Health tax on entrepreneurs lowered (or not). MPC: Has Glapiński just changed his view?

POLAND - In Brief 07 Apr 2025 by Jan Hagemejer

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News on the health tax After a lengthy disagreement amongst the coalition members (with the left opposing the law), the parliament has proposed a law to lower the health tax on the self-employed. Starting January 1, 2026, the new system will consist of flat-rate and percentage-based parts. The flat-rate part will be 9% of 75% of the minimum wage, while the percentage-based part will be calculated on the excess income or revenue above specified thresholds. For those using the progressive or flat tax scale, the percentage will be 4.9% of the excess income above 1.5 times the average monthly wage. For entrepreneurs on a lump-sum tax, it will be 3.5% of the excess revenue above three times the average wage. This is a significant lowering of the tax rate where the variable part was 9% of the excess income. PIS introduced the previous regime and significantly increased the effective tax rates on entrepreneurs – before that, health tax was deducted almost entirely from income taxes. These changes aim to reduce the fiscal burden on approximately 2.5 million companies, supporting their development and improving their financial situation. The Sejm has passed the bill and is awaiting approval by the Senate. If the Senate introduces amendments, the bill will return to the Sejm. Once the legislative process is completed and signed by the President, the law will come into effect. This, of course, is conditional on either Trzaskowski or Mentzen winning, while the PIS candidate will likely veto the law. This is an important breakthrough for the KO/PO leading party, as lowering the health tax was their important election promise in 2023 and the only one that, given the complexity of th...