Information concerning the occurrence of COVID-19 disease

Last update March 31st, 2020, 11:00 p.m.

ČEŠTINA/ENGLISH

Outputs of the Government meeting on March 30th, 2020, impacting the business community:

  • The Government answered our demand for an across the board postponement of the road tax advance payments. In practice, this means all the business people will be allowed to pay the advances with a due date in July up to October 15th, 2020. When it comes to those postponed advances, all the default and deferment interests will be remitted.
  • The Government wants to enable the postponement of rents for the business people whose business activities were thwarted by its decree against the COVID-19 spread. A legal norm is to enable that rent postponement of the duration of up to 6 months. The rent could afterwards be distributed within 24 months. The preparation of this Act was assigned to the Minister of Industry and Trade of the Czech Republic, Mr. Karel Havlíček, together with the Minister of Justice of the Czech Republic, Ms. Marie Benešová.
  • The Minister of Transport of the Czech Republic, Mr. Karel Havlíček, also informed of the intent to postpone the toll collection for lorries on motorways and class I roads. Currently, this postponement could be of 3 months duration. The technical details, however, are not yet known – CCC will ascertain those for you.

Outputs of the Government meeting on March 31st, 2020, impacting the business community:

  • The Government approved the Law draft which is to, via a one-time compensational bonus, mitigate the impacts of events related to the coronavirus on the self-employed whose business activities were reduced as a consequence of those events. The compensational bonus will be of the amount of 25.000 Czech crowns for the period from March 12th to April 30th, 2020. More information is to be found here (in Czech only).
  • The Government changed the Targeted Program of Employment Support “Antivirus” adjusting the State reimbursement to employers paying the wage compensations to the employees experiencing obstacles at work with regards to the coronavirus while it also specified the principles of administration of this contribution which will be disbursed by the Labour Office. The program is divided into 2 regimes. One of those regimes concerns the obstacles which arise from the medical or Government authority decision and are, therefore, beyond the employer’s own control, the second regime then relates to the situations arising from the employer’s own decision. A contribution of 80% of the employers’ expenses linked to the wage compensations, 39.000 Czech crowns at maximum, will be paid in the framework of the first regime while in the framework of the second one the contribution is to be of 60% of the super-gross wage. Simultaneously, the Government announced that in the coming days it will introduce yet a third special regime of compensations for the continuous operations.

The particular parameters for the business people support which were after the meeting of March 31st, 2020, introduced by the Government do in many aspects reflect the demands of the business people and the Czech Chamber of Commerce. The companies will thus, among other, have, at last, at their disposal the final wording of the Antivirus program which the Ministry of Labour and Social Affairs rearranged to two main regimes. We are pleased that after 14 days of business people impatient waiting for details regarding the kurzarbeit, the Government finally issued a clear statement and, therefore, the companies can at least prepare general financial plans for the following weeks and months. More is available in the comment of the President of the Czech Chamber of Commerce, Mr. Vladimír Dlouhý here (in Czech only).

In reaction to the methodology of the Antivirus program approved on March 31st, 2020, CCC quickly prepared a summary of practical information “Antivirus – employment support: How and where to apply, who will be eligible for the support” here (currently in Czech only).

  • The Government approved a package of amendments in the scope of the Ministry of Justice of the Czech Republic authority. The proposal contains a moratorium starting from August 31st, 2020, for the submissions of the insolvency motions for the companies experiencing difficulties in consequence of the epidemic. Not even the business people experiencing temporary difficulties would have to submit an insolvency motion for themselves. The procedures of reorganisation will be relaxed. The missed deadlines within the judicial proceedings will be pardoned. The remote decisions of companies’ statutory bodies using Internet or other technical equipment will be possible even in the cases that are not currently adjusted in the effective statutes.
  • We will keep monitoring the particular Government steps and will inform you of the possibilities of making use of them.

We would like to remind you of the starting date of the applications admission for the COVID II program by CMZR Bank which was set for April 2nd, 2020. Considering the low allocation of funds and the expected big demand, we recommend you to carefully read all the particulars in advance to be able to afterwards quickly submit your application. In this context, we have prepared a summarizing information which is to help you in this situation (currently in Czech only).

