The state will help self-employed persons (OSVČ) who have to stay at home with a child or a disabled person during the quarantine. If they meet the set conditions, they will be eligible to receive a financial benefit from a special program approved by the government. The aid will be paid by the Ministry of Industry and Trade and will be requested through the Trade Licensing Office.
Who is entitled to the nursing benefit?
- A self-employed caring for a child/children under 13 who attend schools and other childcare facilities now closed due to coronavirus if no other person receives this subsidy or other compensatory allowance. The child/children must be under the age of 13 on the day of the subsidy application.
- A self-employed person caring for a dependent child/children up to 26 years of age who is dependent on the assistance of another person at least grade I (slight dependence) under the Social Services Act and who cannot attend a school closed due to coronavirus will also be eligible for support.
- Self-employed persons who care of a person(s) with a disability at least level I (slight dependence) according to the Social Services Act.
How to apply?
The applicant for the nursing benefit:
- must be the self-employed for the main activity at the time of submitting the application and for the entire period of drawing the subsidy of and must prove it by affidavit;
- must be registered as a tax payer with the tax office and prove it by affidavit;
- must be a small and medium-sized entrepreneur and prove it by affidavit;
- must not have any arrears to the Tax Office, the Czech Social Security Administration or the Health Insurance Company and prove it by affidavit.
The submission form can be found here: //osetrovne-osvc.plus4u.net/info/
The correct procedure is to fill in the form, check if any necessary fields (especially personal data, contacts and account number) is not missing, and then attach the attachment – confirmation of the closed kindergarten, school or other institution, which is sufficient even as an ordinary e-mail.
The confirmation of the closure of a school/children’s facility (kindergarten/school) or a facility that provides social services is a mandatory attachment, which does not have a standardized form. Any document, such as an e-mail or letter from the school or facility, confirming that they have been closed is sufficient. The Ministry of Industry and Trade points out that it is very important that this document also includes the name and surname of the child or other person cared for by the self-employed. It is also possible to use the CSSA form for employee nursing, just fill in part A. (//eportal.cssz.cz/web/portal/tiskopisy-zoppd)
How to submit the application for the nursing benefit?
- The fastest way is to send it via the data box wnswemb – for subject enter fpmpo20
- Send it by e-mail, the attachment of which will be a completed form with an electronic signature, including attachments to the address email@example.com – for subject enter fpmpo20
- Send original application signed by the applicant by post to the address: Ministry of Industry and Trade, Na Františku 32, 110 15 Prague 1, the envelope must be marked “fpmpo20“.
We recommend using a data box in particular. It can be used for all electronic communication with the public administration and greatly speeds up the application process. The application will be evaluated by the Ministry of Industry and Trade and the decision on whether or not the subsidy will be paid will be sent to the self-employed.
Further information can be found here: //www.mpo.cz/en/guidepost/for-the-media/press-releases/application-for-nursing-benefits-for-self-employed-persons-will-be-accepted-from-1-april-at-trade-licensing-offices–253739/
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?
The form is available on the Financial Administration website: //www.daneelektronicky.cz/cs/aktualni-informace-z-dp/2020/Zadost-Interaktivni-PDF-4687.
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.
As part of the so-called Liberation Tax Package I and II, the government approved reliefs in the area of filing tax returns and paying taxes.
All income taxpayers, who are generally required to file a tax return for corporate income tax, personal income tax and withholding tax settlement for the period of 2019 by 1 April 2020, are allowed to file it until 1 July 2020. The same extension applies to the payment of the tax surcharge (doplatek daně). This measure will relieve especially self-employed persons, small and medium-sized companies (without a mandatory audit of financial statements) and high-income employees who are obliged to file a tax return due to a solidarity tax.
At the same time, all taxpayers who pay quarterly or semi-annual income tax advances were generally waived the payment of the advance due in June this year. The June deposit (ie the second deposit for quarterly payers and the first deposit for half-yearly payers) will not be paid at all. The waiver of the deposit does not waive the tax itself.
Advances for pension and health insurance
Self-employed persons are exempted from the obligation to pay advances for pension insurance and health insurance for the period March-August 2020. Premiums for this period will not be settled until the premium overviews in the spring of next year. In addition, for the above-mentioned six months of 2020, the payment of social and health insurance will be reduced by the amount of insurance premiums from the minimum assessment base, which represents a total relief of up to almost CZK 30,000.
The exception does not apply to sickness insurance if the self-employed voluntarily participates in it.
Following the general relief in relation to the income tax return, self-employed persons will be able to submit premium reports for 2019 until 3 August 2020 without any penalties. It will also be possible to pay premium surcharges in this extended period without a penalty being charged.
VAT inspection report and return fines
If it is not possible to submit a VAT inspection report within the deadline, the fines for its late submission will be resolved as follows:
- Without a request from the tax administrator, fines for late submission of an audit report in the amount of CZK 1,000 incurred for the period from 1 March to 31 July 2020 will be automatically waived.
- Some additional fines for late control reporting during this period will be waived at the payer’s individual request for coronavirus related reasons.
