As of 1 November 2024, Polish entrepreneurs will have the chance to benefit from the long-awaited relief called "A vacation on contributions". The fresh rules will introduce the anticipation of applying for exemption from social safety contributions for the period chosen, with the aim of relieving the financial burden on individuals with single business activity and tiny companies with up to 9 employees. What does this change mean for entrepreneurs and how can it be used?
What are “Intribution Vacations”?
"Intribution holidays" is simply a fresh relief aimed at supporting tiny and medium-sized enterprises through temporary exemption from the work to pay social safety contributions. This relief is aimed mainly at individuals with a single business activity and tiny companies with up to 9 employees. In practice, this means choosing 1 period a year for which an entrepreneur can not pay social safety contributions.
Why usage the Relief?
The “Intribution Vacations” relief aims to support entrepreneurs during hard financial periods, as well as to encourage further business development. These are the key benefits of the fresh solution:
- Financial savings: Exemption from payment of contributions for the selected period will save a crucial amount, which may be peculiarly crucial in periods of lower gross or in the case of unexpected expenditure.
- Facilitation of financial planning: The anticipation to choose the period in which we will benefit from the relief gives entrepreneurs more flexibility in managing the company's finances.
- Development support: Saved funds can be utilized to invest in the improvement of the company, which can contribute to its growth and increased competitiveness in the market.
How to Make Conclusions?
In order to benefit from the vacation on Contributions, entrepreneurs must apply to the Social Insurance Institution (ZUS). Applications can be submitted from 1 November 2024. Here are the steps to be taken:
- System Registration: Entrepreneurs should registry with the ZUS strategy or log into their account if they already have one.
- Fulfilling the Conclusion: Fill in the application form for exemption from contributions, indicating the period for which we want to benefit from the relief.
- Message of the Proposal: The application can be sent electronically or made in individual in the nearest ZUS branch.
When do I apply?
Applications for "Intribution holidays" can be submitted from 1 November 2024 and the deadline for submitting applications will run throughout the year. However, it is worth remembering that the relief can be limited by regulations that may change, so it is worth following the current information on the ZUS website.
Practical Advice
- Finance planning: Plan precisely which period will be the best to benefit from the relief, taking into account seasonality and expected revenues of the company.
- Monitoring of Regulations: Check up-to-date information on the rules on the usage of relief and any changes in regulations.
“Intribution holidays” is an innovative solution which has the chance to importantly affect the financial situation of Polish entrepreneurs. Thanks to this relief, tiny companies and individuals with a single business will be able to save on social safety contributions, which can contribute to their improvement and financial stability. However, it is crucial to bear in head the timely submission of applications and the follow-up of any changes to the rules.
Continued here:
New Reliefs for Entrepreneurs in Poland: What will “Holidays for Contributions” bring?
