Especially during the epidemic period, the phenomenon intensified when the employer employs an employee from another country allowing him to work from home. This phenomenon applies not only to large companies, but also micro-enterprises operating on the Polish-Czech borderland. Unfortunately, these companies often do not realize tax-insurance consequences.
every time when it comes to a situation that you can describe the border, so in which I have to deal with a difference about the permanent headquarters, workplace and whether the place of residence of the employee, it is worth investing with the contractual relationship in terms of the directive coordinating social security systems in EU.
In the case of employees with only one employment, the decisive factor is where the employee performs the tasks entrusted. If a Polish employee regularly commutes to the company's office or a workplace in the Czech Republic, his employer naturally discharges premiums in the Czech Republic.
Similarly, the situation looks in the opposite direction when the Czech employee works on the Polish side of the border.
The situation is complicated when the Polish company decides to employ employee in the Czech Republic as a sales representative on that market or to work in Home-Office mode. Such an employee is subject to all premiums and taxes under Czech regulations. In this situation, the employer registration in the Czech system as a foreign payer.
The Czech employer employing a person who will permanently perform his tasks in Poland will also have to progress the Czech employer.
business and business
The situation of people conducting business and at the same time employees is a little more complicated. The coordination regulations we mentioned at the beginning prohibit the payment of insurance premiums in two different countries.
If an employee actually employed in one country performs economic activity in another, he will pay off the premiums on the same terms as the entrepreneurs of the employment country, while at the same time taxes on his own company will escort where he operates. < / p>
NP The Polish entrepreneur employed in the Czech Republic will have to pay in the Czech Republic insurance premium in the amount of 21.35% in the Czech Republic from the income reached from the income. At the same time, no contributions will not pay any contributions in Poland. In the reverse situation, the Czech entrepreneur employed in Poland will disable an additional insurance premium.
Therefore, it is worth consulting your situation with a local accounting office or a branch of social security administration (ie where it is employed)
a specific exception to the above-mentioned principles is a delegation of an employee to work abroad. Here there may be several scenarios that assume - often divergent tax and insurance solutions.
The most common situation is when an employee, permanently working in one country, e.g. in Poland, is sent by the employer to another country, eg Czech. In this situation - three scenarios can occur depending on the delegation:
In the first - if the employee is sent for a period shorter than half a year. In this situation, the employer pays taxes and permanent insurance contributions in their employment country.
If the employee is sent for a period longer than half a year, but shorter than two years, the employee is still subject to insurance regulations of his country, but his salary is already taxable in the country to which he was sent.
If the employer sends his employee for a period longer than two years, or employs an employee with a view to immediate sending abroad, this employee is subject to all their obligations under the regulations of the country to which he was sent.
In case of any doubts, we invite you to take advantage of the opportunity to consult our office.