a crew has its own characteristics that seriously distinguish it from. It must be understood that this form of relationship has a specific structure for the distribution of risks associated with costs, repairs, downtime and crew management, and all these points must be taken into account. Firstly, to prescribe in the contract, and, secondly, and this is the most important thing, to clearly fix all the questions and problems that arise in correspondence. For example, the equipment is out of order - the notice of the lessor must be drawn up accordingly, for a start in the message Email, then - by official letter or telegram. Remember, conversations cannot be sewn to the point, and the consequences for the parties can be multimillion-dollar.