NEWS

11/09/2019

14:19

PM Morawiecki: Lower Taxes for Small Businesses, Slightly Higher for Large International Corporations

Michał Olech

- We have very good news for small and medium-sized entrepreneurs. First, it's the possibility of paying a lump-sum tax, which will be raised first fourfold, actually very quickly, and then we plan to raise it eightfold. This means going from the current threshold of 250,000 euros to one million, and soon to two million euros. This translates to less bureaucracy, fewer formalities, and much greater ease of settling and paying lump-sum taxes, which are very low: 2-3% for the agricultural sector, depending on the nature of the industry, and 8%, 8.5%, or more for other industries with high margins – stated Prime Minister Mateusz Morawiecki in Karczew.

- And second, very good news. We are also allocating approximately one billion Polish zlotys to reduce the burdens of ZUS (Social Insurance Institution) for micro and small companies. This will be achieved by allowing ZUS contributions for these small firms to be calculated not only on revenue, as is already the case today, but also on income up to a certain level. This will be calibrated so that the total relief, the amount of money not paid to the Family Support Fund (FUS), does not exceed one billion zlotys. This is how it is currently calibrated. Therefore, a relief for the small ones, and for all those medium and larger ones, I want to emphasize once again with all my might that this lump-sum ZUS, which is calculated based on 60% of the average wage, and all these individual rates, we are maintaining them as they are to date. This means around 1300 zlotys, which, incidentally, we have no control over; they have been indexed year after year for years in line with wage growth. So, we are raising the lump-sum tax initially fourfold, with fewer formalities, lower taxes, as the Ministry of Finance has calculated about one billion zlotys less in taxes here as well. Therefore, lower taxes for small businesses, and slightly higher for those international, large corporations, which previously – it must be said – did not pay taxes to the extent they should have. We are maintaining the lump-sum rate as it is now, but in turn, we are lowering this lump-sum for some of the smallest companies, for whom it was more difficult to utilize ZUS reliefs – emphasized the Prime Minister.

https://twitter.com/PremierRP/status/1171755977378607104


Michał Olech