Step-by-step instruction for entrepreneurs for the most important changes in 2023
Polish Deal 3.0 introduces the minimum wage increase, no residential property depreciation and Social Security Contributions increase among many. These are only a few of the changes which are to be implemented in 2023. Below, you can find brief overview of the most important ones:
NEW SOCIAL SECURITY CONTRIBUTION LEVELS
2023 sees an increase in the Social Security Contributions for social insurance and Labour Fund
For Higher Social Security Contributions:
- pension contributions: PLN 812.23
- disability contributions: PLN 332.88
- accident contributions: PLN 69.49
- sickness contributions: PLN 101.94
- Labour Fund: PLN 101.94
TOTAL: PLN 1,418.48 + health insurance contributions subject to individual billing
Preferential Social Security Contribution until June 2023 and from July 2023.
- pension contributions: PLN 204.37 / PLN 210.82
- disability contributions: PLN 83.76 / PLN 86.40
- accident contributions: PLN 17.48 / PLN 18.04
- sickness contributions: £25.64 / £26.46
TOTAL: PLN 331.26 / PLN 341.72 + health insurance contributions subject to individual billing
HEALTH INSURANCE CONTRIBUTION LEVEL
In 2023, there is no change in the way the health insurance contribution is determined, i.e.:
- flat tax – 4.9% of income
- general rules – 9% of income
- tax card:
from the 1st month to the 6th month is PLN 314.10
from the 7th month to the 12th month is PLN 324.00
- cooperating persons – PLN 468.11
- lump sum – depending on income. At this point, the amount of the contribution is still unknown. It is projected to be around:
- I) revenue < PLN 60,000.00 – PLN 375.00
- II) revenue from PLN 60,000.00 to PLN 300,000.00 – PLN 625.00
III) revenue > PLN 300,000.00 – PLN 1,123.00.
HEALTH INSURANCE CONTRIBUTION DEDUCTION
Beginning with 1 July 2022, a deductible part of the paid health insurance contribution was introduced with the Polish Deal. From 2023, this is as follows:
- tax card
19% of the paid contribution is deductible from the tax card
- lump sum on registered income
50% of the paid contribution is deductible at the appropriate tax rate from income
- flat tax
PLN 10,200.00 – amount of the paid health insurance contributions to be deducted from income or booked as tax costs
- general principles
not subject to deductibility.
Starting with 1 January 2023, the record of business activities that are subject to taxation has been expanded. Business activities carried out in the form of a limited joint-stock partnership by a general partner have been included.
In 2023, minimum wages will be increased twice a year, i.e:
I) 1 January 2023.
II) 1 July 2023.
Salary levels from 1 January 2023:
- minimum wage (employment contract) – PLN 3,490.00 minimum
- hourly rate (contract for specified service) – PLN 22.80/hour
Salary levels from 1 July 2023:
- minimum wage (employment contract) – PLN 3,600.00
- minimum hourly rate (contract for specified service) – PLN 23.50/hour
NO RESIDENTIAL PROPERTY DEPRECIATION
From 1 January 2023, buildings and residential units are no longer depreciated. Investments in third-party buildings and residential units will also not be accounted for in tax costs.
On the basis of e.g., a notarial deed, a building permit, a construction project, an occupancy decision or an extract from the building register, it should be noted whether the property is used for residential or non-residential purposes.
Expenses related to the operation of residential properties and renovation costs will continue to be accounted for in tax costs.
ANNUAL RETURNS DEADLINES
In 2023, taxpayers have more time to submit their annual returns and the deadlines have been standardized. The submitting date for the annual return is 30 April. Due to the fact that 30 April 2023 falls on a Sunday, the deadline is moved to the next working day, i.e., 2 May 2023.
By 2 May 2023, the annual return shall be submitted by:
- taxpayers accounting for lump-sum tax on registered income – PIT-28
- taxpayers making general tax settlements – PIT-36
- taxpayers accounting for the flat tax – PIT 36L
By 28 February 2023, PIT-16A the annual return is submitted by taxpayers settling in the tax card form
PRIVATE RENTAL ON A LUMB SUM BASIS ONLY
Income earned from the rental, lease or sublease of non-business assets (i.e., so-called private rental) must be taxed as a lump sum beginning with 2023.
