Information concerning the occurrence of COVID-19 disease
Last update May 22nd, 2020, 10:00 a.m.
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Weekly information summary (May 15th to 21st, 2020)
The Government of the Czech Republic approved on Monday the COVID III program. The aim of the COVID III is to, via the operating bank loans guarantees, support the businesses of up to 500 employees, the economic activities of which are limited as a result of the coronavirus infection occurrence and the related precautions. It will be possible to use the guaranteed loans for operating expenses, as for example wages, rents, energy payments, etc. More information is to be found here (in Czech only). As for the COVID III functioning, more information will be possible to obtain during an on-line webinar which we organize on May 26th, 2020 (for free for the Czech Chamber of Commerce members). At the webinar, also the people who have participated on this program preparation will make their speeches. Details concerning this event are to be found here (in Czech only).
Another Government approved program is the COVID – RENT by the Ministry of Industry and Trade of the Czech Republic. Now, this program has to be approved, or rather notified by the European Commission. After its notification, the Ministry of Industry and Trade of the Czech Republic will announce a call with detailed information and specification of the applications’ requirements. The program will concern such business people who had to fully close their establishments for goods and services sale due to the emergency precautions. The core of this program is expenses distribution among the landlords (can offer a rent discount in the amount of 30%), the tenants (must pay 70% of rent before discount) and the State (will provide a financial contribution to the tenant in the amount of 50% of rent before discount). The program will apply to the tenancy relationships in the 2nd quarter of the year 2020. The Czech Chamber of Commerce perceives as positive aspects the following: (1) the discount provision is not set as an obligation but as a possibility for the landlords, (2) the tenant has to actively negotiate the discount with the landlord (he/she is not just a passive beneficiary). On the other hand, the low flexibility of the program framework can be labelled as a negative aspect – the amounts of both the discount and the financial contribution are firmly set, there is nothing in between.
The Senate of the Parliament of the Czech Republic approved on Wednesday the Government proposal on the decrease of social security premiums penalties (print No. 259). In case the Law draft is signed by the President of the Republic, the employers will have the possibility to postpone their social security payments (i.e., 24,8%) that should be paid for the period from May to July even up to October 20th of this year. This way, the employers would pay only the insurance premiums for their employees (6,5%). The penalty, the rate of which is normally 0,05% of the sum owed per day, will be decreased to 0,01% per day up to October 20th, which will amount to roughly 1% in a quarter of a year. The companies, moreover, will have to pay only the penalties that will exceed 1,000 Czech crowns. The payment postponement will be granted without a need to submit any request. In case the employer will not send the social security payment for May to the District Social Security Administration up to June 20th (for June up to July 20th and for July up to August 20th), he/she will be granted a postponement with reduced interest rate. If the employer does not pay the sum owed up to October 20th, the Social Security Administration will assess a penalty corresponding to the usual rates. According to the Czech Chamber of Commerce statement, it is absurd that the payment postponement is presented as an aid while subsequently it is followed by sanctions. CCC did not, from the very beginning, agree, in this context, with any sanctions, however, its arguments were not answered by the legislative bodies.
The Minister of Labour and Social Affairs of the Czech Republic, Ms. Jana Maláčová, announced that the prolongation of the Antivirus program for companies affected by the coronavirus up to August, 2020, will be presented on the Monday Government meeting. The conditions for fund drawing, however, will not be completely identical. At the same time, the anti-crisis tax package should also be presented during the Monday meeting. The Czech Chamber of Commerce does, in general, support the changes in the income tax field and that mainly when it comes to the possibility of tax loss retroaction or VAT tax adjustment in the form of VAT rate decrease from the current 15% to 10% for accommodation and cultural establishments’ visits.
