ZUS for a sole trader in Poland

I'm an 18 year old, interested in becoming a sole trader. I've been doing a lot of research about it, however, I can't quite seem to find the answer to how much ZUS I will have to pay.

On the 2019 version of "Doing Business In Poland" (Page 40) (pwc.pl/pl/pdf/doing-bussiness-in-poland-2019.pdf) I found some information about how much it might cost, however, I believe this document is mainly aimed at people starting an LLC.

If this information is accurate, would that mean that as a sole trader I'd have to pay ZUS as an employer and also as an employee? (Since I'm technically both)

That'd be a huge deal breaker, PIT (19% flat) + ZUS (42-44%).

I've also heard it might be possible to opt out of some parts of ZUS, like pension for example? I'm young, so I'm not too worried about that yet, I'd rather have more money that I could re-invest in my company.

Thanks in advance!

No it doesn't worl like that for sole traders - you pay a flat fee currently PLN 1354. For the first year it is a lower amount - can't remeber the exact amounts but around und 600 zloty.

It's not a great system - a high fixed cost even if your business is not doing well.

6krokow.pl/ile-wynosza-skladki-zus-dla-przedsiebiorcy-oraz-dla-nowych-firm/

If you read Polish this explains what is optional and what is compulsory

Wow, not very starter friendly... I'm honestly wondering whether I should still try to start here or just move it to another country. I know you can start a company in the UK and sit on it not doing anything and it wouldn't cost a penny, but now after the Brexit, that's become much more difficult...

What if I start an LLC instead? Would I be able to set my own salary to a penny or would I have to pay myself minimum wage? That way I could live off of dividends, which I assume don't require you to pay ZUS.

No, unless you are planning a big business it doesn't make sense. You need to make a profit before you can declare a dividend and in any case you would then up paying tax twice - the company would pay corporation tax and you would pay a tax on the dividend.

Apart from the ZUS situation a sole trader is much easier and simpler, there is not much admin and the tax rates are low compared to the rest of Europe.

Merged:

Sole trader – small volume (VAT and ZUS)

Hi everyone,

I'm new in Poland and have recently registered myself as a sole trader. I've been running a very small business for now, so, from what i understand, there's no need to register/pay VAT (up until 200,000). What I don't get, though, is whether issuing invoices is unnecessary. Does anyone now? Where I come from there is no such exemption, meaning that every transactions needs a corresponding VAT invoice which will be used at a later stage for income tax purposes, too.

Now the main question I haven't been able to get an answer so far (I always end up being redirected to PL content). Paying ZUS contributions is mandatory; for 6 months I only need to pay for the health bit. Fair enough, but how do I do that in practice? Is it automated/integrated onto the Biznes Gov website?

Thanks in advance.

The Zus should have sent to your business address a letter with your individual Zus account on it. You need to make a monthly transfer to that account. If you haven't got that letter then contact your local Zus office (you might need to take a Polish speaker with you, and get vaccinated before you go - its full of coughing old people).

If you missed a few months then its not a big deal - theoretically there is interest to pay, but if you send a lump sum of what you owe they probably wont bother you).

I don't know if there is any law saying you must issue invoices, but there is a law that you must keep some accounting records, so at the very least you need bank records.

Thank you very much for your answer! Just one question - how long should I wait for the ZUS correspondence? It's been a few days already.

Good question but might be several weeks - they have a huge backlog at the moment after the lockdowns

Merged:

ZUS for enterpreneurs who are also employed?

I'm planning to star a business and I'm also employed with "umowa o zlecenia" contract.
I've ready everything relevant on "biznes.gov.pl" site but couldn't find much information. Do I need to pay any ZUS (as it's already paid by my employer) or is there some sort of flat fee for it?

Hello,

I registered my sole trader firm in Dec 2023 and recently hired a local accountant; I received a communication that I must pay approximately 1900zł towards ZUS. Is this amount charged on a 6th-month basis for new business?