Social security, costs and taxes in 2023

Social security, costs and taxes in 2023

The new year 2023 brings further changes in the tax and cost field for entrepreneurs. We outline the most important of these below.

• Increase in social security contributions

In 2023, the social security contributions of sole traders and non-preferred traders amount to PLN 1418.48 per month. The amount does not include the health contribution, which depends on the form of taxation chosen by the taxpayer.

• Increase of the minimum wage and hourly rate

As of 1 January, the minimum wage is PLN 3490. The minimum hourly rate for contractors has also increased. It currently stands at PLN 22.80. As of July 2023, the minimum wage will increase to PLN 3600 and the hourly rate to PLN 23.50.

• Form of taxation for the company

The New Year is a special one for entrepreneurs who are considering the form of taxation. At the moment, entrepreneurs can choose the method of tax settlement not only for the future, but also retroactively. The latter option applies to those who in 2022 used either the PIT flat tax or the lump sum. Until 2 May, they can settle last year according to the tax scale. Recall that the reduction of the rate in the first threshold of the scale (from 17% to 12%) did not take place until July 2022.

• Higher funding for business travel

As of 1 January 2023, the amount of funds to which employees on business travel are entitled increases by PLN 7. It now amounts to PLN 45. The lump sum to cover the costs of travel by local transport is now PLN 9, and the lump sum to which an employee who has not been provided with free accommodation and who has not submitted a bill to that effect is PLN 67.50 for each overnight stay. The documented cost of overnight accommodation will be reimbursed as evidenced by a bill up to PLN 900.