Tax deductibility of employee social insurance contributions in 2023

 

The most important of them include, among other things, postponed effective date of minimum income tax, repealed provisions on so-called hidden dividends, and changes regarding transactions with tax havens. 

 

Changes will also affect the tax deductibility of contributions made to the Social Insurance Institution, the Labour Fund, the Guaranteed Employee Benefits Fund, and the Solidarity Fund.

 

 

Currently, contributions made to:

 

are tax deductible in the month for which such contributions are due, provided that they are paid:

 

The CIT Act says that if these deadlines are not met, the contributions are only deductible as of the date they are paid.

 

 

From 1 January 2023, said contributions will be tax deductible in the month for which they are due, provided that they are paid within the deadline set in separate regulations. 

 

Employers paying salaries for a given month will no longer have to exclude contributions from tax-deductible expenses in the following month. This significantly affects, among other things, the calculation of deferred tax. Or, these enterprises will not necessarily have to pay contributions before the statutory deadline in order to recognise the part of the contribution financed by them as a tax-deductible expense in the month for which the salaries are due.

 

If the deadlines are not met, said contributions will still be deductible in the month in which they are paid.

 

If you have any questions, please contact us.