Tax 

3-month Exemption for Businesses to Pay Insurance Premium

The government has prepared another measure, which consists of an exemption for small and medium-sized businesses to pay part of insurance premium. The exemption means a decrease in the assessment base of the employer’s social insurance in an amount not exceeding 1.5 multiple of the average wage, provided that certain conditions have been met. What is specific about this case is that this measure (unlike many previous ones) does not follow from the effects of the COVID-19 crisis.

Conditions to be met by employers are as follows:

  • The number of employees participating in the sickness insurance shall not exceed 50 on the last day of the month;
  • The number of employees on the last day is at least at 90% compared to 31 March 2020;
  • The sum of the employer’s assessment bases is at least 90% of the assessment bases for March 2020;
  • The employer has paid insurance for its employees; and
  • The employer has not received any support from the Antivirus programme.

The measure is effective for June, July and August 2020, with compliance with the above criteria being assessed for each month individually. The decrease can be requested by means of the Insurance Premium Overview form from the moment when the insurance premium is paid, and cannot be utilised retrospectively. Verification will be performed as part of regular checks by the Regional Social Security Administration.

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