[Poland] Small ZUS plus from 1 January 2020

The Government has adopted a bill reducing social security contributions for microfirms. 

Small ZUS plus will enter into force on January 1, 2020. The new solution will allow the smallest entrepreneurs to save on average several hundred zlotys per month.

Next year, the so-called Small ZUS plus (Mały ZUS plus) will be available to about 320,000 microenterprises whose annual revenue in 2019 will not exceed PLN 120,000 and monthly income will not exceed PLN 6,000. Social security contributions for these entities will be calculated proportionally to their income and may be lower by as much as 550 PLN per month.

The new solution is addressed both to companies currently using the Small ZUS and to entrepreneurs who have not been granted any relief so far. However, the changes in ZUS contributions in 2020 will not be applied to entities providing services for their former employers as well as entrepreneurs who in the previous year settled in the form of a tax card and at the same time benefited from the exemption from VAT on sales.

The intention to benefit from Small ZUS plus will have to be declared by the end of the first month of the regulation’s implementation. Obtaining the right to benefit from Small ZUS plus during the year will be the only exception from this rule. In that case the deadline to submit the required declaration will amount to 7 days.

The new lower contribution will be paid for maximum 3 years in the consecutive period of 5 years of conducting business operations, and the condition for obtaining it, apart from the income basis, will be the necessity to run business operations in the previous year for at least 60 days.

However, the order in which the reliefs in social security contributions are applied will not be changed: first tax relief for new start-up companies (“ulga na start”), then preferential contributions paid for 24 months, and only then Small ZUS plus.

See also: Changes in ZUS contributions in 2020

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