This week, the President of the Czech Chamber of Commerce, Mr. Vladimír Dlouhý, did, in a written form, address the Minister of Labour and Social Affairs of the Czech Republic, Ms. Jana Maláčová, with a request of electronic education support for the whole duration of the OPE (Operational Programme Employment) educational projects and also rules simplification for this form of education. Further prediction of the development related to the coronavirus spread is very uncertain, plus the electronic communication is a common part of the work, educational and family environments these days. Therefore, CCC does not consider this requirement as something exceptional, out of the ordinary society standards. An integral part of the letter is also the across the board prolongation of the current projects implementation (for example the call 110). We believe that MoLSA will acknowledge the unquestionable advantages of the electronic education and will accept it as an effective and welcomed tool for both the current and the future educational projects.
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
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 Measure | Program | Explanation | Course of Action | Pushed through by CCC/ coordinated with CCC |
|---|---|---|---|---|---|
| NP/LP | Interest-free credits by CMZR Bank (CZK 0.5-15 mil.) | COVID I | Credits for small movable and immovable property acquisition, for acquisition and financing of stocks and other operational expenses (wages, energy bills, rent and other). Credits in the amount CZK 0.5 to 15 mil., up to 90% of eligible project expenditures. Due period up to 2 years, instalments postponement up to 12 months. | The applications admission was stalled on March 20th, 2020. The application could have been filled here. |  |
| NP/LP | Interest-free credits by commercial banks with a guarantee from CMZR Bank | COVID II | Credits for small movable and immovable property acquisition, for acquisition and financing of stocks and other operational expenses (wages, energy bills, rent and other). Credits in the amount CZK 10 thous to 15 mil., up to 80% of eligible project expenditures. Due period up to 2 years, instalments postponement up to 12 months. Both without interests and fees. | The applications admission was terminated on April 3rd, 2020. The application could have been filled here. | |
| NP/LP | Grants for the production of medical equipment for fight against COVID-19 | Technology COVID-19 | Grants for the acquisition of new technology machines and equipment use of which would result in a production of materials, technologies and products of medical and personal protective equipment type. | The applications submission will be possible from April 27th, 2020, while the eligible expenses can date back as far as February 1st, 2020. Details will be published here. | |
| NP/LP | Support of the development of new solutions for COVID-19 | Czech Rise Up – Smart Measures against COVID-19 | The State support in material acquisition for protective and medical equipment production, eventually, wage expenses coverage./Support of chosen non-investment expenses for the use of current technologies for employment of new medical and non-medical solutions./Support of chosen non-investment expenses for development of new products for creation of new medical and non-medical solutions./Maximum support amount is CZK 5 mil. (according to the call). | The applications admission started on April 2nd, 2020. The applications can be submitted only via the data box of the Ministry of Industry and Trade of the Czech Republic (ID: bxtaaw4). The sole contact for your possible questions is: CzechRiseUp@mpo.cz. The application form and the manual for its completion are available here. | |
| NP/LP | OP EIC call deadlines prolongation | OP EIC | Deadlines prolongation of 30 days for all the calls where the applications admissions were not finished by March 17th, 2020, and do not extend over April 30th, 2020. | The applications for this grant can be submitted up to April 30th, 2020, and that without any sanctions or handicaps. | |
| NP/LP | Postponement of the submission deadline for both corporate and personal income tax returns and for withholding tax settlement | Tax Liberation Package I | Taxpayers can submit their tax returns as late as on July 1st, 2020, instead of on April 1st, 2020. | You can submit your tax return whenever up to July 1st, 2020, and that without any sanction or individual request. | |
| NP/LP | Pardon of sanctions in case of delay | Tax Liberation Package I | When it comes to requests for sanctions pardoning in the case of delays, the administration fees are remitted for all the requests filed up to July 31st, 2020. | In case you file a request, you no longer have to pay CZK 400. | |
| NP/LP | Pardon of administrative fees | Tax Liberation Package I | In case of requests for tax payment deferments all the administration fees for all the requests submited up to July 31st, 2020, are remitted. | In case you file a request, you no longer have to pay CZK 400. | |