The Czech Chamber of Commerce actively offers employers’ cooperation in the framework of the state-wide project Save jobs! The aim of this project is to lower the risk of laying off employees as much as possible. Therefore, CCC offers a possibility to share labour capacities according to the §43a of the Labour Code by an assignment of the employees to another employer. First employers’ demands and offers will start to be received by the dispatchers on March 31st, 2020, on a line +420 800 222 121 free of charge. Detail information regarding this project of the Czech Chamber of Commerce are available on a dedicated webpage or in this press release (in Czech only).

The Czech Chamber of Commerce also comes with a new activity helping the business community in the times we all face a completely unusual situation which already has and in the future yet will have a big impact on the economy of the Czech Republic and of our trade partners. Apart from the crucial State support it is also necessary to keep a transparent business environment that will lower the danger of a secondary insolvency. In this context, the Czech Chamber of Commerce does in cooperation with the company CRIF – Czech Credit Bureau offer an application called Cribis which makes it possible to monitor the economic situation of all your customers and other business partners, free of charge for the duration of 2 months. This customer portfolio monitoring is focused on both legal and natural persons – business people registered on the territory of the Czech Republic and Slovakia. More information is to be found here (in Czech only).

On March 31st, 2020, we have published on the website of the Czech Chamber of Commerce a press release of the Automotive Industry Association in which you can find a comment on the Antivirus program launch (in Czech only).

As a reminder, we would like to inform you that the Deník is still processing the stories of the tradesmen who were affected by the current crisis. It also works together with the Czech Chamber of Commerce on answering your questions – more is to be read here (in Czech only).

In cooperation with the company Wolters Kluwer CCC did, in the framework of the Exemplary Law service, make available the chosen model examples of contracts and of other legal documents. All of this exclusively and free of charge for the members of the Czech Chamber of Commerce. More information is to be found in this letter (in Czech only). This service is, starting from March 31st, 2020, available via the Law Electronic System pespropodnikatele.cz or directly on the webpage www.vzornepravo.cz/hkcr.

For all of you who consider, with regards to the current situation, a trade licence interruption, we have gathered all the necessary information for such a step on the website dedicated to the Law Electronic System – more to be found here (currently in Czech only).

Considering the quantity of posed questions concerning the certificate of the force majeure intervention, CCC publishes up-to-date information here (currently in Czech only). Thanks to this certificate employers can relieve themselves e.g. from the obligation to pay damages in cases when an unpredictable and insurmountable obstacle will be proven by a presented contract documentation.

The Czech Chamber of Commerce also intensively communicates with its regional chambers and tradesmen associations. Together we therefore analyze negative consequences for business people and we summarize all the proposals of possible compensational solutions. Afterwards we will use those in the following discussions with the relevant State bodies.

Follow the news of the past days.

 

Information line of the Ministry of Transport of the Czech Republic providing information regarding the special precautions taken in international transport

+420 225 131 820

Information line of the Ministry of Industry and Trade of the Czech Republic for tradesmen and business people

+420 224 854 444

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We apologize for any possible delays in our response. Currently, the number of questions exceeds the capacities of our team. We will answer all your questions as soon as possible. Thank you for your patience.

Your questions are being answered in cooperation with our partners:

#TogetherWeWillManage

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The measures of the Government and the course of action for business people recommended by the Czech Chamber of Commerce

The basic summary of the measures was obtained from the website BusinessInfo.cz.

Natural person NP
Legal person LP
Concrete MeasureProgramExplanationCourse of ActionPushed through by CCC/
coordinated with CCC
NP/LPInterest-free credits by CMZR Bank (CZK 0.5-15 mil.)COVID I
NP/LPInterest-free credits by commercial banks with a guarantee from CMZR Bank (CZK 0.5-15 mil.)COVID II
NP/LPGrants for the production of medical equipment for fight against COVID-19Technology COVID-19
NP/LPSupport of the development of new solutions for COVID-19Czech Rise Up – Smart Measures against COVID-19
NP/LPOP EIC call deadlines prolongationOP EIC
NP/LPPostponement of the submission deadline for both corporate and personal income tax returns and for withholding tax settlementTax Liberation Package I
NP/LPPardon of sanctions in case of delayTax Liberation Package I
NP/LPPardon of administrative feesTax Liberation Package I
NP/LPPostponement of the deadline for VAT control statementTax Liberation Package I
NP/LPRemission of both personal and corporate income tax advance paymentsTax Liberation Package II
NP/LPPostponement of another EET (Electronic Evidence of Takings) waveTax Liberation Package II
NP/LPRetroaction of tax loss in case of both personal and corporate income taxesTax Liberation Package II
NP/LPState reimbursment to employers paying wage compensations due to obstacles at work - forced operations reduction and quarantineAntivirus
NP/LPState reimbursment to employers paying wage compensations due to obstacles at work - related economic difficultiesAntivirus
NP/LPProlongation of the care-giver's allowance duration for employees---
LPSubsidies for organisational and process innovations implementations with regards to the COVID-19 disease risksThe Country for The Future – Subprogram 3 – Innovation into Practice
NP"Care-giver's allowance" also for the self-employed---
NPRemission of the social insurance premiums advance payments---
NPRemission of the healthcare insurance premiums advance payments---
NPCZK 15.000 per month for the self-employed---
NP/LPCancellation of the real estate transfer tax---
NP/LPRoad tax postponement---
NP/LPToll collection postponement---
NP/LPChanges in insolvency law---

