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ZUS for a sole trader in Poland


SeaDoggy 1 | 1
11 Apr 2020 #1
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!
cms neuf - | 1,737
11 Apr 2020 #2
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
OP SeaDoggy 1 | 1
11 Apr 2020 #3
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.
cms neuf - | 1,737
11 Apr 2020 #4
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.


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