Individual disability and accident insurance policies and the social insurance contribution deduction

Can premiums for additional disability insurance (Polish: „ubezpieczenie rentowe”) and accident insurance paid under individual policies be deducted from income as social insurance contributions? No. This is the answer given by the Ministry of Finance in its guide to deducting social insurance contributions for PIT purposes.

Why are premiums for an additional policy not eligible for this deduction?

The Ministry of Finance explains that premiums for additional disability and accident insurance paid under individual insurance policies are not contributions specified in the Act on the Social Insurance System. This is the reason this deduction is not allowed.

The distinction is therefore between contributions specified in that Act and premiums for the additional policies described above. These two categories should not be treated as equivalent merely because both use the terms “disability” and “accident”.

What does this guide not determine?

This guide concerns only the deduction from income, as social insurance contributions, of premiums for additional disability and accident insurance paid under individual policies. We do not extend the Ministry of Finance’s answer to all insurance products.

Nor do we assess any particular policy or whether the expenditure may be treated as a tax-deductible expense. We do not present the unavailability of this deduction as a determination of its treatment as a tax-deductible expense.

Optional document organisation

Before passing documents to your accountant, you can, for organisational purposes:

• check the type of policy in the documents;
• check the payment description;
• separate documents for the additional policy from documents relating to social insurance contributions.

This is an optional suggestion for organising documents, not an official requirement or a tax assessment of a particular policy.

Key takeaway

Premiums for additional disability and accident insurance paid under individual policies cannot be deducted from income as social insurance contributions: according to the Ministry of Finance, they are not contributions specified in the Act on the Social Insurance System.