| NP/LP | Postponement of the deadline for VAT control statement | Tax Liberation Package I | Taxpayers no longer have to submit their VAT control statements by the deadline. The fines for late submission of those control statements will be dealt with by an automatic pardon or by an individual request. | You can submit the control statement up to July 31st, 2020, and that without any sanction./Without a call of the tax administrator, all the fines for a late control statement submission, in the amount of CZK 1,000 and incurred in the period of Marh 1st to July 31st, 2020, will be automatically remitted. That concerns the fines in situations a businessman does not manage to submit some of the control statements within the legal deadline, therefore, he/she submits it later, however, before he/she is called on to do so by the Tax Office. | |
| NP/LP | Remission of both personal and corporate income tax advance payments | Tax Liberation Package II | Business people do not have to pay their personal and corporate income tax advance payments for the month of June. | It is not necessary to request a remission of the advance payment with a due date on June 15th, 2020, you simply will not pay it. | |
| NP/LP | Postponement of another EET (Electronic Evidence of Takings) wave | Tax Liberation Package II | Another EET wave will come 3 months after the termination of the emergency state. | The obligation of electronic evidence of takings is interrupted from March 12th, 2020, moreover, the last wave of EET will not start as yet. | |
| NP/LP | Retroaction of tax loss in case of both personal and corporate income taxes | Tax Liberation Package II | Introduction of the institute of tax loss retroaction when it comes to both personal and corporate income taxes for the year of 2020, for the tax years of 2018 and 2019. | In case a businessman submits a tax return for the year of 2020 that would result in a tax loss assessment, he/she will be able to submit a supplementary tax return for the year of 2019 in which this tax loss will be employed. It might be that based on the tax loss amount either the postponed tax payment for the year of 2019 would not have to be paid (in case the businessman successfully requested its postponement) or he/she will even be, based on a request, given the overpayment for the earlier paid income tax. Will be specified. | |
| NP/LP | State reimbursement to employers paying wage compensations due to obstacles at work - forced operations reduction and quarantine | Antivirus | Regime A: In case of a quarantine, the employee is provided with a wage compensation of 60% of the average reduced pay; In case of closed operations by the Government decree, the employee is provided with a compensation of 100% of his/her wage. | The applications can be electronically submitted starting from April 6th, 2020, to a Labour Office of the Czech Republic. Afterwards, an agreement between the employer and the Labour Office of the Czech Republic will be made electronically. Following the wages closing and attendance evidence for the relevant month (possible also for March and that starting from the day of emergency state announcement, i.e., March 12th, 2020), wage compensations payment to employees and proper payment of the insurance premiums, the employer fills in and sends to the Labour Office of the Czech Republic a special electronic form with individual data of employees experiencing obstacles at work for whom the employer will request a State reimbursement. All the necessary information will be on the website of the Ministry of Labour and Social Affairs of the Czech Republic. | |
| NP/LP | State reimbursement to employers paying wage compensations due to obstacles at work - related economic difficulties | Antivirus | Regime B: Obstacles at work on the side of the employer caused by the quarantine or taking care of children by a significant number of employees (30% and more) - the employee is provided with a wage compensation of 100% of the average pay; Limited availability of inputs (raw materials, products, services) necessary for the business activity - the employee is provided with a wage compensation of 80% of the average pay; Cutback in demand for services, products and other companie's outputs - the employee is provided with a wage compensation of 60% of the average pay. | The applications can be electronically submitted starting from April 6th, 2020, to a Labour Office of the Czech Republic. Afterwards, an agreement between the employer and the Labour Office of the Czech Republic will be made electronically. Following the wages closing and attendance evidence for the relevant month (possible also for March and that starting from the day of emergency state announcement, i.e., March 12th, 2020), wage compensations payment to employees and proper payment of the insurance premiums, the employer fills in and sends to the Labour Office of the Czech Republic a special electronic form with individual data of employees experiencing obstacles at work for whom the employer will request a State reimbursement. All the necessary information will be on the website of the Ministry of Labour and Social Affairs of the Czech Republic. | |
