The government “by the way” eliminates tax relief. Flat tax without the possibility of deducting the health premium
publication
2025-04-04 14:40
Changes in the health premium introduce the liquidation of the possibility of its deduction from income for people on a flat tax. In practice, this means that although the amount of the premium will decrease, entrepreneurs will no longer benefit from an earlier tax relief. In some situations, taxpayers will “come out to zero.” The expert explains why savings may prove to be smaller than at first.
In today's vote, the Sejm approved the changes in the health premium, which, at first glance, may seem revolutionary. The introduced change reduces the health contribution of entrepreneurs, but at the same time The possibility of deducting this contribution from income for people on a flat tax was liquidated.
A reduction that is not what it seems
– Until now, entrepreneurs could deduct PLN 11,600 annually. Multiplication at the tax rate (19%) we have PLN 2,204 “tax relief” on an annual basis. This means that thanks to this, the entrepreneur paid a year “real” unprotected PLN 11,600 a year, and PLN 9,596 (PLN 799/month). The effective amount of the premium was therefore not 4.9% but about 3.99% (PLN 799/20,000) – he explains Sebastian Bednarczyk, tax advisor, in the entry posted on LinkedIn.
The expert discusses real consequences on the example of an entrepreneur earning PLN 20,000 per month on a flat tax. He paid about PLN 11,800 (approx. PLN 980 per month) a year.
– After the changes voted today by the Sejm, the same entrepreneur will pay about PLN 8,640 (approx. PLN 720 per month) a year (…), except that from 2026 the entrepreneur will not deduct the health contribution paid. This means that saving of 3,000 a year is only fiction, and by eliminating the deduction mechanism it will “only” PLN 956 a year. Effectively the health premium rate will be 3.6% (PLN 720/20,000). The government has just lowered the health premium for entrepreneurs like the one in the example by 0.3% (earning PLN 20,000 per month, taxed with flat tax) – sums up a tax advisor.
