The government yesterday approved a new system of compensation for entrepreneurs and companies affected by the effects of the coronavirus pandemic. The Minister of Industry and Trade Karel Havlíček (for YES) told ČTK. The compensation bonus for entrepreneurs will increase from CZK 500 to CZK 1,000 per day. Employers will also receive 500 crowns a day for each employee. In both cases, the main criterion will be to meet the decrease in sales by at least 50 percent. The Antivirus program will also continue, or other support that follows on from the Antivirus program.
According to the Ministry of Finance, the new system should help businesses reach businesses faster and in larger volumes. The support will be based on programs that have proven themselves and are working. These will also expand. “On the contrary, programs that have proved problematic will be curtailed,” the finance ministry said.
The material available to ČTK shows that the support will be focused on companies and entrepreneurs whose sales fell by 50 percent or more in the relevant period. The support will be provided from February this year at the earliest. “Support from existing special COVID programs such as COVID – accommodation, COVID – rent, COVID – sport will be provided no later than the period ending on 31 January 2021,” according to the press release.
Self-employed persons (self-employed persons) will thus be able to apply for a bonus of CZK 1,000 per day instead of the current CZK 500. The condition will be a decline in sales. However, an amendment to the Compensation Bonus Act needs to be adopted for this change.
At the same time, the Antivirus program will continue and employers will also continue to receive support based on the number of employees, namely CZK 500 per employee per day. At the same time, the condition of a decrease in sales by at least 50 percent will have to be met again.
To date, the Financial Administration has registered 587,406 applications for contributions, the so-called compensatory bonus, in connection with the government’s autumn measures. So far, it has paid 549,714 applications for CZK 4.9 billion. During the spring period, the administration received over a million applications from self-employed persons and partners of small companies and paid out approximately CZK 21.9 billion.
The right to a compensation bonus of CZK 500 per day belongs to entrepreneurs with business activities in directly limited or completely closed areas of the economy, for each day of restriction. At the same time, this activity must be the dominant source of livelihood for the applicant for the relevant period from June to September 2020. In addition to directly affected entrepreneurs, entrepreneurs who are at least 80 percent connected to directly closed fields can also apply for the bonus.
From the Antivirus program, the state pays with contribution A the entire wage with contributions up to 50,000 crowns in closed operations and 80 percent compensation of people in quarantine up to 39,000 crowns. With contribution B, labor offices match 60 percent of wage compensation when production and services are reduced due to a loss of demand, personnel or raw materials up to CZK 29,000.
According to the original European rules, the Antivirus program was to run for a maximum of one year. However, the European Commission extended the deadline until the end of the year and also increased the total amount that companies can receive. The government can extend the antivirus again.
Source: CTK
