New business-friendly laws to come into force in new year - minister
Polish Development Minister Jadwiga Emilewicz said on Thursday that a new law would come into force from January which would limit payment bottlenecks, as well as a large part of the Friendly Law Package, aimed at easing the conducting of business.
In addition, from February 1, 'Small ZUS Plus' will also come into effect, lowering social insurance premiums for small entrepreneurs, and by June 1, the ministry will finish work on a pro-investment package, Emilewicz added.
"As every year at this time, we have good news for business," Emilewicz was quoted in a ministry press release as saying. "From January 1, a new law comes into force which will limit payment bottlenecks, as well as a large part of the Friendly Law Package, including the right to make mistakes for entrepreneurs just starting out and facilities for craftsmen, and in addition - from February 1 - Small ZUS Plus. And in the plans for the coming months we have further easing measures for Polish companies."
Ministry officials stated that the changes had been designed for entrepreneurs, who had been consulted in the process.
Emilewicz explained that the aim of the law limiting payment bottlenecks is to strengthen the position of creditors, including "especially improving the position of smaller companies." She added that currently, according to estimates, lack of timely payment affects between 80 and 90 percent of enterprises in Poland.
The minister said the new business model involved larger entities being in credit with their subcontractors rather than at the bank and that the law shortens payment times. "For administration, we have shortened the payment time to a maximum of 30 days from the day of delivering the invoice in commercial transactions in which the debtor is a public entity, with the exception of public medical entities," she said.
In addition, a payment deadline of 60 days will apply to transactions in which the creditor is a micro, small or medium-sized enterprise and the debtor a large enterprise (so-called asymmetric transactions). Interest will be payable on unpaid invoices.
Meanwhile, Small ZUS Plus "raises the income ceiling for entrepreneurs who will be able to benefit from reduced social security contributions, to PLN 120,000 (EUR 28,174) a year," Emilewicz explained. "Meanwhile, social security contributions will be calculated according to revenues, as long as those revenues do not exceed PLN 6,000 (EUR 1,408) per month."
She said that compared to the solutions in force since the start of this year, "we have extended the pool of entrepreneurs who will be able to benefit from this solution to about 300,000."
Those entitled to benefit from Small ZUS in the formula to date should declare a desire to make use of the relief by January 8, 2020. "Then, from February 1, they will be able to pay contributions within the framework of Small ZUS Plus, which will come into force on that day," Emilewicz said.