| NP/LP | Prolongation of the care-giver's allowance duration for employees | --- | The employees will be provided even retrospectivally with the care-giver's allowance for the whole duration of the closure of schools, kindergartens and other facilities. | In case you have filed a request for care-giver's allowance, you will be provided with it and that without any special request for the whole mentioned period - even retrospectively. | |
| LP | Subsidies for organisational and process innovations implementations with regards to the COVID-19 disease risks | The Country for The Future – Subprogram 3 – Innovation into Practice | 50% grant for expenses directly linked to innovation implementation according to GBER, articles 28 and 29. Moreover, up to 25% of the budget could be used, within the de minimis, for the expenses linked to the project, however, not falling under GBER. | The application to be filled is here. | |
| NP | "Care-giver's allowance" also for the self-employed | --- | The amount of the allowance is set at CZK 424 per day and it could be drawn for the whole duration of the emergency precautions./The allowance could be drawn by the self-employed who takes care of a child younger than 13 years of age (record day is the day of the child’s 13th birthday) who goes to school or other facility which has been closed due to the coronavirus – applicable in cases there is no allowance or other financial benefit for the same child provided to another person./The allowance is also for such self-employed who take care of an unprovided for child younger than 26 years and that up to the 26 years of age who depends on an aid of another person (at least I. degree) and cannot attend school which is closed due to the coronavirus./The allowance can be drawn by the self-employed who takes care of a disabled person who is dependent on an aid of another person (at least I. degree). | Possible to apply for this allowance starting from April 1st, 2020, at any Municipal Trade Licensing Office./The forms and details will be published by the Ministry of Industry and Trade of the Czech Republic on its website: www.mpo.cz./It is necessary to attach to the application a statutory declaration saying the applicant: 1) is, for the duration of drawing the allowance, practising the self-employment as the main activity, 2) is registered as an income tax payer at the Tax Office, 3) is a small or medium businessman and 4) does not have any balance payments towards the Tax Office, Czech Social Security Administration and healthcare insurance corporation. | |
| NP | Remission of the social insurance premiums advance payments | --- | Social insurance advance payments for the period of March to August are remitted across the board. In case the self-employed already paid the advance for March, it is figured in as an advance for September./In case the self-employed pays advances of higher assessment than the minimum, he/she pays the difference according to the real income and expenses which he/she will have in the year of 2020 in the form of balance insurance premium for the year 2020 (in 2021)./For the purpose of the pension insurance, the advances for the period of March to August 2020 are considered paid./The period of March to August 2020 is, for the purpose of pension calculation, considered as an excluded period which means that not paying the advances will not have any effect on the amount of the future pension. | It is not necessary to pay the social insurance premiums advance payments for the period of March to August (we recommend to cancel a possible standing order to your bank). Moreover, next year, when you will be calculating the insurance premiums payments for this year, a sum equal to 6 minimum monthly advances will be automatically deduced. | |
| NP | Remission of the healthcare insurance premiums advance payments | --- | The advance payments for the period of March to August 2020 in the minimum amount are remitted (for self-employment as a main activity it is CZK 2,352 per month). In case the self-employed already paid the advance for March, it is figured in as an advance for September./In case the self-employed pays advances of higher assessment than the minimum, he/she pays the difference between the minimum and real advance payment assessment in the form of balance insurance premium for the year 2020 (therefore in the year of 2021)./The deadline for the income and expenses report of the self-employed submission is prolonged to August 3rd, 2020. In case the self-employed submits the income and expenses report for the year 2019 until August 3rd, 2020, and pays the balance insurance premium within the 8 subsequent days, his/her fine, that would have otherwise had to be paid for a late payment, will be remitted. | It is not necessary to pay the healthcare insurance premiums advance payments for the period of March to August (we recommend to cancel a possible standing order to your bank). Moreover, next year, when you will be calculating the insurance premiums payments for this year, a sum equal to 6 minimum monthly advances will be automatically deduced. | |
