Contribution holidays for entrepreneurs are to enter into force on October 1, 2024. This is the result of the draft act, which was submitted for public consultations and consultations. Government estimates show that almost 2 million people will be able to benefit from the solution.
This is a draft act amending the Act on the social security system and certain other acts. The project is intended to introduce contribution holidays for entrepreneurs. The solutions were prepared by the Ministry of Development and Technology together with the Social Insurance Institution – we read in the ministry’s announcement.
The bill was sent for consultation and consultation on Tuesday. Opinions can be sent until February 6 this year.
Contribution holidays for entrepreneurs
As explained by the ministry, contribution holidays are a voluntary solution addressed to micro-entrepreneurs, including the self-employed, entered into the Central Registration and Information on Economic Activity (CEIDG).
“It will consist in the possibility of taking advantage of the exemption from the obligation to pay contributions to social security, the Labor Fund and the Solidarity Fund in one month of the year – the contributions will be financed from the state budget,” it was indicated. The project does not exempt entrepreneurs from the obligation to pay health insurance contributions.
The holidays are to apply to the entrepreneur’s social security contributions for himself, not for the persons insured by him, e.g. cooperators or his employees.
A micro-entrepreneur is an entrepreneur who – in at least one of the last two financial years – met all of the following conditions: he employed less than 10 employees on average per year and achieved an annual net turnover from the sale of goods, products and services and from financial operations not exceeding the PLN equivalent of PLN 2 million. euro or the total assets of its balance sheet prepared at the end of one of these years did not exceed the PLN equivalent of EUR 2 million.
Who will be able to benefit?
According to the assumptions, entrepreneurs will be able to take advantage of contribution holidays regardless of the form of income tax settlement (PIT, lump sum, tax card). Support will be provided in the mode de minimis aid.
“An entrepreneur who wants to take advantage of the contribution holidays will have to submit an application to ZUS in the month preceding the month of his choice. For example, if he wants November to be a month free from social security contributions, the application should be submitted to ZUS in October,” we read in the announcement.
The Ministry of Development pointed out that entrepreneurs should also remember about the obligation to submit a settlement declaration and personal monthly reports for the month of using contribution holidays. “The applicable deadline is the same as in the case of other entrepreneurs – by the 20th day of the following month,” it was noted.
According to the bill, the solution will not apply to people who carry out activities for their former employers. The Ministry of Energy and Technology explained that such a reservation is to be sought by the so-called “pushing” employees into self-employment.
Contribution holidays – from when?
The Ministry expects that the regulations will come into force on October 1, 2024“so that the first entrepreneurs will be able to use this solution in November this year.”
“We estimate that almost 2 million people will be able to use the solution. We want them to have this opportunity this year,” said Krzysztof Hetman, Minister of Development and Technology, quoted in the release.
The cost of the solution this year was estimated at approximately PLN 1.73 billion.
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