4th deregulation act and easier business activity

Legal status as of July 25, 2014

The Council of Ministers adopted the 4th draft of the deregulation act. The changes are aimed at making it easier to run a business. The date of their planned entry into force is January 2015. Let's check what novelties await entrepreneurs from the new year, brought about by the deregulation act.

IV deregulation - no more checking personal reports at ZUS

Currently, an entrepreneur who is also a contribution payer has to check the correctness of the data provided to ZUS in monthly personal reports concerning the previous year by 30 April. The deregulation act plans to abolish this obligation and, consequently, also the penalty for failure to check the data by the payer, which currently amounts to PLN 5,000. zloty.

Facilitating business - medical certificates when changing jobs will remain valid

When hiring a new employee, it is obligatory to undergo a medical examination, which involves additional costs incurred by the entrepreneur - the employer. Research is necessary even if the employee already has one and performed the same duties in his previous job. The amendment aims to reduce the burden on the new employer, enabling him to hire an employee on the basis of a valid medical certificate issued during work for the previous employer. The condition is to hire an employee in a position similar to the current position.

4th deregulation act - no more GUS reports in the first year of operation

If a micro-entrepreneur establishing a business in a given year has been selected at random by the Central Statistical Office, then he is obliged to submit statistical information before he has time to put his company in order. Charging a newly-minted entrepreneur with such a task often causes him many difficulties and distracts him from key business obligations. Therefore, from 2015, it is planned that the Central Statistical Office will "give up" to novice entrepreneurs. This privilege will only apply to new companies.

Facilitating running a business - transport to work without income tax burden

Facilitations in running a business, to be introduced by the 4th deregulation act, will also apply to additional formalities. An employer who organizes the transport of employees to work by collective transport (bus or bus) will no longer be required to evaluate such a benefit, record the length and time of travel, and calculate and pay tax on this account. The provision of collective transport is to be exempt from taxation.

IV deregulation act - no more fees for VAT-R registration

Entrepreneurs starting their business activity must pay a registration fee of PLN 170 when submitting the VAT-R form to the tax office or through a single counter. From January 2015, such an obligation is to be abolished, which will reduce the costs of setting up a business.The fee will have to be paid only if the entrepreneur wants to obtain confirmation of the registration for VAT.

Facilitating running a business - private use of a company vehicle will be taxed at a flat rate

Settlement of income tax on the use of a company car for private purposes is to be determined by a lump sum, which is one of the simplest forms of taxation. The lump sum is to encourage entrepreneurs to honestly account in this regard.

IV deregulation act - no more difference in the moment of taxation of advance payments at the cash register

Pursuant to the changes, a taxpayer registering the receipt of an advance payment for future supplies of goods / performance of services, when determining the moment of tax liability arising from income tax, would be free to choose the form of settlement to be used. In order to simplify the records, he could decide to standardize the moment when the tax obligation arises with the accepted advances, which are recorded at the cash register. Then he would recognize them as income when he receives them - both for VAT and income tax purposes.

However, he would have to inform the office about the adopted solution within:

• until January 20 of the tax year;
• until the 20th day of the month following the month in which it started recording turnover through the cash register - applies to taxpayers who start registering sales at the cash register in a given tax year.

The 4th deregulation act is not limited to the above-mentioned changes. It introduces over 40 points of amendment to regulations in various areas of law related to running a business. The changes that are planned to enter into force on January 1, 2015 are a continuation of already started activities aimed at facilitating business operations.