Shield 5.0: further exemptions from social security (ZUS) contributions for companies

Shield 5.0, signed by the President, entitles selected industries to apply for further exemptions from the obligation to pay social security contributions (ZUS). What period does the exemption cover and who exactly can benefit from it?

On 23 September 2020, a new act approved by the President, called the Industry Shield or Shield 5.0, was published in the Journal of Laws. It is addressed to companies from the travel industry and entities inseparably connected with it, e.g. hotels, tour guides, travel agents, organisers of fairs, exhibitions, congresses or artistic performances. Shield 5.0 aim is to provide support to entrepreneurs in a crisis situation caused by a coronavirus pandemic.

One of the elements of the support offered is the possibility of applying for the exemption from contributions for social security, health insurance, the Labour Fund, the Solidarity Fund, the Guaranteed Employee Benefits Fund or the Bridge Pension Fund due for July, August and September 2020.

Companies can apply for exemption from ZUS contributions starting from 15 October.

Shield 5.0 – which companies can benefit?

The exemption under the Shield 5.0 can be applied for by entrepreneurs who meet all of the following conditions:

• at the date of submitting the application, they conducted business operations under the codes of the Polish Classification of Activities (PKD): 49.39.Z, 55.10.Z, 77.39.Z, 79.11.A, 79.90.A, 82.30.Z, 90.01.Z, 90.02.Z, 93.29.A, 93.29.B, 93.29.Z,
• were declared ZUS remitters before 30 June 2020,
• the revenue from the aforementioned activities within the meaning of the tax regulations, obtained in the first calendar month for which the application for exemption from paying contributions is submitted, was lower by at least 75% in relation to the revenue obtained in the same calendar month in 2019.

The condition for obtaining the exemption is to submit an application for exemption from paying due social security contributions by 30 November 2020 and to submit settlement declarations and personal monthly reports for the months indicated in the application no later than 31 October 2020 (if required).

The exemption will also be available to entrepreneurs who have already paid social security contributions for the period indicated in the application.

Under the Shield 5.0, entrepreneurs from the travel industry can also apply for:

• downtime benefits (main activity – tourist agents and tour guides)
• additional downtime benefit (main activity – tourist transport, staging and performing in theatrical, opera, ballet and circus performances, running businesses such as riddle rooms, fear houses, discos, electronic game rooms, beaches, fairs).

Learn more: In 2021 the minimum pay will increase