"Suspension of business activity. How to do it?"


Conducting one's own business does not always bring the expected results. The effects of the pandemic are a problem affecting all entrepreneurs in this regard. The Polish legislator provides for the possibility of suspending the activity in such a situation, instead of completely liquidating it.

The loss of financial liquidity, as a consequence, makes it impossible to pay fixed costs directly related to conducting business activities - primarily contributions and taxes. No advance payments, flat rate or tax card are paid for the period of suspension. No ZUS or VAT declarations need to be submitted. Importantly, during the suspension of business activity, it cannot be conducted or generate current income. In the case of a sole proprietorship, suspension of activity may be one of the most financially advantageous solutions, taking into account the circumstances.

1. Who can suspend business activity?

Under Article 22 (2) of the Entrepreneurs' Law, a business activity can be suspended by an entrepreneur who does not employ employees, unless they are on maternity leave, maternity leave on maternity leave conditions, parental leave or maternity leave.

2. How long can business activity be suspended?

It is possible to suspend business activity for any reason and for any length of time, but not less than 30 days. The date of suspension coincides with the date of submission of the application to the Central Register and Information on Business Activity, but it is possible to indicate a date earlier or later than the submission of the application.

3. How to suspend business activity online?

Business activity can be suspended during a visit to the office, however, taking into account the current situation, it is worth taking advantage of the possibility of suspending business activity via the internet. The application for suspension of business activity should be submitted on the CEIDG-1 form to the Central Business Activity Register. To do this, you must register on the CEIDG website, using the Trusted Profile or qualified electronic signature to sign the application. A person who does not have a Trusted Profile can obtain it online, e.g. through a bank. The completed application will be automatically sent to ZUS, GUS and the tax office. To resume business later, it is enough to submit an application with information about the resumption, unless this information has already been indicated at the time of suspending the business activity.

4. Suspension of business activity and ZUS contributions

Based on the information provided by CEIDG, ZUS prepares the appropriate forms concerning the deregistration of the payer from contributions. As a rule, the entrepreneur who does not employ employees is not obliged to submit a settlement declaration or pay ZUS contributions - for the period of suspension of business activity.

5. Suspension of business activity and income tax

No advance payments are made for the period of suspension, settling business activity on general terms or at a flat rate of 19%. No VAT declaration is also required during the suspension period - for the settlement periods to which it applies. If the obligation to pay an advance payment for income tax or lump-sum income tax arises before the suspension period, the advance payment is due, even if the payment deadline falls during the period of suspension of business activity.

The article was prepared by the Law Office of Arkadiusz Jaskuła, which provides legal services for companies, also providing services for SOTE and our clients: www.adwokat-jaskula.pl

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