If the VAT return is submitted late, the procedure will be as follows:
In addition to the waiver of fines for late-filed tax returns widely introduced for all tax subjects under the conditions mentioned above, there is an automatic waiver of fines for late tax claims also for taxpayers who were at least partially exempted from fines for failure to file a control report (10, 30, CZK 50,000) for reasons related to the spread of coronavirus. This is provided that this late tax return will be filed no later than the day on which the related late audit report was filed.
Real estate acquisition tax
A similar area relief was introduced in relation to real estate acquisition tax. Declarations for this tax, for which the three-month filing period expires between 31 March and 31 July 2020, will be possible to file without penalty and pay the related tax until 31 August 2020. In practice, this applies to transfer of the real estate to the real estate cadastre that was carried out in the period from 1 December 2019 to 30 April 2020.
Advances for road tax, which are legally due on 15 April 2020 and 15 July 2020, will again be possible to be paid without any penalties at the latest together with the third advance due on 15 October 2020.
The new law on the credit moratorium designed by the Ministry of Finance makes it possible to postpone the repayment of loans and mortgages at any bank and non-bank provider for up to half a year. Repayments can be postponed by ordinary consumers, self-employed persons and companies. Repayments will be deferred from the first day of the month following a notification to the creditor and a declaration that the reason for taking this step is due to the negative economic impact of the coronavirus pandemic. However, these reasons will not have to be proved and the creditor will not examine them.
What instalments can be postponed?
- Repayments can be deferred for consumer and business loans that were agreed and drawn before 26 March 2020;
- For mortgages, repayment can be deferred only for contracts concluded before 26 March, but they can still be drawn after this date.
The deferral under the statutory moratorium regime applies to loans and mortgages with any bank and non-bank provider. The option to defer repayments does not apply to credit cards, overdrafts and revolving loans, operating leases or loans in connection with capital market transactions. At the same time, repayments are not deferred for loans which were in arrears for more than 30 days as of March 26, 2020.
How long can the repayments be postponed?
The first payment will be deferred in the calendar month following the month in which the deferral will be announced. Therefore, if you announce the postponement of the instalment in April, your instalments will be postponed from May. If you announce the postponement in May, your payments will be postponed from June.
Repayments can be deferred either until the end of July 2020 or until the end of October 2020. The repayment period shall be adequately extended, principally by the period of the deferral. It is also necessary to take into account that the repayment schedule will also be extended by the amount of interest that will accrue during the grace period – this would be calculated by a bank or non-bank lender.
Interest during the deferral
During the deferral period, the debt will continue to bear interest under the contract. Companies will pay this interest continuously even during the deferral of the principal payment. On the contrary, the consumer and the self-employed will pay it later, only after the full principal has been repaid. In addition, the rise of the interest rate for consumers is limited. To date, the interest rate is capped at 9%. Interest accrued during the deferral of repayment will not affect the repayments – these will remain at the originally agreed amount, only the repayment period will be recalculated.
No fees or negative entry in the register
Postponement of instalments under the statutory moratorium regime is free of charge and will not lead to a negative entry in the debtors’ registers, so there is no need to worry that any further loan applications will be complicated due to a delay in the future.
Deferral of rent for business premises
Deferral of rent for business premises applies to the lease and sublease of premises if the purpose of the lease is the operation of a business or lease. During the protection period (according to the wording of the draft law until 31.12.2020), the landlord cannot unilaterally terminate the lease only because the tenant is in arrears with the payment of rent if the delay occurred at the relevant time (from 12.3.2020 to 30.6.2020) as a result of the emergency measures during the epidemic.
If the tenant does not pay all debts within the protection period, or if the tenant notifies the landlord that he/she will not pay the debts during the protection period, the landlord will be entitled to terminate the lease with a notice period of 5 days.
Within 15 days from the date of the first delay, the tenant is obligated to submit documents to the landlord proving that the delay is the result of a restriction resulting from emergency measures during the epidemic, which prevents or significantly complicates the operation of the tenant’s business.
Further information can be found here: //expat.praha.eu/deferral-of-rent-payments-for-entrepreneurs/
Deferral of rent for apartments
Deferral of rent for apartments applies to the lease and sublease of premises if the purpose of the lease is housing. During the protection period (according to the wording of the draft law until 31.12.2020), the landlord cannot unilaterally terminate the lease only because the tenant is in arrears with the payment of rent if the delay occurred at the relevant time (from 12.3.2020 to 30.6.2020) as a result of the emergency measures during the epidemic.
If the tenant does not pay all debts within the protection period, declares that he/she will not pay the debts, or if it becomes unquestionable that the tenant will not pay the debt, the landlord will be entitled to terminate the lease without notice.
In the accelerated regime, the government passed a special law with time-limited effects which suspends the obligation to register sales for entities falling into all phases of EET for the duration of the emergency and for the following three months from its termination.
In practice, this means that entrepreneurs in this period do not have to send sales data, issue EET receipts, or post an information notice about the obligation to record sales at the establishment.
Please note, however, that the obligation to issue a proof of purchase upon request under the Consumer Protection Act continues to apply.