In an individual tax ruling dated 16 May 2023 (DI 200000/43/401/2023), the Social Insurance Institution (ZUS) concluded that permanent services rendered to the company by its shareholders over a certain period of time and to the extent consistent with the company's line of business, constitute obligations characteristic of a service contract (Article 750 of the Civil Code), rather than recurring non-cash performances provided to the company (Article 176 of the Commercial Company Code).

Consequently, remuneration paid for such services to shareholders will be subject to mandatory social insurance and health insurance under the rules applicable to mandate agreements. The obligation to pay the contributions will be on the company.

Find more in the PRO HR June 2023