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Management contract as special social security title

The Supreme Court in its verdict issued on November 4th 2014 decided that in the event of pursuing economic activity which object includes management and coordination, the management contract should not be regarded as separate title which should be covered by social insurance. In other words, in such a situation the title which creates obligation of paying social insurance is only the economic activity.

According to the Supreme Court, this standpoint shall be valid even, if within the framework of economic activity the services are provided only to one person or entity, the remuneration received is at a fixed level, and the management contract was concluded for the specified period. In the opinion of the Supreme Court if services are provided in accordance with the abovementioned rules, the activity should be classified as the economic activity, therefore there is no reason to consider the management contract as the separate title which should be covered by social insurance.

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