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Ech... I have a problem concerning paying tax and ZUS


pudddddin 7 | 48  
11 Oct 2009 /  #1
Right, the problem is that I am confused. I know in Poland I can have one of 2 contracts while working. One where the employer pays tax and ZUS for you and the other when you register yourself as a 'business' and invoice the place you're working (in my case a school) for the amount of hours you've worked and pay the tax and ZUS yourself...

I know that the polish government has a incentive for your own business where you only pay 80% ZUS...

I have no idea how much tax I would pay or how to pay it...

Is it worth it to register as your own business?? I work quite a few hours for a English language teacher - about 35 a week... Also do you still have to pay ZUS when you aren't working? (eg. If you have a holiday)

Is there a difference between registering as your own business and being a self-employed worker (like freelance) like there is in the UK??

I'm really confused because in my new job they offered to pay me more if i sorted out the tax and ZUS myself, because it is less bother for them... but I don't know exactly what I should register as AND what I need to be able to do it (I have a NIP and PESL from my last job).

Help please??
delphiandomine 85 | 18,254  
12 Oct 2009 /  #2
I know that the polish government has a incentive for your own business where you only pay 80% ZUS...

30% for two years :P Or in real terms, about 350zl at the moment.

I have no idea how much tax I would pay or how to pay it...

Basically, 350zl a month to ZUS regardless, plus 18% of profits. Poland is still excellent for 'creative accounting' and so you can get away with a hell of a lot - but you definitely need someone to do the books for you.

At the end of the month, the accountant just tells you 'right, pay ZUS and pay whatever-zl to the taxman'. You can pay quarterly, but it's probably not worth the headache.

Is it worth it to register as your own business?? I work quite a few hours for a English language teacher - about 35 a week... Also do you still have to pay ZUS when you aren't working? (eg. If you have a holiday)

Hmm...it's a good question. You've got the freedom to do whatever the hell you want with your own business, but if you aren't working, you're still stuck paying 350zl a month (with the prospect of paying nearly 900zl a month in 2 years!) regardless of what you do. I suppose you could close the company down in the holidays, but I'm not sure if they would allow you to claim the reduced rate again if you re-opened.

Is there a difference between registering as your own business and being a self-employed worker (like freelance) like there is in the UK??

Don't quote me on this, Marta is the expert - but there should be nothing stopping you working under 'umowa o dzielo' where they pay you (and deduct tax) - but you have your own obligaton to sort out ZUS. As far as I understand it, if you go down this route - then as long as you have health care, there should be no reason to register your own business. These are effectively freelance contracts - but bear in mind that if you don't pay ZUS, you won't be able to claim anything from the Polish state.

I'm really confused because in my new job they offered to pay me more if i sorted out the tax and ZUS myself, because it is less bother for them... but I don't know exactly what I should register as AND what I need to be able to do it (I have a NIP and PESL from my last job).

Basically - go to the office we went to, register there. They'll tell you to come back in a few days, so you do that. Once you go back, you go to the Urząd Skarbowy and 'upgrade' your NIP to self employed status. Once you do that, you wait for the REGON to come through the post (Waiting for mine...), then go to ZUS and tell them that you want to start paying for their nice buildings.

Then, once your company starts (that you say on the documents ) - you basically have until the 10th of the following month to pay tax and ZUS due for the month of starting.

Basically - the best calculation you can make is - "Will I be paid 500zl or more a month extra by being self employed?". If not, don't bother - it's really not worth your while. It's definitely much easier just to let them sort it out.
nauczyciel  
4 Nov 2009 /  #4
i'd like to know your source for this ZUS discount. who is eligible for this?

My accountant investigated this and said its only 50% and its only for Polish citizens.
delphiandomine 85 | 18,254  
5 Nov 2009 /  #5
My accountant investigated this and said its only 50% and its only for Polish citizens.

The accountant is wrong - for a start, it would be unlawful to only offer the discount for Polish citizens as all EU citizens have to be treated equally.

As for source - pit.pl/zus_dla_nowo_zakladanych_firm_760.php

I'd suggest getting a new accountant sharpish - if they aren't familiar with the very well known ZUS discount, then their other abilities are questionable.
Harry  
5 Nov 2009 /  #6
My accountant investigated this and said its only 50% and its only for Polish citizens.

How strange to see you of all people hiring incompetent advisors.
nauczyciel  
6 Nov 2009 /  #7
it would be unlawful to only offer the discount for Polish citizens as all EU citizens have to be treated equally.

I'm not an EU citizen....so maybe the rules of the discount don't apply to me.

How strange to see you of all people hiring incompetent advisors.

so i guess everyone in "harry's world" is perfect and never makes any mistakes? Yourself included

you really are a negative person
delphiandomine 85 | 18,254  
6 Nov 2009 /  #8
I'm not an EU citizen....so maybe the rules of the discount don't apply to me.

As far as I can tell from the relevant legislation, the discount isn't restricted. All the literature I have on the subject makes no mention of a restriction - and I know quite a few Americans have taken advantage of the reduction, so it certainly shouldn't be a problem for you.

Poland tends to shape their laws to include anyone who has legal residence in Poland, as opposed to applying things for EU nationals.
Seanus 15 | 19,706  
6 Nov 2009 /  #9
I am Scottish and got the 30% rate for 2 years. I now have to pay the full whack of 840PLN per month. That's a major drain on the finances but paying only 330PLN for so long wasn't so bad.

An American here got exactly the same treatment as I did. It's simply the case that they encourage you to stick with the firm by offering a discount.
Harry  
6 Nov 2009 /  #10
I am Scottish and got the 30% rate for 2 years. I now have to pay the full whack of 840PLN per month. That's a major drain on the finances but paying only 330PLN for so long wasn't so bad.

Same here (apart from the being Scottish bit).

I know quite a few Americans have taken advantage of the reduction

Same here.

you really are a negative person

I'm sure you're really pleasant too, especially given how everybody you come into contact with gives you terrible advice or crap service. Perhaps they're trying to tell you something?
nauczyciel  
6 Nov 2009 /  #11
especially given how everybody you come into contact with

everybody?? like who?
Harry  
6 Nov 2009 /  #12
To name just a few:
Your accountant.
The dealer who sold you your car.
The Subaru garage in Szczecin.
The staff at Castorama.
The staff at Leroy Marlin.
The hotel you wanted to stay at in Warsaw.
The staff at Zabka.
Shall I go on?
nauczyciel  
7 Nov 2009 /  #13
wow harry.... i'm surprised that you love me so much and love wasting your time to remember every single one of my posts!! Are you married or a lonely old expat?

Next time i visit Warsaw, we should go on a date, and then you can get to know the real me. I'm sure you would like to get your hands on my body and explore my world.

Me thinks harry has a mancrush/bromance on me

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