Subsidies Announced to Support Self-Employed and Small Businesses During State Of Emergency
Small business owners and sole traders whose businesses have been directly affected by the coronavirus will receive CZK 500 per day from the state. A further CZK 400 per day will be given to those of them who have lost earnings due to taking care of a child or dependent. Photo: Minister of Finance Alena Schillerová. Credit: Vlada.cz Archive.
Czech Rep., Oct 20 (BD) – On Friday, October 16th, the Czech Government approved a proposal from the Ministry of Finance to renew the compensation bonus. Self-employed people and partners in small companies who have had to close their business or reduce operation due to the coronavirus will be compensated with the amount of CZK 500 per day from the state.
The compensation bonus follows the same parameters as the model which proved effective in the Spring. The Financial Administration will pay 500 crowns for each day that the establishment is closed or that the business is directly affected.
“Our clear priority was simple and minimally bureaucratic support for the most affected sole traders and small businesses, to provide help as quickly as possible and not leave them with unnecessary uncertainty. That is why we have agreed with a number of business associations and chambers to renew the compensation bonus, through which the tax authorities released almost CZK 22 billion in the Spring,” said Minister of Finance Alena Schillerová.
Those eligible for compensation include the self-employed and small limited liability companies with a maximum of two partners. The claims are valid for each day the business is closed as a direct result of the government restrictions during the state of emergency. The proposed period is from October 5th to November 4th, 2020. Find more details on the Ministry of Finance website.
The compensation is a refund of personal tax income from the state and local government budgets.
The government approved further compensation for Czech self-employed people and small companies who have lost income because they had to care for a child or dependent (under 26 years) affected by long-term health issues, school closures or quarantine. They will receive CZK 400 per day of school closure.
The Ministry of Industry and Trade has allocated CZK 200 million from the budget to support this subsidy program.