Starting a business involves paying social security contributions (compulsory social security, medical insurance and labor fund). This applies to individual entrepreneurs in Poland. However, a novice entrepreneur can take advantage of preferential conditions to pay ZUS contributions and reduce taxes.
Pursuant to the Act on Entrepreneurs, Art. 18 "Benefits of starting": "An entrepreneur who is a natural person, starting a business for the first time or resuming it, at least 60 months from the date of the last suspension or termination of the contract and not performing it on behalf of a former employer for whom until the start of business in the current or in the previous calendar year under employment relations or cooperative employment relations falling within the scope of his entrepreneurial activity, he is not subject to the obligation to repay social insurance within six months from the date of commencing the activity." After the six-month period of benefits for start-up enterprises, the entrepreneur can still benefit from 2-year benefits for new companies, namely a 30% reduction in social security contributions.
In addition, a novice entrepreneur is not obliged to pay ZUS contributions to the Labor Fund, because the basis for calculating contributions for retirement and disability pension insurance is lower than the minimum wage.
It should also be remembered that from January 1, 2019, for taxpayers starting their own business they charge a new CIT rate (corporate income tax) of 9% (except for taxpayers listed in Article 19 (1a) of the Act and capital tax groups).
To sum up, it should be remembered that everyone who starts a business for the first time should read the information on the payment of ZUS contributions as soon as possible, because failure to submit ZUS reports entails certain consequences in the form of fines.