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From 1 November 2024, microbusiness owners can use a new right exempting them from paying social insurance contributions once a year. The change aims to support their finances. The first businesses can use it as early as December this year.
Upcoming legal changes: a contribution holiday for businesses
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Who can use it, and on what terms?
The contribution holiday is available to microbusiness owners registered in CEIDG who:
- In the calendar month preceding their application had no more than ten people registered for insurance, including themselves.
- In the two calendar years preceding the application year either received no revenue from non-agricultural business, or had annual revenue from such business in at least one of those years no greater than the zloty equivalent of EUR 2 million.
The owner may be exempt from contributions for one month each calendar year for:
- Their own social insurance: pension, disability, accident and, if previously declared, sickness insurance.
- The Labour Fund and Solidarity Fund.
Remember that the holiday covers the owner's own social insurance contributions, not those for people they insure, such as collaborators or employees. People carrying out business for former employers cannot use it.
How do you apply for the relief?
An owner wishing to use the contribution holiday must apply using the electronic form in their ZUS profile.Apply in the month before the chosen exemption month. For December to be contribution-free, for example, apply to ZUS in November.Businesses must also submit a settlement declaration and individual monthly reports for the holiday month. The deadline is the same as for other businesses: the twentieth day of the next month.
What should you remember?
This new support allows businesses to suspend social insurance contributions regardless of tax form (general, flat, lump sum or tax card).The state budget covers the minimum required contribution, which may mean a lower pension assessment base. The relief does not affect entitlement to sickness benefits or the size of future pension and disability benefits, but increases the tax base and may lead to higher tax. Those paying higher contributions for higher pension benefits may nevertheless face complications. We advise carefully analysing your situation, preparing documents and completing the application correctly to avoid problems.
If you found this article interesting, explore our tax advisory services and read how we can help you:
Summary
Introducing the contribution holiday is an important legal change intended to help business owners manage company finances. It temporarily suspends the duty to pay social insurance contributions and may improve liquidity. We encourage owners to read the new rules and use this support if needed. If in doubt about ZUS contributions, consult your accountant, who can clarify uncertainties and recommend the most advantageous settlement method.
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