It also applies to the rental of private property e.g., houses, garages, apartments, as well as movable properties such as cars, trailers, vans. The tax rate is set at:
- 8,5% of revenue up to PLN 100,000.00
- 12,5% of revenue from the surplus over the amount of PLN 100,000.00
The PIT-2 is a form that is filed regarding the employment. Until the end of 2022, it was generally filed by employees. Starting with 2023 and onwards, the form also covers contractors and those performing specific work.
As of 1 January 2023, a new PIT-2 (9) form is in force. Statements submitted so far remain valid provided that the employee does not wish to submit an update.
The PIT-2 determines the net amount of remuneration. It is a statement that is the basis for the monthly settlement of the tax-reduced amount. It is set at:
30,000 PLN * 12% PIT = 3,600 PLN per year / 12 months = 300 PLN per month
- 300 PLN – 1/12th of the tax-free amount – PIT filed in one workplace
- 150 PLN – 1/24 of the tax-free amount – PIT filed in two workplaces
- PLN 100 – 1/36 of the tax-free amount – PIT filed in three workplaces
Please note: Employee have the right to submit the form at any time. A maximum of three PIT-2 statements may be submitted.
From 1 January 2023, every contributor is required to have an account on the Social Insurance Institution (also known as ZUS) Electronic Services Platform (PUE).
PUE ZUS allows to handle most matters relating to social security, health insurance or paying contributions electronically. PUE allows to have, among many other things:
- insight into the data collected by ZUS
- transmission of insurance documents,
- access to employee sick leaves,
- submitting applications to ZUS and obtaining a response,
- creation of electronic documents with data from ZUS,
- making appointments at ZUS offices.
Contribution payers had until 30 December 2022 to set up an account in person or authorise someone to access the role of payer on PUE ZUS.
Please note: If the payer of contributions has not set up a PUE ZUS account on their own by the indicated deadline, ZUS will do it automatically regardless.
For further information, please check here.
As a result of the amendment to the Polish Deal regulations, the middle-class relief has been stopped. For taxpayers who will be disadvantaged by the change, the head of the tax office will calculate a so-called notional tax and refund the difference.
For entrepreneurs, only those who owned non-agricultural business activity taxed on the tax scale in 2022 and whose annual income is between PLN 68,412.00 and PLN 133,692.00 will benefit from this change. In the 2022 tax return, depending on the individual situation, entrepreneurs will be able to benefit from reliefs as follows:
- Individual Pension Security Account,
- pro-family – for parents raising children,
- 4+ reductions for parents raising at least 4 children
- reductions for senior citizens – who, despite becoming entitled to a pension, temporarily give up their pension and remain professionally active,
- relief for landmarks,
- return allowances – for people who have decided to return from abroad and live in Poland.
HIGHER PER DIEMS RATE FOR BUSINESS TRAVEL
Beginning with 1 January 2023, the per diem rate to which employees are entitled for business travels has increased by PLN 7 and is now PLN 45.
From 2023, the remaining amounts will be:
- a lump sum to cover travel costs by local transport – PLN 9,
- a lump sum to which the employee is entitled if they have not been provided with free accommodation and have not submitted a bill in this respect – PLN 67.50 for each night,
- reimbursement of documented accommodation costs on the basis of receipts – up to PLN 900.
CHANGES TO PAYMENT LIMITS DEFERRED UNTIL 2024.
Reduced cash payment limits have been deferred for another year.
From 1 January 2024:
- in B2B transactions, the cash payment limit will be PLN 8,000
- in B2C transactions – the limit for cash payments will be PLN 20,000
In 2023, transactions between entrepreneurs can only be settled in cash up to an amount of PLN 15,000. Receipt of cash or payment in cash where the single transaction value (irrespective of the number of invoices) exceeds PLN 15,000 must be made exclusively through a company payment account.
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