Facilitations for entrepreneurs
Do you run a business and think you have too many official duties? Do you have a problem with settlement of the dispute in the office? Or maybe you are wondering about starting your own business but you are afraid of complicated formalities and high social security contributions? New regulations for entrepreneurs will help you solve your problems. For example, they will allow you to settle official matters more easily, recover debt more quickly or erect a business building without unnecessary formalities. They will also make it easier for young entrepreneurs to set up a company.
Facilitations for entrepreneurs are introduced as part of the package of 100 Changes for Businesses and the planned Business Constitution - a set of laws that aim to fundamentally change the regulations concerning business activity.
#100 Changes for Companies
The 100 Changes for Companies of the Ministry of Development was announced in June 2016. Its aim is to abolish the most burdensome provisions hindering business. By autumn 2017, more than 100 changes had already come into force.
What is already working?
- Deregulatory law has been passed since 2017. It expanded, among others, the protection resulting from a dominant practice of interpretation in the area of individual interpretations of the law, generally for entrepreneurs (including those who did not apply for individual interpretation). Also, the net revenue threshold, at which the company has to keep full accounting, was raised from €1.2 million to €2 million. Annual savings for one entrepreneur amount to several thousand zloty.
- Facilitating the construction industry was introduced in April 2017. A state exam is no longer required to operate many construction machines. This represents 600,000 hours of savings for construction workers.
- A creditor package that facilitates debt recovery and, as prevention is better than cure, it will counteract payment bottlenecks. At the same time, the amendment to the Code of Administrative Proceedings entered into force. Thanks to it, the officials cannot play our ping-pong. They will handle them faster and in partnership, e. g. with the assistance of a mediator.
What is on the agenda?
- Amendments to the rules on time limits for the retention of staff records. It will be cheaper and simpler. Instead of 50 - 10 years of storage. Instead of a paper stack - an electronic form.
- Introduction of new regulations facilitating generational change in family businesses.
- Introduction of a new type of entity - a simple joint-stock company, which will be an ideal solution for young, innovative companies.
This is the biggest change in economic law that has taken place in recent years. The Business Constitution consists of a set of laws, which are primarily aimed at changing the relations between entrepreneurs and administration to a more partner-based one. The new regulations also plan to make it easier to set up a company and run a business. The most important document under the Business Constitution is the new Business Act. It introduces the following principles:
- what is not prohibited by law is allowed (entrepreneur may conduct business freely if he does not break specific prohibitions or restrictions);
- presumption of the entrepreneur's honesty (the entrepreneur does not have to prove his honesty, doubts about the circumstances of a particular case will be settled in favour of the entrepreneur);
- friendly interpretation of regulations (unclear regulations will be decided in favour of entrepreneurs);
- proportionality principle (office must not impose unjustified burdens on the entrepreneur, e.g. he will not be able to request the documents he already holds).
The simplifications introduced under the Business Constitution will include, among others:
- the possibility of conducting small business activity (monthly income up to 50% of the minimum salary) without the obligation of registration,
- exemption of new companies from the obligation to pay social security contributions for the first 6 months,
- gradual abolishing of the REGON number,
- appointing an Ombudsman for Small and Medium-sized Entrepreneurs,
- publication of legal clarifications for complex rules,
- the possibility of suspension of the company without time limit
- reorganisation of the catalogue of regulated activities (requiring licences, permits) and reduction of obligations for entrepreneurs,
- the possibility of handling simple official matters by phone or e-mail.
Act on robotisation
In August 2017 facilitations concerning depreciation of machinery and equipment came into force, thanks to which entrepreneurs can make one-off depreciation write-offs in the amount of up to PLN 100 thousand annually. Taxpayers conducting business activity may make one-off depreciation deductions from the initial value of new factory fixed assets included in groups 3-6 and 8 of the Fixed Assets Classification, i. e. machinery and equipment (apart from the possibility to deduct such deductions, property and means of transport remain). See the article about depreciation for more information.
Second Innovation Act
Since 2018 facilitatios witin the framework of the second Innovation Act will be applicable. Thanks to them, entrepreneurs will be able to deduct from the tax base 100 % of expenditure allocated to research and development. R&D expenditure.
The new act, among others:
- increases the tax relief for research and development to 100%. (and 150% for Research and Development Centres - CBR),
- clarifies and extends the catalogue of eligible costs for R&D relief (assets other than fixed assets, other than an employment contract, forms of employment. CBR will receive a wider range of costs, including real estate),
- enables access to R&D relief for some enterprises operating outside Special Economic Zones,
- extends until 2023 the exclusion of the so-called double taxation of capital companies and limited joint-stock partnerships engaged in R&D activity,
- simplifies the financing of start-ups: clarifies the way in which a loan converted into equity is taxed,