Last update of the table March 31st, 2020, 9 p.m.

The table is being translated and will be finished as soon as possible.

 

The measures of the Czech Chamber of Commerce and their fulfilment

PrecautionAimed atFulfillmentComment
Income tax return until July 1stall affectedaccepted both by the respective resort and by the GovernmentIn case a businessman files the income tax return whenever during the period ending by July 1st, 2020, there will be neither fines nor default interests. This measure comes automatically - there is no need to ask for it specifically. It results from the decision of the Minister of Finance of the Czech Republic.
Synchronization of income and expenses report submission with the postponed submission of the income tax returnself-employedaccepted both by the respective resort and by the GovernmentThe deadline for the report submission to healthcare insurance coporations was, by the briskly approved Ammendment to the Act on public healthcare insurance premiums, postponed to August 3rd, 2020. By the decision of the Czech Social Security Administration, the report submission for the purpose of the social security insurance premiums is postponed to the same date and that without any sanctions.
Across the board cancellation of income tax advance payments and insurance premiums - minimally up to autumn 2020self-employedaccepted by the respective resort/in negotiationThe Minister of Finance of the Czech Republic did, for now, by her decision pardon the income tax advance payment to be paid on June 15th, 2020, for all the taxpayers (not only for the self-employed). The monthly healthcare and social insurance premiums advance payments were cancelled by a sped-up amendment procedure of the relevant acts of law for the duration of half a year (from March to August) for the self-employed. CCC, however, wants to cancel also the income tax advance payment to be paid on September 2020.
Total remission of the social security premiums paid by employers themselves and that for the month of March (for now)all affected employersin negotiationCCC wants for the business people who had to close their establishments as a consequence to the Government Resolution not to have to pay neither pension nor sickness insurance premiums and not even the financial contribution to the State employment policy for the month of March. The social insurance premiums paid by employees by a wage deduction will still be mediated by the employer.
Total remission of VAT for the month of March (for now)all affected employersin negotiationThe business people who had to, in accordance with the Government Reoslution, close their establishments will not have to pay VAT for the month of March.
Postponement of VAT paymentsall affectedaccepted both by the respective resort and by the GovernmentThe Tax Offices are instructed to grant the requests for both the deferment and the remission of default interests. It is possible to submit those requests free of charge up to July 31st. In the case such request is at least partially granted, the tax payer will be also relieved of the fine for a late tax return submission.
Sped up return of excessive VAT deductionall affectedin negotiationThe Tax Office will as soon as possible transfer the respective amount of money to those taxpayers who have, after submitting their VAT tax returns, any reimbursement claims.
VAT payment based on paid invoicesall affected, particularly SMEsin negotiationThe company would not again get into a situation when it has to pay taxes from the goods and services provided that, however, was not yet paid by the customer. This measure would be limited by the restrictions resulting from the relevant EU directive.
Across the board postponement of road tax advance payments, temporary lowering of the tax rate to minimumall affectedin negotiationA businessman would pay the payments for 1st, 2nd and 3rd quarter in November of 2020, eventually those advance payments would be lower.
Postponement of social insurance premiumsall affected business peoplein negotiationA businessman could by an individual request pay his/her social insurance premiums at least 3 months later. This concerns the insurance premiums paid by the business people “for themselves”.
Postponement of healthcare insurance premiumsall affected business peoplein negotiationA businessman could by an individual request pay his/her healthcare insurance premiums at least 3 months later. This concerns the insurance premiums paid by the business people “for themselves”.
Zero interests on deferred paymentsall affectedaccepted by the respective resort/in negotiationThe general automatic default interests remission does, by the decision of the Minister of Finance of the Czech Republic, currently apply only to the real estate transfer tax payments to be paid after March 31st, 2020, for the delay or determent of up to 5 months. When it comes to other tax payments and healthcare insurance premiums, the decision is based on a submitted individual request. In the case of social insurance premiums, there is not even such a possibility. CCC wants to broaden those automatic processes.
Tax relieves for companies producing the necessary protective healthcare, pharmaceutical and hygienic (disinfectants) equipmentchosen companiesin negotiationAn income tax or VAT relief in cases when companies, in a reasonably short time and in a reasonable quantity, manufacture the mentioned equipment which will be afterwards realized for a cost price.
Reimbursement based on the total amount of wage compensations paid to employeesall affected employersaccepted both by the respective resort and by the GovernmentThe business people will be provided with a State compensation which will be given out by the Labour Offices in the framework of the approved program "Antivirus". Currently, the wording of the framework agreement between the Labour Office and the employer, same as other relevant forms and methodological guidelines are being finalised.
Activation of “kurzarbeit” (in the framework of the wage compensations)all affected employersaccepted both by the respective resort and by the GovernmentThe compensation with regards to the obstacles caused by the decreased sale ("kurzarbeit") will be provided in the framework of the Government approved program "Antivirus".
