Disinfo: Poland is not a comfortable country for entrepreneurs because of social contributions

Summary

Poland is not a comfortable country for entrepreneurs, as the Polish government has decided to increase the quantum of social security contributions levied on private businesses. This enormous increase in taxation will challenge the functioning of a significant number of local businesses, which will have to face the rising costs of labor.

 

 

Disproof

Recurring disinformation narrative about about economic problems and failure of market reforms in the countries of Central and Eastern Europe – see Poland-focused examples here and here.

Starting from 2020, the social security contributions paid by the Polish private enterprises will increase by 9.7%. The main reason for this increase is the growth of minimal and average salary in Poland (the size of social security contributions are determined by the average salary). According to the Polish Ministry of Finance, in 2019, the average salary in Poland is expected to increase by 7.6% and in 2020 - by 6%.

Poland continues to be one of the most attractive countries for private business, entrepreneurship and international investments, according to United Nations Conference on Trade and Development and E&Y reports.

It has seen uninterrupted economic growth since the early 90s with an average GDP growth of 4.2% a year. According to Doing Business 2019 Report, Poland occupies the 33rd place in the World on the easiness of doing business. The International Tax Competitiveness Index puts Poland in the top-35 list of countries with the most competitive taxation systems. In 2018, the number of individual businesses in Poland reached 3 million, a record for the country.

 

 

 

 

publication/media

  • Reported in: Issue 157
  • DATE OF PUBLICATION: 26/06/2019
  • Language/target audience: Polish
  • Country: Poland
  • Keywords: Economic difficulties
  • Outlet: Sputnik Polska
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