The draft amendment to the PIT Act as part of the New Deal program introduces changes to the amount of health insurance premiums paid by entrepreneurs. The draft assumes that the basis for the amount of this levy will be the entrepreneur’s actual income instead of a fixed lump sum. Contribution amount – 9 percent from the basis of the dimension will remain unchanged. For all entrepreneurs, this means an increase in the obligatory amounts paid to the National Health Fund for two reasons. First of all – as with all other taxpayers, due to the elimination of the possibility of deducting a significant part of the obligatory contribution (7.75%) from the tax. Secondly – due to the change in the method of determining the basis for the assessment of this contribution. For some groups: a flat tax or a tax card, it may mean that from 2022 they will pay a contribution twice as high as today.
The draft tax changes under the New Deal program, which has just been consulted by the end of August, foresees a real revolution in the rules of paying health insurance contributions, and its effects, in particular, apply to entrepreneurs paying PIT.
By determining that the basis for the assessment is the actual income, the general rule will unify the amount of the health insurance contribution and the method of its calculation.
“Both employees and entrepreneurs will pay it at the 9% rate, which will make it less beneficial for employees to be pushed to junk contracts and offered them civil law contracts,” wrote the explanatory memorandum to the draft.
Actual income: PIT on general terms
The draft assumes that the basis for the assessment will be the actual income obtained from the conducted activity in place of the fixed lump sum.
Income will be the basis for the contribution dimensions for:
- persons paying income tax on the terms specified according to the tax scale (Article 27 of the PIT Act),
- according to the 19% tax rate (Article 30c of the PIT Act)
- and paying income tax from qualified intellectual property rights (Article 30ca of the PIT Act).
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