Increasement of individual ceiling for State contribution to reimbursement for employers paying wage compensations to employees experiencing obstacles at workall affected employersin negotiationThe current "median" wage of 31,000 Czech crowns that serves, in the framework of the "Antivirus" program, as a basis for calculating the limits for the particular types of obstacles is for many companies too low.
Continuous reimbursement for paid wage compensations by the means of lowering the monthly payments of social security premiumsall affected employersin negotiationThe State reimbursement of the paid wage compensations to the employees experiencing obstacles at work will be preferentially in the form of the compensation of the paid sum by the corresponding lowering of the monthly payments of social security premiums. Thus, the administrative work will be minimalized and the process quickened.
A special compensation of income loss due to a closed establishmentself-employedaccepted by the respective resort/in negotiationAn allowance for the duration of the special precautions causing the closing of chosen establishments. Should serve as a complement of the already approved program "Antivirus". The Minister of Finance of the Czech Republic for now announced an allowance of 15,000 Czech crowns for the self-employed.
Compensation of the income loss due to other "obstacles in doing business"self-employed, managing directors, statutory representatives of companiesaccepted by the respective resort/in negotiationThe business people would be provided with a State compensation. Should serve as a complement of the already approved program „Antivirus“ in other cases than in those caused by the ordered closing of the establishements. The Minister of Finance of the Czech Republic for now announced an allowance of 15,000 Czech crowns for the self-employed.
Payment of care-giver’s allowance linked to closing of schoolsself-employedaccepted both by the respective resort and by the GovernmentState compensation for the self-employed who had to stay at home with their children due to the closure of schools has been enacted by law.
Discounted/interest-free loans (CZK 0.5-15 mil.)all affectedaccepted by the respective resort/in negotiationOn March 16th, 2020, the program COVID I in which framework CMZR Bank provides the interest-free loans with up to a one year instalments postponement was launched. The capacity of this program (both financial and organisational), however, is limited. The applications admission was, therefore, stalled on March 20th, 2020, already.
Discounted/interest-free loans in a wider rangeall affected, particularly SMEsaccepted by the respective resort/in negotiationAccording to the Ministry of Industry and Trade of the Czech Republic, the program COVID II, in which framework the commercial banks will provide the affected business people amongst its clients with credits from 10,000 to 15,000,000 Czech crowns with the State guarantee (by CMZR Bank), is to be launched in April.
Appeal to banks and insurance corporations to be more benevolent towards business debtorsSMEs and self-employedaccepted by the respective resortThe small business people have to be met at commercial banks with a reasonable and solidary attitude in the cases of the enforcement and recovery of such claims. Some banks are already acting this way.
State participation in the consequences of default in repayment of credits to banksself-employedin negotiationIn the case a self-employed is late with his/her instalment, the State is to compensate one half of the default interest and/or contractual penalty. The concrete conditions of compensations amounts are in negotiation.
State participation in the consequences of delays in paying utility bills and other inputs from network suppliersself-employedin negotiationIn the case a self-employed is late with his/her payment, the State is to compensate one half of the default interest and/or contractual penalty. The concrete conditions of compensations amounts are in negotiation.
VAT rate reduction for accommodation from current 15% to 10%all affectedin negotiationThe accommodation services have to be, in the nearest time possible, moved to the category of lower VAT rate. Doing business in the tourism sector is currently presumably impacted in the worst way.
Improved clarity of the Government provided information on the coronavirus epidemicall affectedaccepted by the respective resortSee a dedicated webpage on the website BusinessInfo.cz here (currently in Czech only).
Data box - quick and simpleself-employedin negotiationAll tradesmen should have the possibility to operativelly set up a data box for an electronic communication with state bodies and other institutions.
Easy electronic communication with the authoritiesself-employedin negotiationAn easy electronic communication with State bodies and other institutions should be temporarily and for chosen operations made possible for the tradesmen who do not have neither data box nor electronic signature.
Appeal to both municipalities and private landlords to remit rents and penalties for late rent paymentsall affectedaccepted by the respective resort/in negotiationIn the case when a businessman is late with his/her rent payment to the municipality, the fines and default interests will be remitted by an individual request. After an individual assessment it is also possible to remit the whole rent payment. The business people should be met with a reasonable and solidary attitude of the private landlords. Some municipalities are already announcing such a course of action.
Appeal to municipalities to postpone or remit local feesall affectedaccepted by the respective resort/in negotiationIn the case when a businessman is late with his/her local fee payment to the municipality, the fines and default interests will be remitted by an individual request. After an individual assessment it is also possible to remit the whole payment or all payments. Some municipalities are already announcing such a course of action.

