In November 2024, a new law will come into effect, offering small business owners in Poland the opportunity to take a month-long “contribution holiday” from paying ZUS contributions. This new provision, set to launch just in time for December, can bring financial relief for qualifying micro-entrepreneurs. Here’s a complete guide on who qualifies, how it works, and how to apply.
When Does the Law Take Effect?
The new law will take effect four months after its publication in the Journal of Laws, which means that eligible business owners can begin applying for their contribution holiday in November 2024, with the first holiday month being December 2024.
When and How Can You Use the Contribution Holiday?
Eligible entrepreneurs can enjoy the contribution holiday once each calendar year for a single month. During this month, they are exempt from paying their ZUS social contributions (including sickness insurance) up to the minimum contribution base for that year. However, this exemption does not cover health contributions, and contributions for any employees or collaborators must still be paid.
The savings for business owners will vary depending on their specific ZUS contribution arrangements. Additionally, while ZUS covers the contribution costs, business owners should note that most accounting services charge a small fee for managing the unique reporting requirements.
The state will fund these contributions as de minimis aid, meaning this exemption is a form of state aid and will be tax-exempt income.
Who Qualifies for the Contribution Holiday?
To qualify, business owners must meet these criteria:
- Be registered as micro-entrepreneurs in the CEiDG (Central Register and Information on Economic Activity).
- Have no more than nine people registered for social insurance in the month prior to application.
- Be registered for social insurance under the business activity they currently operate.
- Have earned up to €2 million in revenue in at least one of the two years preceding the application year.
- Have not worked for their former employer in the same capacity in the year before or during the application year.
- Have not exceeded their de minimis aid limit, which, as of January 2024, is €300,000 over three years.
How and When to Apply
Entrepreneurs can submit applications electronically via the PUE ZUS platform in the month before they wish to use the contribution holiday. Applications for December 2024 will be accepted in November, allowing business owners to skip contributions due in January 2025 (for December 2024). Similarly, applications for January 2025 can be submitted in December, covering contributions due in February 2025.
Each month requires a separate application, and the RWS application form, which should be available on PUE ZUS from November 1, 2024, must be filled out with the month for which the exemption is requested. Documentation proving de minimis aid status, such as a certificate of prior aid or a statement confirming no aid received, is also required. Importantly, even with the holiday, entrepreneurs must still submit monthly ZUS declarations.
Maximizing the Benefit
For a realistic understanding of the financial benefit, entrepreneurs should note that financed contributions will not reduce the income tax base or the health contribution base. Moreover, the financed contributions will be considered tax-exempt income and should not appear in the KPiR (Revenue and Expense Ledger), revenue records, or annual PIT declaration.
Important Details and Conditions
- De Minimis Aid: The contribution holiday counts toward the de minimis aid cap. Therefore, any upcoming applications should include past contribution holidays in the de minimis aid calculation.
- New EU Regulations: From January 1, 2024, new EU regulations govern the calculation of de minimis aid. Two key regulations now apply:
- Commission Regulation (EU) 2023/2831: Governs de minimis aid as per Articles 107 and 108 of the TFEU.
- Commission Regulation (EU) 2023/2832: Governs de minimis aid for enterprises performing services in the general economic interest.
- Separate Activities: When running multiple businesses with distinct legal structures, refer to the Council of Ministers regulation for detailed public aid calculation.
- Sequential Application: It's not possible to submit two applications at once (e.g., for December and January). Each month requires its own submission to avoid overlap.
For entrepreneurs seeking financial relief, these contribution holidays present a valuable opportunity. For detailed application guidance, the form is available through GOFIN, and ZUS’s online PUE platform offers full application support for easy, streamlined access to this valuable aid.
