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Magdalena Januszewska attorney-at-law

Running a business in Czechia does not exclude paying health insurance in Poland, if the entrepreneur conducts another business activity in the country.

This is the result of the decision of the National Health Fund of February 8, 2022 (10/2022/BP). From 20/01/2014, an entrepreneur is subject to social and health insurance for running a business in Poland only in the form of a civil partnership as a partner. However, from 12/05/2021, a business activity was started in Czechia – on his own behalf and for his own account. ZUS issued him with an A1 certificate confirming that he was subject to Polish legislation in the period from 12/05/2021 to 11/05/2022 as a self-employed person in two EU Member States. He asked whether from 12/05/2021 to 11/05/2022, in accordance with Art. 82 sec. 1 of the Health Act, he should pay two health insurance contributions.

Activities in two countries, contributions in one

The National Health Fund reminded that pursuant to Art. 11 sec. 1 of the Regulation of the Parliament and of the Council (EC) No. 883/2004 of 29/04/2004 on the coordination of social security systems (DzUrz UE L 166 of 30/04/2004), self-employed persons in more than one EU / EFTA country, are subject to the legislation of only one country, irrespective of the number of countries in which they simultaneously carry out a business activity. Such regulation is an exception to the principle of territoriality. It concerns being subject to legislation related to social security. The authorized institution, in this case Social Insurance Institution (Zakład Ubezpieczeń Społecznych, or ZUS), determined the applicable legislation and issued the A1 certificate, stating that the Polish law was subject to social security in the period from 12/05/2021 to 11/05/2022.

The result of establishing a legislation (A1 certificate) is that the entrepreneur is subject to social and health insurance and the obligation to pay contributions, also for activities performed in another country (Czech Republic), in accordance with the rules resulting from the law of the competent country, in this case Polish legislation. The provisions of Polish law will apply to economic activity carried out outside Poland in the field of social security matters, as if it were carried out in Poland.

Due to the significant changes in force from 01/01/2022, the situation is different before and after this date.

The period from 12/05/2021 to 31/12/2021

Art. 82 sec. 3 of the Health Act said that if the insured conducting non-agricultural activity obtained income from more than one of the types of activity specified in sec. 5, the health insurance was paid separately from each type of activity.

The entrepreneur, carrying out registered business activity in Poland as a partner in a civil partnership and conducting registered business activity in Czechia, conducted two types of activity within the meaning of Art. 82 sec. 5 of the Health Act, specified in point 1 (civil partnership) and 9 (registered business activity in Czechia). Therefore, in the period from 12/05/2021 to 31/12/2021, he was subject to compulsory health insurance for non-agricultural activities and the obligation to pay health insurance for both types of economic activity.

The period from 01/01/2022 to 11/05/2022.

From 01/01/2022, conducting non-agricultural activities is still a title to a compulsory health insurance. However, the provisions relating to the payment of health insurance contributions in the event of conflicting entitlements to health insurance have changed. To art. 82 a new paragraph was introduced. 2a, according to which if the insured (here: the entrepreneur) conducts more than one non-agricultural activity referred to in art. 81 sec. 2, the health insurance premium is paid on the basis of the sum of the income.

Thus, in the period from 01/01/2022 to 11/05/2022, as long as the regulations remain unchanged, the entrepreneur should pay the health insurance on the sum of income obtained from both activities – conducted in Poland and Czechia.