A trap for those conducting unregistered activities. Beware of changes
After the changes of July 1, 2023, new limits apply for unregistered activities, i.e. those that can be conducted without registration in the Central Registration and Information on Economic Activity (CEIDG). To avoid the need to register a business, monthly revenues cannot exceed 75%. minimum wage. However, in order to maintain the status of an unemployed person, it cannot be more than 50%.
Until June 30 this year, it was possible to run an unregistered business if the monthly income did not exceed 50%. minimum wage, i.e. PLN 1,745. From July 1, the minimum wage increased to PLN 3,600, and the regulations regarding unregistered activities also changed. Now the maximum revenue that can be achieved to avoid the need to register a company in CEIDG is 75%. minimum wage, i.e. PLN 2,700.
In addition to the income criterion, there are two more conditions for conducting unregistered business. The first is that no business activity has been conducted in the last 60 months. The second criterion states that unregistered activities cannot be conducted if the regulations require its establishment, for example when it is necessary to obtain licenses or permits. Unregistered activity is often used to test the company’s business potential, without the need to meet formal requirements and pay ZUS contributions.
Unregistered activity for the unemployed
– Unregistered activity can be conducted mainly on the basis of civil law contracts, such as a contract for specific work, a mandate contract or a harvest assistance contract. However, unemployed people who want to run a business without registration cannot do so on the basis of civil law contracts, because then they would lose their unemployed status. When deciding on this form of running a business, they usually have to choose a sales contract – says Piotr Juszczyk, Chief Tax Advisor at inFakt.
Changes in regulations in force from July 1 allow the unemployed to conduct unregistered activity if the income from it does not exceed 50%. minimum wage, not 75% as in the case of employed people. With the current minimum wage rate of PLN 3,600, unemployed people can earn PLN 1,800 without having to register their company in CEIDG.
Exceeding the 50 percent threshold. will result in the loss of the status of an unemployed person, as well as the status of an insured person, which will affect access to medical care. Unemployed people must therefore be careful not to exceed this limit.
