Compensation bonus for self-employed persons (Pětadvacítka)

The Ministry of Finance and the Financial Administration presented a program of direct support for self-employed persons economically affected by the spread of coronavirus. Self-employed persons who request it and declares meeting basic requirements will be eligible for the amount of the nominal amount of CZK 25 000.

What conditions must be met?

• An applicant is a self-employed person under the pension insurance law.
• Self-employment is the main activity. Self-employment may also be a secondary activity if the self-employed do not simultaneously work elsewhere as an employee.
• The self-employment was active on 12 March 2020. Alternatively, they may also be self-employed persons whose activities were interrupted at any time after 31 August 2019 (seasonal business).
• The self-employed person is obligated to declare that he/she could not perform the activity in whole or in part above the usual due to health threats related to the occurrence of coronavirus or government crisis measures (especially for reasons such as the need to close or restrict its operation, quarantine of the self-employed person or his / her employee, childcare, restriction of demand for products or services or restriction or termination of supplies or services necessary for the performance of activities).

The applicant shall prove the fulfilment of these conditions by an affidavit.

Who is entitled to the compensation bonus?

• Self-employed persons who perform their business activities as the main activity (according to the Pension Insurance Act)
• Self-employed persons who perform their business activity as a secondary activity, if they receive a disability or old-age pension; are on maternity or parental leave; take care of a disabled person; or are preparing for a future career (students)

The criteria for entitlement to the compensation bonus and the method of proving them were chosen as benevolently as possible so that it would be met by the vast majority of self-employed persons.

Amount of compensation bonus and bonus period

The bonus period is the period from March 12 to April 30, 2020. The amount of the compensation bonus is CZK 500 for each calendar day of the bonus period. The maximum amount that can be applied for in the Compensation Bonus program is CZK 25,000, which is the sum of the daily limit and the number of 50 days within a specified period. The resulting amount will depend on the number of days on which self-employment was carried out. However, the bonus cannot be paid for those calendar days for which the applicant received unemployment benefit.

*** The government, meeting together with the National Economic Council (NERV), has given the green light to the continuation of the Compensation Bonus program. Direct support will continue to be provided in the form of a compensatory bonus of CZK 500 per day, for an extended bonus period from 1 May to 8 June, which corresponds to the latest date for opening establishments according to the current government schedule for releasing business activities. Therefore, it will be possible to apply for an additional amount of CZK 19,500.

How to apply?

Applications will be received by e-mail, post, via data box or through the Electronic Submission for Financial Administration (EPO) application, filing rooms and collection boxes in front of tax authorities.

The form is available on the Financial Administration website: https://www.daneelektronicky.cz/cs/aktualni-informace-z-dp/2020/Zadost-Interaktivni-PDF-4687.