| NP | One-off allowance of CZK 25,000 for the self-employed | --- | All the self-employed who are not employees (with an exception of DPP (the people working on the basis of the agreement to complete a job)) and were active to March 12th, 2020, are eligible. Eligible are also the self-employed whose activity was interrupted whenever after the August 31st, 2019 (seasonal business). | Starting from April 15th up to June 30th, 2020, you can request this allowance in person at your Tax Office, via e-mail and that even without an electronic signature, via a data box or via the tax portal here. | |
| NP/LP | Cancellation of the real estate transfer tax | --- | A tax of the amount of 4% from the total purchase price is to be cancelled. | Will be specified | |
| NP/LP | Road tax postponement | --- | Road tax advance payments with a due date in April and July could be paid up to September 15th, 2020. Moreover, all the default and deferment interests will be remitted across the board. | Will be specified | |
| NP/LP | Toll collection postponement | --- | It should be possible to pay the invoices for toll payments for lorries within a 3 month period, that is for the vehicles in a regime of subsequent payment (by invoice) for the period from April 1st to July 31st, 2020. | Will be specified | |
| NP/LP | Changes in insolvency law | --- | The changes react to the difficult situations of many debtors. | Will be specified | |
| NP/PL | Postponement of rent payments for premises used for business activities | --- | It will be possible for the tenants (business people) to postpone their rent payments by 3 months (up to June 30th). In case the businessman documents that he/she is not able to pay, his/her contract cannot be terminated on the basis of unpaid rent and that up to December 31st, 2020. | Will be specified | |
| NP/PL | Postponement of credits installments payments | --- | The banks' clients will have the possibility to choose 3 or 6 months long interruption of credits instalments payments. When it comes to legal persons, the principals payments will be stopped for that duration, however, the interests must be paid nonetheless. | Will be specified |
Last update of the table April 10th, 2020, 2:30 p.m.
20 demands of the Czech Chamber of Commerce for business people
- 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.
- 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.
- Support of continuous operations companies (the so called Regime C). Introduce the State contributions for wages paid by companies which have to, due to various reasons, maintain their continuous operations (e.g. glassworks or steelworks) eventhough it causes financial losses.
- Prolongation of the Antivirus program by 6 months. It is necessary the Antivirus program is not cancelled with lifting of the emergency precautions. Therefore, the current Antivirus program should be prolonged by 6 months.
- Wage compensations program for restart of the economy (the so called Regime D). It is possible to consider a residual Regime D which would currently compensate, even if “less generously”, the wage expenses of other business people negatively affected by the pandemic and the Government precautions against it, therefore, all those not included in the Regimes A, B or C. In the future, after lifting of the emergency precautions and termination of mainly the Regime A, this Regime would support a restart of the economy.
- 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.
- Banks’ leniency towards debtors. We ask banks and insurance corporations to be more lenient and responsive towards the debtors.
- 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”.
- Total or at least partial remission of social security premiums paid by employers themselves and that for the months of the emergency state duration. 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.
- Total remission of VAT for the months of the emergency state duration. This demand concerns the business people who had to close their establishments as a consequence to the Government Resolution.
- Sped up return of excessive VAT deduction. Important mainly for exporters when considering cash flow.
- 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 amendment 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.
- Expanding the compensation bonus. The “Five-and-twenty” for the self-employed is supposed to be paid out also to the people working on the basis of the agreement to perform work (DPČ) and that at least for the emergency precautions duration causing establishments’ closure. Should serve as a complement of the approved mechanism of the employees’ wage compensations and the reimbursement of those compensations paid by the employers.
- 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.
- 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.
- Postponement and remission of local fees. CCC appeals to municipalities to postpone or remit local fees to be paid by business people.
- 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.
- 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).
- 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.
- 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.
Last update on May 14th, 2020
