The measures of the Czech Chamber of Commerce and their fulfilment

PrecautionBusiness PeopleFulfillmentComment
Income tax return until July 1stall affectedaccepted 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 Government and by the Parliament of the Czech RepublicThe 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 both by the Government and by the Parliament of the Czech RepublicThe 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 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, 2020. 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. For example, the principle of reimbursement depositing introduced by the amended tax law should be implemented even before its coming into effect.
VAT payment based on paid invoicesall affected, particularly small and medium size enterprisesin 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 paymentsall affectedaccepted both by the Government and by the Parliament of the Czech RepublicA businessman will pay the April and July advance payments on October 15th, 2020.
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”. Currently, such a process is approved only for natural persons in the form of social insurance premiums advance payments remission for 6 months.
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”. Currently, such a process is approved only for natural persons in the form of healthcare insurance premiums advance payments remission for 6 months.
Zero interests on deferred paymentsall affectedaccepted by the GovernmentThe 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 those automatic processes to be broadened.
Tax relieves for companies producing the necessary protective healthcare, pharmaceutical and hygienic (disinfectants) equipmentchosen companiesaccepted by the GovernmentThe Ministry of Finance of the Czech Republic will remit at least VAT payments in cases of free-of-charge delivery of chosen goods (face masks, respirators and other protective equipment, disinfection and materials for their production). The Czech Republic obtained from the European Commission an approval of customs and VAT payments for the medical material destined for fight against the coronavirus which is imported from the countries outside of EU and which is distributed free of charge or to the hospitals. This remission will take effect retrospectively and that from January 30th to the July 31st, 2020.
Reimbursement based on the total amount of wage compensations paid to employeesall affected employersaccepted both by the Government and by the Parliament of the Czech RepublicThe 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". The requests can be filed from April 6th, 2020.
Activation of “kurzarbeit” (in the framework of the wage compensations for employees experiencing obstacles at work)all affected employersaccepted 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".
Increase of individual ceiling for State contribution to reimbursement for employers paying wage compensations to employees experiencing obstacles at workall affected employersaccepted by the GovernmentAn increase of the originally proposed wage of 31,000 Czech crowns that would have served as a basis for the limits calculations of the particular types of obstacles within the "Antivirus" program was achieved and that to the average wage increased to its super-brutto level of 48,400 Czech crowns.
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 both by the Government and by the Parliament of the Czech RepublicThe Chamber of Deputies of the Parliament of the Czech Republic approved a Law draft on a special bonus for the self-employed in the amount of 25,000 Czech crowns. The original Law draft that concerned only a small group of tradesmen was, based on a pressure exerted by the Czech Chamber of Commerce, revised.
Compensation of the income loss due to other "obstacles in doing business"self-employed, managing directors, statutory representatives of companiesaccepted both by the Government and by the Parliament of the Czech RepublicThe Government approved a Law draft on a special bonus in the amount of 25,000 Czech crowns. This bonus covers also other obstacles than only the immediate closing of an establishment but it is aimed solely at the self-employed. The Minister of Finance of the Czech Republic admitted a possible revision of the draft during the upcoming legislative procedure.
Payment of care-giver’s allowance linked to closing of schoolsself-employedaccepted both by the Government and by the Parliament of the Czech RepublicState 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 both by the Government and by the Parliament of the Czech RepublicOn 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 small and medium size enterprisesaccepted both by the Government and by the Parliament of the Czech RepublicUp to April 3rd, 2020, the applications are being admitted for the COVID II program, in which framework the commercial banks will provide the affected business people amongst its clients with credits from CZK 10 thous to 15 mil. with the State guarantee (by CMZR Bank) and with a contribution for the interests.
Appeal to banks and insurance corporations to be more benevolent towards business debtorssmall and medium size enterprises, self-employedaccepted both by the Government and by the Parliament of the Czech RepublicThe small business people should 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. The Government, however, chose a restrictive approach. The Chamber of Deputies of the Parliament of the Czech Republic approved a Law draft which will enable the banks' clients to choose whether to interrupt their credits instalments payments for 3 or 6 months.
State participation in the consequences of default in repayment of credits to banksself-employedaccepted both by the Government and by the Parliament of the Czech RepublicIn 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. The Government introduced an alternative and the Chamber of Deputies of the Parliament of the Czech Republic approved a Law draft which will enable the banks' clients to choose whether to interrupt their credits instalments payments for 3 or 6 months. When it comes to legal persons, the principals payments will be stopped for that duration, however, the interests must be paid nonetheless.
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 GovernmentSee a dedicated webpage on the website BusinessInfo.cz here (currently in Czech only).
Data box - quick and simpleself-employedaccepted by the GovernmentAll tradesmen should have the possibility to operativelly set up a data box for an electronic communication with State bodies and other institutions. The CzechPOINT offices can, according to local conditions, adjust their office hours and that, among others, in order to quickly and flexibly set up the data boxes for those interested in doing so.
Easy electronic communication with the authoritiesself-employedaccepted both by the Government and by the Parliament of the Czech RepublicAn 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. The lawmakers approved a simplification of some procedures, e.g. when it comes to submitting a request for the compensation bonus for the self-employed or an alternative announcement of interest for making use of the credits instalments payments protected period.
Appeal to both municipalities and private landlords to remit rents and penalties for late rent paymentsall affectedaccepted both by the Government and by the Parliament of the Czech RepublicIn 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 should also be possible to remit the whole rent payment. The business people should be met with a reasonable and solidary attitude of the private landlords as well. Some municipalities are already announcing such a course of action. The Chamber of Deputies of the Parliament of the Czech Republic approved a Law draft which will enable the tenants (business people) to postpone their rents for the duration of 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.
Appeal to municipalities to postpone or remit local feesall affectedaccepted by the GovernmentIn 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 April 10th, 2020, 2:10 p.m.

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