Last update of the table March 27th, 2020, 9 p.m.

 

20 demands of the Czech Chamber of Commerce for business people

  1. State compensation of default interests and fines paid to banks. In the case a self-employed is late with his/her instalment, the State is to compensate one half of the default interest and/or contractual penalty.
  2. State compensation of default interests and fines paid to energy and network services suppliers. In the case a self-employed is late with his/her payment and the financial situation of the supplier in question does not allow a more responsive attitude towards the customers, the State is to compensate one half of the default interest and/or contractual penalty.
  3. Increasement of individual ceiling for State contribution to reimbursement for employers paying wage compensations to employees experiencing obstacles at work. The current wage of 31.000 Czech crowns that serves as a basis for calculating the particular types of limits is for many companies too low.
  4. Discounted/interest-free loans. It is necessary for the State to facilitate the business people access to discounted/interest-free loans from commercial banks including the small operating loans.
  5. Banks’ leniency towards debtors. We ask banks and insurance corporations to be more lenient and responsive towards the debtors.
  6. Postponement of insurance premiums without penalty. The State should allow the business people to pay the social security and healthcare insurance premiums 3 months later at minimum and that without any sanctions or default interests. This demand concerns the insurance premiums paid by the business people “for themselves”.
  7. Total remission of social security premiums paid by employers themselves and that for the month of March (for now). This demand concerns the business people who had to close their establishments as a consequence to the Government Resolution, it does not concern the premiums deduced from the employees’ wages.
  8. Total remission of VAT for the month of March (for now). This demand concerns the business people who had to close their establishments as a consequence to the Government Resolution.
  9. Sped up return of excessive VAT deduction. Important mainly for exporters when considering cash flow.
  10. Introduction of a VAT payment regime resulting from the paid invoices. The Ministry of Finance of the Czech Republic should make use of the leeway given by the European directives and quickly prepare an ammendment to the Act on VAT which would temporarily introduce, at least for some payments, the so called cash principle of paying taxes. Many companies, especially the small ones, are getting into financial troubles when a tax resulting from the goods or services provided is to be paid in cases when those were not paid by the customers in the first place.
  11. An allowance to self-employed and eventually also to managing directors and statutory representatives of companies for the duration of special precautions causing the closing of chosen establishments. Should serve as a complement of the approved mechanism of the employees’ wage compensations and the reimbursement of those compensations paid by the employers.
  12. Across the board cancellation of income tax advance payments. The State has to make the across the board cancellation of income tax advance payments possible and that not only those to be paid by June deadline.
  13. Across the board postponement of road tax advance payments. Postpone the advance payments for the 1st, 2nd and 3rd quarter to November of 2020. Consider a temporary lowering of tax rate to a minimum set by the European directive.
  14. Postponement and remission of local fees. CCC appeals to municipalities to postpone or remit local fees to be paid by business people.
  15. At least a partial income tax relief for companies producing the necessary protective healthcare, pharmaceutical and hygienic (disinfectants) equipment and that in cases when companies, in a reasonably short time and in a reasonable quantity, manufacture the mentioned equipment which will be afterwards realized for a cost price – alternatively, to enable such producers to, for the time of emergency, offer those goods without VAT with preserving their claim for a VAT deduction in its entirety.
  16. Lower VAT for accommodation services. CCC demands the accommodation services to be moved, in the nearest time possible, to the category of lower VAT rate (from the current 15% to 10% category).
  17. Postponement and remission of rents paid to municipalities. CCC appeals to municipalities to remit business people’s rents and penalties for late rent payments. We also appeal to the private landlords to be lenient towards the business people tenants.
  18. State reimbursement of wage compensations paid to the employees experiencing obstacles at work to be preferentially provided by monthly social security insurance premiums deductions in the amount of the compensated sum. This demand concerns those months during which the payments will not be remitted or postponed.
  19. Operative and easy set up of data box for all business people for electronic communication with the State bodies and other institutions.
  20. Temporarily allowing easy electronic communication with chosen state bodies for tradesmen who do not have neither data box nor electronic signature. This concerns e.g. the notification of a trade licence interruption by an e-mail with a confirmation in person at a Trade Licensing Office later.

