The Polski Ład has made changes to the health insurance premiums for entrepreneurs in 2022. Among them are the rates and conditions for deducting health insurance premiums in expenses depending on the form of taxation of the entrepreneur, the terms and conditions for submitting reporting forms, setting the minimum contribution, and others.

The payment of health insurance contributions is the basis of health insurance and makes it possible to apply for free medical services within the framework of the National Health Fund of the country. Health insurance contributions are the responsibility of the entrepreneur (there are exceptions for pensioners, people with disabilities, and those who are simultaneously employed under an employment contract).

From 2022, the criterion for determining the amount of the health insurance contribution and its deduction in expenses is the form of taxation of the entrepreneur.

1. Taxation of income according to the tax scale (skala podatkowa).

The health insurance contribution is 9% of income, calculated according to the rules below. The contribution cannot be lower than 9% of the minimum wage in a calendar year: PLN 270.90 (9% of PLN 3,010) in 2022. That is, if there is no income or a loss in the reporting month, the insurance premium is paid in this minimum amount.

The premium is paid for each month of insurance, depending on the amount of business income received in the month preceding the month for which the premium is paid.

First month income = Income – expenses (according to the Personal Income Tax Law) – social (pension, disability, sickness and accident) insurance contributions paid that month.

Income for subsequent months = Sum of income – Sum of expenses (received since the beginning of the year) – Sum of income for the previous month – Sum of social insurance contributions paid since the beginning of the year – Sum of social insurance contributions deducted in previous months.

When calculating income for the health insurance premium, the cost of inventory items is taken into account:

• an increase is made if the final > the initial inventory items,
• PLN 112.00 if the taxpayer is a single parent,
• reduction is made if the final < the initial inventory items.

In 2022, transitional provisions apply in this regard, according to which the entrepreneur can only take into account intermediate inventory, which reduces the basis for calculating the health insurance premium.

When calculating income, income that is not taxed on individuals is not taken into account, with the exception of:

• income received from activities in the special economic zone,
• income received from the sale of a new investment in accordance with the legislation on supporting new investments,
• income of taxpayers from an employment contract, agency contract or entrepreneurial activity, up to an amount not exceeding PLN 85,528 in a tax year, which:

– moved the place of residence to the territory of Poland,

– exercised parental responsibilities for at least four children,

– at the age of 60/65 years, provided that they do not receive an old-age or survivor's pension.

The law introduced the concept of "insurance year" from February 1 to January 31 of the calendar year. This is due to the fact that the contribution is determined based on the income for the previous month.

Example. The taxpayer in January-April 2022 received the following results of activities, in the table below (in PLN).*

* Example excluding social security contributions and inventory.

When starting a business in 2022, the income for the first month is determined in the amount of the minimum wage and the health insurance contribution is PLN 270.90.

The new rules do not give the right to deduct health insurance contributions from the income of persons who have chosen the general rules as a form of taxation; this is offset by a non-taxable amount of PLN 30,000 during the tax year in 2022 and a reduced rate of the first tax threshold.

2. Taxation of income by a linear (fixed) tax (podatek liniowej).

The rules for calculating the base of contributions for health insurance for persons applying a linear (fixed) tax are the same as for entrepreneurs who carry out calculations according to general rules. However, the rate will be 4.9% of the income received in the previous month.

At the same time, the minimum contribution cannot be less than 9% of the minimum wage in a given calendar year. That is, until the entrepreneur's income reaches approximately PLN 5,529, health insurance contributions must be paid in the amount of PLN 270.90. The amounts of income and health insurance contributions are shown in the table (in PLN).

Health insurance contributions when paying taxes in a line form can reduce income up to PLN 8,700.

Example. The taxpayer carries out activities taxed in a linear form, his income in 2022 amounted to PLN 190,000. Health insurance contributions amounted to PLN 9,310 (4.9% of income). The taxpayer's expense for calculating income tax will be the cost of health insurance contributions paid by him within the limit of PLN 8,700: PLN 181,300 = PLN 190,000 – PLN 8,700. The tax will be PLN 34,447 = 181,300 * 19%.

Contributions at a reduced health insurance rate (4.9% instead of 9%) can be applied by those taxpayers who pay tax on qualified intellectual property rights (IP-BOX) and who have chosen a linear tax as their main form of taxation, i.e. 19% of the tax bases.

3. Taxation of income according to a single (lump-sum) scale (ryczałt od przychodów ewidenchiowanych).

Taxpayers who have chosen a single (lump-sum) scale as a form of income taxation must pay health insurance contributions depending on the amount of income received in a given calendar year. In this case, the basis for calculating the health insurance premium is the corresponding percentage of the average monthly salary in the enterprise sector in the fourth quarter of the previous year. The interest rate depends on the amount of earned income. The premium itself is 9% of this base. The average monthly salary in the enterprise sector in the 4th quarter of 2021 was PLN 6,221.04, so the monthly insurance premiums in 2022 will be as follows (in PLN):

Health insurance contributions can reduce income from this form of tax calculation by up to 50% of paid health insurance contributions.

Example. The amount of the health insurance premium for annual income up to PLN 60,000 is PLN 335.94. The tax base for personal income tax is PLN 57,984.36 = PLN 60,000 – (12 months * 335.94) / 2.

It is important to take into account that the insurance premium for the year is calculated on the basis of the upper income at the end of the year. That is, if, for example, in the first months of the tax year the income is up to PLN 60,000, and by the end of the year – up to PLN 300,000, then the entrepreneur pays insurance premiums at the rate of 100% of the average monthly remuneration with an additional payment of up to PLN 559.89 from PLN 335.94.

4. Taxation of income from the tax card (karta podatkowa).

For an entrepreneur who makes payments on the basis of a tax card, the scheme for calculating the contribution to health insurance is quite simple – the amount of the minimum wage in force in a given calendar year is taken as a basis. In 2022, the minimum wage is PLN 3,010, i.e. the health insurance contribution is PLN 270.90 (PLN 3,010 × 9%). The premium calculated in this way is paid from January 2022.

Health insurance contributions in 2022 can reduce income from this form of taxation by 19% of the amount of paid health insurance contributions.

Example. The taxpayer conducts taxable activities in the form of a tax card. In 2022, the amount of tax payable was PLN 10,000 and, taking into account the paid health insurance contributions during the year, the taxable base for personal income tax is: 9,382.35 = 10,000 – (12 * 270.90) * 19%.

Other conditions for contributions for health insurance relate to the suspension of activities for entrepreneurs, calculation features depending on the organization / combination of types of business activities, payment terms, reporting forms.

Upon suspension of activities by an entrepreneur, income and expenses incurred during such a period are not taken into account for the purposes of calculating health insurance contributions.

The health insurance contributions of the company’s partners are calculated at the rate 9% based on 100% of the average salary in the enterprise sector from 2022, for example, partner in a limited partnership or a shareholder of a simple joint stock company.

Regardless of the remuneration or income received, the health insurance contribution is paid in the amount of PLN 559.89.

When carrying out several types of activity, the basis for the contribution to health insurance is determined from the amount of income related to this type of activity and in accordance with the applicable procedure for this form of taxation.

The deadline for payment and submission of reports on contributions to health insurance is before the 20th day of each month for taxpayers who are individuals and until the 15th day of each month for taxpayers who are legal entities.

The conditions and features of health insurance contributions for entrepreneurs in 2022 are presented in details in the sources here and here.