If you're a sole proprietor and have low income, it's worth considering paying lower social security contributions under the "Small ZUS Plus" tax relief. This solution is aimed at entrepreneurs who run smaller businesses, and social security contributions are calculated based on income rather than a fixed, higher base.
Who can benefit from the relief?
The Small ZUS Plus relief is available to entrepreneurs who meet the following conditions:
- Revenues from operations in the previous year did not exceed PLN 120,000.
- They have been operating a business for at least 60 days in the previous year.
This is a relief that can significantly reduce your ZUS (Social Insurance Institution) burden if your business is not yet a large enterprise.
When will you not benefit from Mały ZUS Plus?
You will not benefit from the Small ZUS Plus relief if:
- you start a business – the relief does not apply to the first year of running it,
- during the last 60 months of running your business, you have used the Small ZUS Plus for a total of 36 months,
- you fulfill conditions for paying reduced social security contributions,
- in the previous calendar year you conducted non-agricultural business activity for less than 60 calendar days,
- in the previous calendar year you settled your taxes using a tax card and at the same time benefited from VAT exemption,
- you were also subject to social security or health insurance on account of other non-agricultural activities,
- you perform the same tasks as part of your business activity that you performed for your former or current employer as an employee in the current or previous calendar year.
You cannot benefit from the Small ZUS Plus if in the previous year you ran a business as:
- creator, artist,
- a person practicing a freelance profession,
- partner of the company,
- a person running a public or private school.
Therefore, before deciding to take advantage of the relief, it is worth checking whether your business meets all the required conditions.
What does the relief cover?
The relief only covers social security contributions, which means that you still pay health insurance contributions according to the general rules, i.e. in accordance with the applicable rates.
How long can you benefit from the relief?
You can use the Small ZUS Plus tax relief for a maximum of 36 months within the next 60 months of running your business. Once you've used up this limit, you'll return to standard contributions. However, after the required break, you can reapply for the relief if your financial situation allows.
How do I apply for a discount?
To benefit from the Small ZUS Plus benefit, you must register with ZUS. You can do so by:
- by January 31 of the given year, if you meet the conditions at the beginning of the year,
- or within 7 days of meeting the conditions if this happens during the year.
Remember that timely reporting is crucial to be able to take advantage of the relief.
If you want to find out whether you can benefit from the Mały ZUS Plus tax relief, what documents to submit and how to do it correctly, please contact our office.
