Polish Deal – Changes in the Polish act on health care services financed from public funds

On November 15, 2021 the President signed into law the Act of 29 October 2021 amending the Personal Income Tax Act, the Corporate Income Tax Act and certain other acts (Polish Journal of Laws 2021, item 2105), which is part of the program known as the “Polish Deal” and introduces a number of changes in Polish tax regulations, most of which are to be effective from January 1, 2022 onwards. 

We present the most important changes in the Polish Act on health care services financed from public funds introduced by this Act:

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Change in the method of determining the basis for calculating health insurance contributions for entrepreneurs paying income tax according to the general rules and those subject to flat tax

After the changes, the basis for calculation of health insurance contributions for self-employed persons paying income tax according to the general rules and those subject to flat tax, will be the income income from business activity, reduced by the amount of contributions paid for pension, disability, sickness and accident insurance, if they were not included in the tax deductible expenses.

If the basis for the assessment of the health insurance contribution, determined in the manner described above, is lower than the amount of the minimum wage, the basis for the assessment of the health insurance contribution is the amount of the minimum wage.

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Change in the manner of determining the basis for the health insurance contribution for entrepreneurs paying income tax in the form of a lump sum on registered income

In the case of taxpayers covered by the lump-sum tax on registered income, the basis for calculating the health insurance contributions depends on the amount of their revenue.

For taxpayers whose revenues earned since the beginning of the calendar year does not exceed PLN 60,000, the basis for calculating health insurance contributions is an amount equivalent to 60% of the average monthly salary in the enterprise sector in the fourth quarter of the previous year.

For taxpayers whose revenues earned since the beginning of the calendar year exceeded the amount of PLN 60,000 and did not exceed the amount of PLN 300,000, the basis for calculating the health insurance contributions is the amount of the average monthly salary in the enterprise sector in the fourth quarter of the previous year.

For taxpayers whose revenues earned since the beginning of the calendar year exceeded the amount of PLN 300,000, the basis for calculating health insurance premiums is 180% of the average monthly salary in the enterprise sector in the fourth quarter of the previous year.

Revenues are reduced by the amounts of contributions paid for pension, disability, sickness and accident insurance, if they were not deducted as tax-deductible expenses or deducted from income.

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Change in the manner of determining the basis for assessment of health insurance contributions for entrepreneurs paying income tax in the form of tax card

The basis for the calculation of health insurance contributions for self-employed persons conducting non-agricultural business activity, who apply taxation in the form of tax card, is the amount of the minimum wage in force on January 1 of the given year.

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Change in health insurance contributions for businesses taxed on a flat tax

The health insurance contribution for self-employed taxpayers conducting non-agricultural business activity is 4.9% of the contribution assessment basis, but no less than the amount corresponding to 9% of the minimum wage applicable on January 1 of the contribution year.

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Coverage by obligation to pay health contributions of those persons who have been appointed to their function held by a resolution of their legal bodies, i.e. shareholders, and who by this entitlement receive a salary

As of January 1, 2022, the obligation to pay health contributions will apply to persons appointed to perform a function by an act of appointment, who receive a salary for this (e.g. members of management boards in companies), who until now did not have to pay health contributions from this emoluments.

The basis for the calculation of the health insurance contributions for these individuals will be the amount equivalent to the salary received for the appointment.

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