Service Agreement — Key elements and tax treatment
A service agreement is a legal document defining the terms under which one party (provider) performs services for another (client) — including scope, price, deadlines and responsibilities.
Definition
A service agreement is a legal document defining the terms under which one party (provider) performs services for another (client) — including scope, price, deadlines and responsibilities.
Details
Key elements: parties (names, EDB), service scope and subject, price and payment method, execution deadline, termination, confidentiality. For freelancers: service contracts are subject to 10% personal tax + contributions. For B2B: invoice issued after service completion per the contract.
Example
Contract: DOOEL 'Code Plus' (provider) develops a web app for DOO 'Client' for 300,000 MKD + VAT, 60-day deadline, payment 50% advance + 50% on completion.