The government and the Senate have approved a new law on the compensation bonus which introduces two new bonus periods from November 22, 2021, to January 31, 2022. Self-employed persons and entrepreneurs with a drop in sales of at least 30% in this period will be able to apply for up to CZK 1,000 per day. The law will now be signed by the president.
“The continuation of the compensation bonus for entrepreneurs is a natural response to the negative development of the covid pandemic and related government measures, especially in the area of services, which mainly concern unvaccinated citizens. After consultations with business associations and chambers, the new law keeps the model of increased assistance of up to CZK 1,000 per day for self-employed persons and entrepreneurs, who can thus reach a total of CZK 71,000 in two set bonus periods. I am pleased that this model has found strong support across the political spectrum and that the Financial Administration will be able to start paying money to those affected as soon as possible,”says Finance Minister Alena Schillerová.
The first bonus period is specified from November 22 to December 31, 2021 (40 days); the second bonus period from January 1 to 31, 2022 (31 days). Further periods may be declared by the government according to the development of the pandemic situation, always for one calendar month by the end of 2022 at the latest.
Conditions of the new compensation bonus
Only those entrepreneurs who had an active trade license as of November 22 can receive the compensation bonus. The second option is for so-called seasonal entrepreneurs with a suspended trade license for a maximum of one year.
The well-known compensation bonus has currently undergone one significant change. To obtain it, it is no longer necessary to prove a decrease in sales by half – a decrease in sales of at least 30% will be sufficient.
To obtain the bonus, the business activity must be the main source of income for the applicant and the cause-and-effect relationship between the decrease in sales and the effect of the measures must be met. It is sufficient to prove that the decrease in sales was not clearly caused by another factor (e.g. the entrepreneur’s own non-activity, or the seasonal nature of their activity, when in the relevant period there is a regular slowdown and a decrease in sales).
How to calculate the bonus?
The renewed compensation bonus works with the terms of the comparison and compared periods. These two very similar words describe two different time periods that are crucial for calculating the total bonus:
The comparison period (“srovnávací období”) indicate any three consecutive calendar months in the relevant period from June to October 2021. To calculate the contribution, you then need to average your earnings for these months. An exception applies to seasonal businesses that cannot run during the summer – their comparison period is the last winter period before the outbreak of the pandemic (the period from November 1, 2019, to March 31, 2020).
For the compared period (“srovnávané období”), you take monthly earnings for the month you want to compensate. In the first phase, therefore, it will be earnings for December. The January sales will be used for the second bonus period.
Self-employed persons and partners at limited-liability companies (s.r.o.) can receive compensation of up to CZK 1,000 a day, part-timers working as DPČ or those in quarantine a maximum of CZK 500.
Special cases: partners at limited-liability companies (s.r.o.), part-timers and those in quarantine
In the case of partners at limited-liability companies (s.r.o.), only partners of companies in which there are a maximum of two partners can achieve the bonus. Exceptions are companies in which only members of one family operate.
If you were unable to work as a part-timer working on DPČ (dohoda o pracovní činnosti”) for reasons on the part of the employer, in order to be entitled to the bonus you had to work during the relevant period (ie from June to October 2021) for at least three months, participate in sickness insurance and at the same time you did not perform any other activity as a result of which you would participate in sickness insurance as an employee.
If you had to remain in quarantine or isolation, you are also entitled to the compensation bonus in case you participate in sickness insurance. If you do not participate in sickness insurance but can prove a decrease in income of at least 30 %, you will be entitled to a bonus of up to CZK 1000 a day.
The compensation bonus is not compatible with other business support programs with the exception of the Antivirus program.