Tax related issues

Detail tax related information is available on the website of the Ministry of Finance of the Czech Republic and the Financial Administration of the Czech Republic. The problematics of relieves and premiums, however, is (as yet) not being solved centrally. Insurance payers always have to submit their applications for changes in insurance premiums, applications for insurance payments and penalties in instalments and in case of healthcare insurance premiums also the applications for penalty remissions individually. More information is available on the website of the Czech Social Security Administration and also on the websites of the healthcare insurance companies.

When it comes to insurance,

  • the Czech Chamber of Commerce strives for, in case of self-employed, a better synchronization of submission deadline for income and expenses report with the new option to submit the income tax return later including the penalty remission for an eventual balance premiums both granted by the new decision of the Minister of Finance of the Czech Republic. It does not make much sense for a tradesmen to submit income and expenses report and pay their balance premiums in May when the tax return and income tax payment is supposed to be due on July.
  • in the case of employers who are paying monthly premiums the Czech Chamber of Commerce requests the ministries and the Government to find a solution which would guarantee penalty remissions linked to deferred (by instalments) insurance premiums. One of the options would be to quickly adopt a special amendment to the Act on the social security insurance premiums in the regime of legislative emergency together with a draft legislation on some changes in social security with regards to the emergency measures during the 2020 epidemic by which the Ministry of Labour and Social Affairs wants to flexibly supplement the current system of the care-giver’s allowance. Such an amendment could in this emergency situation introduce also the option of retrospective penalty remissions.

Tax payment deferment (currently in Czech only)

Tax liberation package of the Ministry of Finance of the Czech Republic (currently in Czech only)

The model examples of the most frequent requests for download

Below you can download the model examples of the two most frequent requests that are being submitted by the business people to their Tax Offices. The model examples were prepared by tax advisers and lawyers of the crisis team of the KODAP consultancy group. Actually, those model examples are a sort of an aid which contains the directly applicable elements of the request (normal text), some instructions for completion (text in yellow) and also examples of the individual data to be put in the request (italics). Therefore, it is not as easy as just filling in the name, or rather the name of the company, and the sum – the request has to be modified according to the situation of the individual businessman. Also, you should find it helpful to monitor the information servis of the KODAP consultancy group where you can find continuously updated useful and relevant information.

The third model example is a statutory declaration which temporarily replaces the medical certificate and the medical fitness of the person applying for a job. The form, prepared by the server BusinessInfo.cz, is limited by the duration of the announced emergency state.

Other model examples will be added later.

