Government Approves CZK 1,000 Per Day Compensation For Businesses Affected By Pandemic Measures
As of November 22nd, the government will be providing up to CZK 1,000 per day compensation for small businesses and the self-employed. Credit: Freepik.
Czech Rep, Nov 25 (BD) – A new law approved by the Czech government will see new financial relief for self-employed people, small businesses, and non-employed/contract workers to assist with financial stress related to the Covid-19 pandemic. The relief period will apply from November 22nd to December 31st, 2021, with a second period from January 1st-31st, 2022. Further compensation periods may be added, depending on the course of the pandemic and government measures.
“I have no doubt that this proven compensation model will find strong support in Parliament across the political spectrum, and that the Financial Administration will be able to start paying money to those affected as soon as possible,” said outgoing Finance Minister Alena Schillerová.
Self-employed persons and entrepreneurs will be eligible for compensation of CZK 1,000 per day if they have faced a drop in sales of at least 30% caused by the pandemic and/or the government measures put in place which restrict business services. Additionally, non-employed/contracted workers, as well as business owners who have been quarantined or isolated, will be eligible for CZK 500 per day. This is also applicable if the beneficiary was ordered into quarantine or isolation.
One of the conditions for applying for the bonus is that the person must have an active trade license as of November 22nd, 2021. However, those who have suspended their trade license for a maximum of 1 year before that date will still be eligible, to include people who only work during certain seasons.
One condition is that self-employed and small business owners must be covered by health insurance to apply for the relief. The program will have a negative effect on the public budget. According to the Ministry of Finance, it will cost approximately CZK 10.4 billion, from a combination of the state budget, municipal budgets and regional budgets.
Those wishing to apply for compensation can find the application form at www.mfcr.cz/bonus. You can also apply through by posting an application, e-mail, data box or in person at the tax office.