From 1st of November 2024, entrepreneurs will be able to take advantage of contribution holidays which are a new type of relief from paying Social Security contributions. They will be exempt from paying social security contributions, as well as those for the Labor Fund and the Solidarity Fund. This is a voluntary exemption, so the entrepreneur can decide for himself whether he wants to use it. 

How does the contribution holiday work?

Entrepreneurs will have the option of not paying pension, disability and accident contributions, as well as contributions to the Labor Fund and the Solidarity Fund. The exemption from paying contributions also applies to sickness insurance in the month in which the entrepreneur has applied, as well as in the month preceding it. 

What are the conditions for taking contribution holiday?

The contribution vacation is for those who are running a business under the provisions of the Law from 6th of March 2018. In order to take full advantage of the described relief, the entrepreneur must meet certain conditions. 

First of all, the entrepreneur should submit the application to Social Security. The application is submitted in the month preceding the month to be covered by the relief. Another condition to benefit from the contribution is that the entrepreneur should have no more than 10 persons insured for pension, disability, accident or health insurance. The next condition needed to be met is that the entrepreneur applying for the contribution vacation should not have earned income from non-agricultural business activities, or in at least one of the 2 years has earned an annual income from non-agricultural business activities that did not exceed 2 million euros. A further requirement for the entrepreneur is that in the calendar year preceding the year in which he submits his application he has not performed non-agricultural business activities for a former employer. It is also important that in the period from the beginning of the calendar year of the application until the date of its final submission, the entrepreneur has not performed non-agricultural activities for a former employer. In the month preceding the filing of the application, the entrepreneur should, as an insured person, be subject to disability, old-age or accident insurance for non-agricultural business activity. 

It should be noted that the exemption from paying contributions for contribution holiday applies to one calendar month in each year chosen by the entrepreneur.  

Partners of general partnerships, limited partnerships and single-member limited liability companies are not eligible for contribution vacations. Partners of a civil partnership are eligible for the described entitlement, if they meet the established requirements. A partner of the specified partnership is registered in the CEIDG and is therefore treated in the same way as a sole proprietor in the Social Security insurance situation. 

The sources of such funding are:  

• Subsidies from the state budget to the Social Security Fund – in the case of social insurance,  

• Labor Fund revenues, including payments for Labor Fund contributions and budget subsidies, 

• Labor Fund revenues, including payments for mandatory contributions and solidarity tribute.

Social Security can check the annual business income information of those entrepreneurs who will apply for such relief.  What is worth mentioning is that entrepreneurs taking advantage of the contribution vacation will still be visible in the social security system. 

Application for exemption from payment of contributions   

In order to take advantage of the contribution vacation, you need to submit an appropriate application to Social Security. The application should be submitted electronically through the PUE profile. The application should be submitted in the calendar month that precedes the month covered by the contribution vacation. The application should include: 

– Data of the entrepreneur including:  

• His full name,  

• NIP, and PESEL number – if both or one of these is not available, then the ID card or passport number should be entered, 

–The selected calendar month in which the payer intends to use the contribution vacation,  

– Statements that, as of the date of application, the payer meets the conditions that:   

• In the last 2 calendar years preceding the year of application for the contribution vacation, did not earn income from non-agricultural business activities, or in at least one year of the 2 calendar years earned annual income from non-agricultural business activities that did not exceed 2 million euros, 

• As an insured person, in the calendar year preceding the year of submission of the application for contribution vacations and during the time between the beginning of the calendar year of submission of the application and its consideration, he did not perform non-agricultural economic activity for the benefit of a former employer for whom, in the calendar year of commencement of economic activity or in the previous calendar year, he performed within the framework of an employment or cooperative employment relationship activities falling within the scope of the economic activity performed; 

– Certificate of de minimis aid granted and de minimis aid in fishing or agriculture received by the taxpayer in the 3 years preceding the day on which he submitted the application, or a statement of the amount of aid received or not received in this respect,   

– Information necessary for the granting of de minimis aid that relates to the entrepreneur in question and his activities.

Text based on: https://www.inforlex.pl/dok/tresc,FOB0000000000006639820,Wakacje-skladkowe-dla-przedsiebiorcow-jak-skorzystac-ze-zwolnienia.html