Request-model_example-Deferral

Request-model_example-Advance_Payments_Cancellation

Statutory_Declaration-model_example-Temporary

Information for foreign workers

A foreigner working in the Czech Republic by the means of an employee card can, from March 20th, 2020, until the end of the emergency state, change his/her employer or job even earlier than after 6 months. This measure was implemented by the amendment to the Act on the foreigners’ stay on the territory of the Czech Republic of last year. This change, however, is still a subject to notification to the Ministry of the Interior of the Czech Republic in accordance with the conditions defined by law. More information including the forms for such change is available here.

Where to apply for financial aid?

Those entrepreneurs who are negatively impacted by current economic difficulties connected with the coronavirus can make use of the offer of State services, particularly those of the Czech-Moravian Guarantee and Development Bank (CMZR Bank). Those services include, e.g., the preferential credits for companies or guarantees for operations or project financing.

For companies impacted by the coronavirus, starting from March 16th, 2020, CMZR Bank offers interest-free loans for business people COVID ranging from 500,000 to 15,000,000 Czech crowns. Further information regarding the process for drawing the COVID Credit and the answers to frequently asked questions is to be found here (currently in Czech only). The applications will be accepted by all branch offices of the CMZR Bank, however, strictly via e-Registry. The applications admission was temporarily stalled on March 20th, 2020.

On March 30th, 2020, CMZR Bank announced together with the Ministry of Industry and Trade of the Czech Republic the program COVID II. CMZR Bank will, for tradesmen, therefore the self-employed included, and the small and medium size enterprises alike, guarantee the credits provided by commercial banks and will also contribute up to 1 million Czech crowns to interests payment. The program is financed by the Operational Programme Enterprise and Innovations for Competitiveness (OP EIC) of the Ministry of Industry and Trade of the Czech Republic. Commercial banks are prepared for the COVID II program. The applications admission for this program is to start on April 2nd, 2020. More information is available here (currently in Czech only).

EGAP prepared a package of measures for exporters affected by the pandemic of COVID-19 disease

The Export Guarantee and Insurance Corporation (EGAP) did, in order to facilitate the insurance arrangement, prepare a package of measures meant to suppor exporters who are dealing with the negative consequences of the necessary restrictions keeping the viral infection from further spreading. The aim of this package is to lower the companies’ risks, accelerate their cash-flow and increase the availability of such an important financial instrument as a credit. More information can be found here (currently in Czech only).

Announcement of the Czech Banking Association concerning the adoption of the emergency measure by banks in the form of credits payments postponement

The Presidium of the Czech Banking Association gathered on March 12th, 2020, for a nonscheduled meeting in order to discuss the precautions that will ease up the economic impacts of the ongoing epidemic on their clients, primarily on the ordinary citizens and the clients among the small businesses and tradesmen. The Presidium agreed that to provide clients with a 3 month long postponement of the mortgage and consumer credits payments is a useful instrument in the documented cases. Thus, the banks will primarily focus on such clients as employees or self-employed – it is possible to assume that those will be affected by the epidemic in the worst way. For more information visit the website of the Czech Banking Association.

List of currently available information by competent institutions, useful links

Government of the Czech Republic

During the emergency Government meeting on Sunday March 15th, 2020, the Government led by the Prime Minister, Mr. Andrej Babiš, decided in the framework of its preventive steps against the coronavirus spread to adopt further emergency measures. Starting at midnight, March 16th, 2020, and lasting until March 24th, 2020, 6 a.m., the Government announced restriction of free movement of people excluding the defined exceptions. The Government also prolonged the reestablishement of border guarding.

Ministry of Health of the Czech Republic

On March 13th, 2020, the Ministry of Health of the Czech Republic launched a new website on COVID-19. It contains important information, questions and answers, important contacts and links, the evolution of events in the course of time, summary information for citizens, employees, employers and healthcare professionals. It also monitors the current incidence of COVID-19 in the Czech Republic, provides emergency measures and recommendations, and lists laboratories which test for a new coronavirus.

Ministry of Labour and Social Affairs of the Czech Republic

The Ministry of Labour and Social Affairs of the Czech Republic introduced a program on the security of employment. Precise wording can be found on the website. MoLSA also published a well-arranged table “Ten Commandments of the Labour Law in the Fight Against the Coronavirus” (currently in Czech only).

