Tax customs & excise /

Sale of real estate without a health premium – the government plans changes

As promised, the Polish government plans to reform the health contribution. As the law currently stands, the receipt of income from the sale of a fixed asset (in the case of the sale of real estate, cars, equipment, or company machinery) is subject to a mandatory health contribution. 

According to the revealed assumptions of the health premium reform, this may soon change.

 

What does the current legislation look like?

The current shape of the health premium is a result of regulations introduced by the Polish Deal. Currently, income from the sale of a fixed asset, such as:

  • company real estate,
  • equipment,
  • machinery,
  • cars,
  • or other means of transportation,

increases the basis for calculating the entrepreneur’s health contribution. 

Income from the disposal of assets is the difference between the revenue and the initial value shown in the fixed assets register, increased by the sum of depreciation write-offs on these assets.

Also, in the case of a loss, the entrepreneur is required to pay a minimum health contribution. However, according to the current position of the Social Security Administration, such loss can reduce the contribution assessment basis by this.

Taxability of income real estate.
As the government promises, the absurdity of charging health premiums on the sale of fixed assets is about to be consigned to history.

What is the minimum health contribution in 2024?

The minimum health contribution in 2024 is PLN 381.78 (for general taxation and flat tax).

The health contribution in the case of general rate taxation is 9% of the income earned in the previous month, and in the case of flat rate taxation – 4.9%. 

In a situation where the form of taxation is a lump sum on registered income, the rate of the health contribution depends on the amount of income earned and in 2024 is:

  • PLN 419.46 (in the case of income up to PLN 60,000),
  • PLN 699.11 (in the case of income up to PLN 300,000),
  • PLN 1,258.39 (in the case of income above PLN 300,000).

 

Find out how to calculate the health contribution with an example

An example of how to calculate the health premium on the sale of undeveloped land property:

  1. Acquisition of real estate in 2022 for PLN 500,000,
  2. In 2024, the fixed asset was sold for PLN 700,000,

The amount of health contribution when taxed according to the general rules:

(PLN 700,000 – PLN 500,000) x 9% = PLN 18,000.

The amount of health contribution when taxed on a flat rate tax:

(PLN 700,000 – PLN 500,000) x 4.9% = PLN 9,800.

 

The end of the health contribution to the sale of fixed assets?

As the government promises, the absurdity of charging a health premium on the sale of fixed assets is about to become history. Comprehensive reform of the health contribution for entrepreneurs is to take effect in January 2025. The changes are expected to simplify settlements for entrepreneurs regardless of the form of taxation adopted.

If you still have doubts about the amount or settlement of the health contribution to the sale of fixed assets, or other tax issues, be sure to contact our specialists.

We guarantee that within 24 hours you will receive an answer to your questions.

Write to us at: [email protected].

Author team leader DPG Tax
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Write an inquiry: [email protected]
check full info of team member: Anna Wilińska
Author team leader DKP Legal Ewa Lewicka
Contact our expert
Write an inquiry: [email protected]
check full info of team member: Ewa Lewicka
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