Social Insurance Institution (ZUS) Owes Billions of PLN

Millions of entrepreneurs in Poland pay obligatory social insurance contribution to ZUS, or Social Insurance Institution, an authority that collects and manages funds that are used to finance healthcare, pensions and a range of social benefits. Billion of zlotys are deposited in the accounts of the authority every month. However, it is not always the taxpayer that owes money to ZUS. Surprisingly, it might be the other way round.

Not long ago, Social Insurance Institution sent out letters to taxpayers with their end-of-year balance statements. The document confirms all company payments made to the government body. As it turns out, there are numerous businesses that miscalculated their obligations towards ZUS and their balance statements for 2018 show overpayments. In case of one company, the amount exceeds 20 million PLN.

If a taxpayer discovers they might have paid ZUS too much, first of all they should verify this with the institution. The statements show balance as on the final day of December 2018, while entrepreneurs receive letter a few weeks later. If their records do indeed demonstrate an overpayment, they may claim the amount from ZUS by filing a suitable request. An appropriate amount will be transferred to the company’s bank account. However, if the amount is not very high, you may prefer to just do nothing. The overpayment will be simply set off against your liabilities. The decision on how to deal with the situation up to the business owner.

All in all, there are approximately 1,000,000 taxpayers in Poland whose records show overpayment in 2018. Social Insurance Institution encourages them to get in touch via Electronic Services Platform, a dedicated web service where they can view company data (e.g. the amount of paid contributions), submit documents or get in touch with ZUS advisers. Currently, the platform has over 2,500,000 registered users.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.