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Payment of overdue social and health insurance contributions – general advance tax ruling

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​by Anna Rucińska

13 June 2023


The Minister of Finance issued on 30 March 2023 a general advance tax ruling on the tax implications of payment of overdue social and health insurance contributions. 

What is the ruling about?


The ruling describes income tax implications for PIT payers and withholders, related to the payment of overdue social and health insurance contributions from the withholder's own funds, in the part which should have been financed from the income of the insured (taxpayer).

The ruling was issued because PIT withholders were not sure whether overdue social and health insurance contributions paid from the withholder's pocket, which should have been financed by the taxpayer, should be treated as the taxpayer's income within the meaning of the PIT Act. 

Opinion of the Minister of Finance


The Minister of Finance has shared the viewpoint presented so far by administrative courts. He has concluded that payment of the aforementioned overdue social and health insurance contributions does not trigger income on the part of the taxpayer. 

Quoting a well-established case law, he has stated that by paying the overdue contributions the withholder fulfils his statutory obligation which cannot be transferred to a taxpayer. Payment of those contributions at a later date cannot be considered a payment made for the insured because, according to separate regulations, they are not obliged to make the payment at all (it is the withholder who is obliged to account for these contributions). 

The expenses incurred by the withholder to pay the overdue contributions cannot be considered tax-deductible to the extent that they should be financed from the taxpayer's income. 


If you have any questions about the above advance tax ruling, you are welcome to contact us.

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