Will business owners in Poland be allowed to issue invoices during the so-called social insurance holidays?
As it can be concluded from the draft act on the amendment of the act on the social insurance and certain other acts adopted by the government on 19 March 2024 (submitted to the Sejm on 22 March 2024), entrepreneurs who pay insurance contributions for themselves and up to 9 other persons and who generate a yearly revenue of up to EUR 2 million will have the opportunity to obtain an exemption from the obligation to pay contributions for themselves in the case of the following types of insurance: pension, disability, accident and sickness insurance.
How to take advantage of the social insurance holidays?
The solution will be available to entrepreneurs who are registered in the Central Business Activity Registration and Information Office (CEIDG), regardless of the form of settlement of income tax (PIT, flat rate, fixed amount tax). Social insurance contributions are a voluntary solution – the entrepreneur will decide themselves whether and when they want to use it. Thanks to the said solution, a business owner of a company registered in CEIDG will have the opportunity to use an exemption from the payment obligation for social insurance, Labor Fund and Solidarity Fund in any one month in the year.
This regulation will not apply to persons who conduct business activity in favor of their previous employers.
The holidays refer to social insurance contributions of the entrepreneur that they pay for themselves only (i.e. not for people insured by them, such as collaborators or employees).
In the period of social insurance holidays, the business owner will not need to suspend their business activity. In other words, they will still be able to generate revenue and issue invoices when on social insurance holidays.
When will it be possible to use social insurance holidays?
In order to use the solution, the business owner will have to file an application to the Social Insurance Company in the month preceding the month they selected.
It will be possible to file the application only through the ICT system of the Social Insurance Company in form of an electronic document. If the application is submitted outside the indicated period or if the applicant dies before the consideration of their application, the application will not be considered. Relevant information will be then available in the ICT system.
Entrepreneurs must also remember about the obligation to file an income statement and personal monthly reports for the month of social insurance holidays. The applicable deadline will be the same as in the case of other entrepreneurs, namely up to the 20th day of the next month.
Effective Date
According to the plan, the opportunity to use this solution is said to become available in the last quarter of 2024. Everything will depend on the end date of the legislative process. The new regulations are scheduled to become effective on the 1st day of the month 4 months after the publication in the Polish Journal of Laws.
Author: Natalia Pietrasik, accountant at the MDDP Outsourcing office in Warsaw
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