The crisis shield was introduced in March-May 2020 exemption from ZUS contributions for entrepreneurs. The question here is whether the advantage which the entrepreneur has achieved for the exemption from ZUS contributions constitutes revenue within the meaning of the PIT/CIT Act?
The answer to this question should be sought in Article 31zx Act on Special Solutions for Prevention, Prevention and Combating COVID-19, other infectious diseases and the resulting crisis situations, which provides that the income which an entrepreneur achieves under exemption from the Social Security Fund does not constitute income within the meaning of the provisions of the Personal Income Tax Act and the corporate income tax legislation. Subsequent changes to the crisis shield extended the exemption from ZUS to entrepreneurs who were reported as contributors:
- before day 1 February 2020 and for a day 29 February 2020;
- during the period 1 February 2020 to 29 February 2020 and for a day 31 March 2020,
- during the period 1 March 2020 to 31 March 2020 and for a day 30 April 2020
In addition, the crisis shield introduced a ZUS exemption of 50% Total amount of premiums due for the March-May period 2020 for entrepreneurs who have reported to social security from 10 to 49 insured. The economic rescue regulations also exempt ZUS for social cooperatives from contributions to ZUS for the period of March-May 2020 and expanded the catalogue of entrepreneurs carrying out economic activities and paying ZUS exclusively for themselves, exempt from payment of ZUS contributions from those who were only active before 1 February 2020, also on those who were active before 1 April 2020
In conclusion, entrepreneurs who benefit from the exemption from the payment of contributions to the Social Insurance Institution will not pay income tax.