SOUL-FI Round B

SOUL-FI Round B

Round B - Service/Application Development
May 13 '15
Dear Nuno, I have some questions for you :
1) within the call guidelines the employees remuneration is included within the direct costs. I need to clarify the following:
Regarding the compensation for the work performed by the Applicants (i.e. the 2 owners of the newco):
a) Do their "salaries" have to be actually cashed in by the applicants and therefore billed and subject to income taxation?
Or
Dear Nuno, I have some questions for you :
1) within the call guidelines the employees remuneration is included within the direct costs. I need to clarify the following:
Regarding the compensation for the work performed by the Applicants (i.e. the 2 owners of the newco):
a) Do their "salaries" have to be actually cashed in by the applicants and therefore billed and subject to income taxation?
Or
b) Is it enough to include this remuneration as a recognition of the services and activies performed by the applicants, that does not have to be actually cashed in and therefore it will not be subject to income taxation?

I am asking this because of the 2 applicants will work on the project but will not actually pay themeselves, however the time spent to carry on the project by them has a value.

Also, it will give the opportunity to the 2 applicants to cofinance the 25% of the total budget through the work that they actually have to do rather than with with cash.
more
Nuno Varandas
Nuno Varandas May 25 2015
Hi Paola, in the case of owners that do not have a salary you may use the SME Owners hour rate (ec.europa.eu/research/participants/data/ref/fp7/89582/sme_owners_rates.xls) as reference.