Ministry of Foreign Affairs of the Czech Republic

The Ministry of Foreign Affairs of the Czech Republic prepared an Emergency package which will help the business people in their undertakings on foreign markets in the current situation. In the scope of this package the business people will have the possibility to make use of the services of Czech Embassies forming the foreign network of the Czech Republic and other State instruments with a substantial State support. The measures are synergic and present a logical follow-up to the packages and support programs announced by the Ministry of Industry and Trade of the Czech Republic, the Export Guarantee and Insurance Corporation and by the Czech-Moravian Guarantee and Development Bank. More information is available here (currently in Czech only).

Ministry of Industry and Trade of the Czech Republic

The Ministry of Industry and Trade of the Czech Republic did with regards to the emergency state caused by the coronavirus pandemic activate a special information line for tradesmen and business people: +420 224 854 444.

Ministry of Transport of the Czech Republic

Any and all information regarding the precautions taken in transport including the matters related to disinfection can be found on the website of the Ministry of Transport of the Czech Republic. The information line providing information regarding the special precautions taken in international transport is the following: +420 225 131 820.

Ministry of Finance of the Czech Republic

The Government approved the package of tax measures responding to the current situation that is to be one of the palette of measures currently under approval whose aim is to help the economic subjects to cope with the emergency state. The exact technical parameters of the liberalizing package will be published on Monday, March 16th, 2020, in the Financial Newsletter and on the website of the Financial Administration. For more information visit the website of the Ministry of Finance of the Czech Republic.

National Institute of Public Health

The National Institute of Public Health (NIPH) continuously monitors the ceaselessly evolving situation around the occurrence of the new coronavirus. Further investigations of both SARS-CoV-2 and other experiences with COVID-19 are ongoing at the international level. The NIPH monitors available sources of information, including procedures and methodologies issued by ECDC and WHO, whose expert teams analyze and assess the current situation on the spot. New confirmed information is published on the website.

Hygienic Station of the City of Prague

The Hygienic Station of the City of Prague collects links from relevant sources to the current situation on its website. It also provides information on the established information and advisory telephone lines of the Hygienic Station of the City of Prague.

ARROWS advisory group

The ARROWS Law Office offers on its website legal information concerning the COVID-19. It consists of for example videos in which the leading experts of ARROWS answer the questions mainly related to the labour and contractual law or the questions regarding the damages payment by the State. ARROWS also prepared a practical handbook with regards to the damages payment, labour law and contracts.

We also recommend to monitor the information for business people on the website www.businessinfo.cz.

Information from the Regional Chambers of Commerce

Chamber of Commerce of Olomouc District

The Chamber of Commerce of Olomouc District registers requests, suggestions and topics from business people and companies from the region. All of those are summarized in this document (in Czech only). “Let’s not let the coronavirus long-lastingly damage the long-established Czech economy, the traditional industry and consequently also the development of the region, the Czech Republic and the living conditions of our co-citizens. Many companies are already on the edge of their bare existence. This, however, is not a result of their unpreparedness or instability but rather of purely objective factors and directly of the precautions taken with regards to the emergency state,” says Mr. Radim Kašpar, the Director of the Chamber of Commerce of Olomouc District.

Further useful information on the measures taken can be found on the websites of the trade associations and expert sections incorporated in the Czech Chamber of Commerce

Association of Communication Agencies

Association of Direct Marketing, E-Commerce and Mail Order

Association of Driving Schools of the Czech Republic

Association of Innovative Pharmaceutical Industry

Association of Laundry and Drycleaners of the Czech Republic

Association of Manufacturers and Suppliers of Medical Devices

Association of Petrol Stations of the Czech Republic

Audiovisual Producers’ Association + calculation of losses due to the coronavirus

Automotive Industry Association + 5 demands of the automotive industry to deal with the COVID-19 consequences (currently in Czech only)

Confederation of Chemical Industry of the Czech Republic

Czech Association of Hotels and Restaurants + frequently asked questions with regards to the accommodation services (currently in Czech only) + analysis of the of the impacts on the tourism sector (also in Czech only)

Czech Association of Interim Management

Czech Confederation of Commerce and Tourism

Czech Eletrotechnical Confederation

Czech Fitness Chamber

Czech Furniture Association

Czech Welding Society

Federation of Food and Drink Industries of the Czech Republic

Fellowship of chimney sweepers of the Czech Republic

Guild of mechanical lock systems of the Czech Republic

Guild of painters, varnishers and wallpaper-hangers of the Czech Republic

Section of Healthcare and Social Services of the Czech Chamber of Commerce

Seniors Care Association

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