As we step into 2024, it’s crucial to stay informed about the significant changes in Polish law. These modifications span across various aspects of legislation, impacting both individuals and businesses.
From the liquidation of perpetual usufruct for entrepreneurs to mandatory e-invoicing and adjustments in minimum salary, these changes are set to reshape the legal landscape. We delve into the most pivotal alterations to Polish law in 2024, offering insights into how they may affect you or your business.
Understanding these changes is vital for compliance and taking advantage of new opportunities in Poland’s evolving legal environment.
Changes in the Polish law in 2024: liquidation of perpetual usufruct for entrepreneurs
The Act allows those with perpetual usufruct on residential land to request its sale for ownership. It occurs in accordance with manner and terms specified in the new regulations. The procedure includes:
- Submitting an application within 12 months from the effective date of the regulation. This means by the 24th of August 2024.
- Concluding an agreement on transferring ownership of the land with the owner,
The sale price is 20 or 25 times the percentage rate of the perpetual usufruct fee. It depends on the fact who owned the land (local government unit or the State Treasury). The Act provides for specific exclusions and the possibility of obtaining a discount.
Changes in the Polish law in 2024: mandatory e-invoicing (KSeF)
The National e-Invoice System (KSeF) is an electronic platform for issuing and receiving structured invoices (in XML format). It is intended for entrepreneurs and introduces a unified settlement system. Invoices can be issued using commercial systems or free tools. The Ministry of Finance will provide them. Using the KSeF in the period from:
- 1 January 2022, to 30 June 2024 will be optional,
- From 1 July 2024 will be mandatory.
Changes in the Polish law in 2024: minimum salary
In 2024, two increases in the minimum salary are planned:
- From the 1st of January 2024 – 4242 PLN
- From the 1st of July 2024 – 4300 PLN
With the increase of the minimum salary in 2024, the minimum hourly rate for work will also increase. It will amount to:
- 27.70 PLN – From the 1st of January 2024
- 28.10 PLN – From the 1st of July 2024.
Changes in the Polish law in 2024: Portal of Housing Prices (Portal Cen Mieszkań)
The Portal of Housing Prices is to be a nationwide register of data on property prices in Poland. Information is to be continuously updated and available to everyone. This allows potential buyers to obtain reliable information about properties.
The draft Act introducing the Portal has been sent for consultation and has not yet been included in the agenda of the Sejm’s session. Therefore, there is no certainty about whether the Act will come into effect.
Changes in the Polish law in 2024: new franchise regulations
In 2024, the legislator will introduce several changes to franchise agreements. This serves to protect the position of the franchisee. Changes include:
- The so-called documentary form of the agreement,
- Information document containing key information about the agreement,
- Conditions for termination of the agreement by the franchisee and franchisor,
- The franchisee’s right to demand a proportionate reduction of the franchisor’s remuneration for a period in which his income has significantly decreased,
- Restrictions on the enforceability of contractual penalties and specifying the deadlines for their enforcement,
- Terms and framework of non-competition clauses,
- Right to establish a bill of exchange to secure claims from the franchise agreement,
- Obligation to keep confidential the know-how on which the franchise activity is based,
- Possibility of transferring rights and obligations from the franchise agreement,
- Right of termination by the franchisee of a fixed-term agreement.
Changes in the Polish law in 2024: mandatory e-delivery
Another change in the law will be eDelivery service. Its goal is to facilitate communication with public authorities Users will receive an individual, unchangeable address for electronic deliveries. Mandatory eDelivery will apply to:
- Entrepreneurs registered in the Central Register and Information on Economic Activity (CEIDG) and National Court Register (KRS),
- Non-public entities entered in the KRS, e.g., associations,
- All public entities and local government units.
Entrepreneurs disclosed in:
- the National Court Register (KRS) from 10 December 2023, at the time of registration, and
- in the Central Register and Information on Economic Activity (CEIDG) with an entry in the register until 1 January 2024,
will be able to submit an application for access to the e-inbox.
If entrepreneurs conducted business earlier, they will need to submit a separate application. This means that access must be active for entrepreneurs disclosed in:
- CEIDG until 30 December 2023 – until 30 September 2026,
- KRS before 10 December 2023 – until 10 March 2024.
Changes in the Polish law in 2024: Social Insurance contributions in 2024
The basis for calculating Social Insurance (ZUS) contributions for entrepreneurs is 60% of the average salary. With the increase in the minimum salary, the ZUS contribution for 2024, excluding health insurance, will increase by 181.79 PLN compared to 2023.
Percentage values for ZUS insurance contributions are:
- Pension contribution – 19.52% of the base,
- Disability contribution – 8.00% of the base,
- Sickness contribution – 2.45% of the base,
- Accident contribution – from 0.67 to 3.33% of the base.
From 2024, health insurance contributions will be settled on new terms. Its amount depends on the chosen form of taxation, i.e.:
- tax scale – 9% of the contribution assessment basis,
- Flat tax – 4.9% of the contribution assessment basis
- in the lump sum – it will depend on the earnings threshold. After exceeding in a given month, the basis for calculation in the next month is the following revenue threshold:
In 2024, the health insurance contribution will amount at least to 381.87 PLN per month.
Changes in the Polish law in 2024: small taxpayer in 2024
A small VAT taxpayer is an entity whose sales value, together with the tax amount, did not exceed the equivalent of 2 million euros in the previous tax year, expressed in PLN, converted at the average euro exchange rate announced by the NBP on the first working day of October of the previous tax year, rounded to the nearest thousand zlotys. On the 2nd of October, the exchange rate was 4.6091 PLN.
In 2024, a small VAT taxpayer will be an entity whose sales in 2023 did not exceed 9 218 000 PLN. The limit also applies to CIT and PIT taxpayers. The Act provides for certain exceptions. These include brokerage activities and the right to benefit from preferential, one-time depreciation.
Changes in the Polish law in 2024: lump sum rates in 2024
A lump sumi is tax on recorded revenues. It allows for lump sum payment of health insurance contributions. The tax rate depends on the type of business and ranges from 2 to 17%.
In 2024, the maximum amount allowing for the payment of tax on recorded revenues will be 9 218 200 PLN. If an entrepreneur’s revenues exceed this amount, he can opt for quarterly lump sum settlement.
Changes in the Polish law in 2024: a minimum tax
On the 1st of January 2024, a minimum tax will be introduced. It will apply to:
- Taxpayers with headquarters or management in Poland, subject to tax on their entire income, regardless of where it is earned,
- Tax capital groups,
- Taxpayers conducting business through a foreign establishment located in Poland
– who incurred a loss from operational activity for a given tax year or whose share of income in revenues did not exceed 2%.
The minimum tax aims to tighten the tax system. It intends to prevent Polish companies from recording income in countries with more favorable tax systems.
Changes in the Polish law in 2024: Summary
The legislator has prepared numerous changes in the law for 2024. Their goal is to help citizens and ensure a sense of security. It is worth familiarizing yourself with them now to be adequately prepared for the next year.
If you are interested in the tax and accounting in Poland related topics, we invite you to contact our accounting firm in Warsaw. Our accountants in Poland are at your disposal. Contact us today and let us help you!