Memorandum of the Union of Entrepreneurs and Employers on alternative solutions for entrepreneurs in the Polish New Deal

Warsaw, 28^th July 2021

Memorandum of the Union of Entrepreneurs and Employers on alternative solutions for entrepreneurs in the Polish New Deal

The Union of Entrepreneurs and Employers postulates to resign from burdening entrepreneurs with the National Health Fund premium proportional to income or revenue, and to abandon the possibility of deducting the NHF premium from the personal income tax paid by entrepreneurs.

We propose that only three forms of running a business in the system be left in the system, all of which are simple from a tax point  of view:

1. a small one-person business activity (sole proprietorship) for those with revenues up to PLN 120 thousand annually;
2. flat tax on the current terms;
3. lump sum on revenues with revised tax rates.

Furthermore, we propose a gradual increase in the basis on which health insurance premiums are calculated and paid by entrepreneurs to the level of 90% of the average wage.

The following concepts may help supplement the budget revenues that were to come from the solutions described in the Polish New Deal:

1. a uniform VAT rate of 18.75% (for the least wealthy, we propose a compensating solution in the form of a social card);
2. a minimum CIT rate of 1% of the revenues generated in a given tax year.

See more: 28.07.2021 Memorandum of the Union of Entrepreneurs and Employers   on alternative solutions for entrepreneurs in the Polish New Deal