IC&Partners Poland S.A. - News 02-2022
Newsletter February 2022

IC&Partners Poland S.A. - Newsletter February 2022

Wage growth for companies with more than 9 employees

High inflation and difficulties in finding new employees have led to a record rise in wages. In December 2021, the average salary amounted to PLN 6,644.39 (gross), 11.2% higher than that paid at the end of 2020.

Given the shortage of workers on the market, employers are responding positively to requests for increases in employees.

The exhaustion of the resources available on the labor market and the further absences of workers due to illness, quarantine and isolation have made it necessary to seek resources, including among citizens of other countries.

Anti-Inflation Shield 2.0

The lowest VAT rates on fuel, autogas, heating and electricity, along with zero VAT on food, natural gas, fertilizers and other selected products used in agricultural production came into effect on February 1st, 2022 and will last for six months, i.e. until the end of July 2022. The law requires sellers to place a legible notice in the shop or gas station (at the checkout) that VAT rates have been reduced for these goods.

Changes in the regulations on employment of foreigners

The most important changes in the Act on Foreigners are aimed at simplifying the procedure for granting to foreigners temporary residence and work permits and temporary residence permits for the purpose of highly qualified employment (so-called Blue Card). The amendment provides for abandoning some of the requirements that have so far been necessary for granting the permit, including the requirement to have a documented place of residence and to have a source of stable and regular income. It is still a necessary condition for issuing a work permit that the contract with the foreigner must provide for remuneration not lower than the minimum wage. This condition must be met regardless of the work time and type of legal relationship constituting the basis for performance of work by a foreigner.

PIT consequences of paying the expenses for daily meals to an employee on business trip

In its ruling of January 14th, 2022, the Supreme Administrative Court, analyzing the case of a university's payment of food expenses to a traveling employee, stated that the full daily food provided to the employee during training is an expense incurred by the employer in the interest of the employee and therefore constitutes a benefit for the employee, since he does not have to incur any expenses for food or during the business trip. The full employer-funded daily meal that exceeds the statutory daily allowance limit should therefore constitute income for the employee, as it is a measurable, individual benefit attributable to a specific employee.


Longer reporting deadlines for 2021

On January 31st, 2022 the Ministry of Finance presented a draft regulation to extend the time for preparing financial statements for 2021. The draft regulation has been submitted for external and public consultation. 

The Ministry of Finance has also presented a proposal to extend the deadline for filing the CIT return. Taxpayers will have an additional 3 months to file the CIT return and pay the tax due. However, the Ministry of Finance has not yet published a draft regulation in this matter.

Remuneration of a Proxy without ZUS contributions and without PIT

Since 2022, the obligation to pay health insurance contributions has been extended to "persons appointed to perform functions by virtue of an appointment act who receive remuneration in this capacity". This obligation therefore applies to the members of the board of directors, the members of the audit committee and the examination committees. Initially, it seemed that the prosecutors were also covered by the obligation of the health contribution, but the experts who analyze the legislation found some legal gaps which show that the remuneration of a prosecutor can be without contributions and (up to 30,000 PLN per year) without PIT. Advances on the income tax PIT are not calculated and paid on the remuneration of the attorney. Instead, the attorney is required to file the tax return after the end of the year and can benefit from the tax-free amount, provided that he is not already benefiting from it under another title (e.g. employment contract, pension).

As regards the possibility of not paying the social security contribution, Article 83, paragraph 2, of the health law provides: "in the event that the payer does not calculate the advance for the PIT on the income which constitutes the basis for the assessment of the contribution, the contribution calculated for the individual months is reduced to 0 PLN ". The same Social Security Institute ZUS explains that the attorney pays the health care contribution only if his income is included in the source defined in article 13 point 7 of the PIT law, that is, if "the income received by people, regardless of their method of appointment, who are members of boards of directors, supervisory boards, commissions or other governing bodies of legal persons ".

The attorney is not a member of the board of directors, supervisory board, commission or other governing body of a legal person. So, according to the latest interpretation of the Social Insurance Institute, prosecutors are not covered by health insurance.


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