Factsheet for measure
CZ-2020-11/285
–
Updated
– measures in Czechia
Compensation bonus for self-employed and certain shareholders
Kompenzační bonus pro OSVČ a společníky malých s. r. o.
Background information
Self-employed persons who were hit by the restrictions stemming from the coronavirus crisis received from the Ministry of Finance of the Czech Republic (Ministerstvo financí České republky,
MF ČR
a compensation bonus of CZK 500 (€19) per every calendar day in the period from 12 March 2020, when the state of emergency was declared by the Government, until 8 June 2020. This measure should compensate losses caused to self-employed by anti-COVID-19 measures.
The total amount of the support for one self-employed was CZK 44,500 (€1,660) in the first period in 2020. The request for the compensation bonus has to be filled to the Tax Office up to 30 June 2020. The Tax Office should be disbursing this bonus without a delay and that solely by a cashless payment to the account of the self-employed.
Content of measure
For the bonus of CZK 44,500 are eligible self-employed who are doing business on their own, based on a trade licence or, for example, perform a liberal profession (musicians, writers etc.), or are doing business in agriculture or on the grounds of other Acts of law (medical doctors, veterinarians, attorneys at law, etc.). The self-employment has to be the main activity, however, in some cases it can be subsidiary activity (for example, for beneficiaries of disability or old-age pension or parental allowance).
A statutory declaration should be also attached to the request, stating that the self-employed met the conditions for the compensation bonus and is not able to continue in business appropriately due to the health threats and/or government anti-crisis measures adopted with the occurrence of COVID-19.
Updates
The following updates to this measure have been made after it came into effect.
|
23 December 2021
|
The Compensation bonus has been prolonged. There are two new bonus periods:
-
22 November 2021 to 31 December 2021 (with applications to be submitted until 1 March 2022)
-
1 to 31 January 2022 (with the applications to be submitted until 1 April 2022).
Self-employed eligible for the bonus had a decrease in sales caused by COVID-19 of at least 30% in the period between 1 June and 30 October 2021, with the exception of seasonal entrepreneurs, e.g. ski lifts, for whom the comparison period is November 2019 to March 2020.
If approved, self-employed people or a partner in a small business (up to two) receives CZK 1,000 (€40 approximately) per calendar day, for people performing work on the basis of an agreement on work performed outside the employment relationship (type of flexible employment contract with lower legislative protection) the compensation bonus is CZK 500 (€20 approximately) per calendar day.
|
|
06 May 2021
|
By the Resolution of the Government of the Czech Republic No. 434 of 6 May in 2021, the deadline for terminating the Compensation bonus for the self-employed person was extended to 31 May 2021 under the same conditions as in previous bonus periods in 2021.
|
|
29 March 2021
|
The government has approved other bonus period from 1 April to 30 April 2021 under the same conditions as in previous bonus periods in 2021.
|
|
24 March 2021
|
At the end of February 2021, the Act No. 95/2021 Coll., on compensation bonus for 2021 came into force. Self-employed persons, shareholders in limited liability companies and people performing work outside employment can ask for compensation bonus under the new regime. Now, the persons mentioned above don´t have to prove that they are running business in activities or sectors directly prohibited or restricted by crisis measures, or that their business is connected to these activities. However, self-employed and other eligible persons must now prove a 50% or higher decrease in income due to restrictive measures.
There is also an increase of the compensation bonus from CZK 500-1,000 per day (€19-38 approx.) The amount of CZK 500 is the same for people performing work outside employment. Other eligible persons can apply for more than CZK 500, however, the total amount of compensation bonus paid must not be higher than decrease in income.
New bonus periods according to above mentioned act are from 1 February to 28 February 2021 and from 1 March to 31 March 2021.
Compensation bonus still cannot be claimed in parallel with other compensation programmes, except the “Antivirus” program.
|
|
14 December 2020
|
For the compensation bonus, self-employed, shareholders in limited liability companies (having no more than two members, or family businesses as limited liability companies) and people performing work outside employment, who predominantly run businesses in sectors and activities hit by the second wave anti-COVID-19 measures, can apply also in so called third bonus period (22 November 2020 till 13 December 2020), fourth bonus period (14-24 December 2020) and fifth bonus period (25 December 2020 till 23 January 2021).
Other conditions stay the same as in the second bonus period (5-21 November 2020).
|
|
04 November 2020
|
Since 4 November 2020, self-employed, shareholders in limited liability companies (having no more than two members, or family businesses as limited liability companies) and people performing work outside employment, who predominantly run businesses in sectors and activities hit by the second wave anti-COVID-19 measures (e.g. restaurants, clubs, cultural and sport facilities) are entitled to file for a compensation bonus in the same amount as during the first wave of COVID-19, etc. CZK 500 (€19 approx.).
The bonus period is from 5 October 2020 (when the state of emergency was declared) to 21 November 2020. The total amount for one entrepreneur is CZK 24,000 (€912 approx.).
In contrast with the compensation bonus distributed to the entrepreneurs during the first wave of COVID-19 pandemic, the current form of compensation focus on the affected sectors of the economy. Entrepreneurs entitled to the bonus are only those whose predominant source of income in the eligible period from 1 June 2020 to 30 September 2020 was generated from a sectors and activities directly banned by the government (restaurants, bars, clubs, cultural and sport facilities).
For the compensation bonus can also ask entrepreneurs whose business activities were not directly banned or curtailed but who deliver goods, services or other outputs to entrepreneurs whose activities were banned or curtailed by the government’s anti-COVID-19 measures. In such a case, entrepreneur´s business activity has to be at least 80% rendered to activities banned or curtailed and cannot be easily replaced.
|
|
03 June 2020
|
Since 3 June 2020, the compensation bonus of CZK 500 (€19 approx.) is also offered to shareholders in limited liability companies (společnost s ručením omezeným) whose business have been affected by measures to contain the spread of the coronavirus. The period for which the bonus is paid, is the same as for self-employed – from 12 March 2020 to 8 June 2020. The request for the bonus has to be filled to the Tax Office up to 8 August 2020.
For the bonus, eligible are natural persons who:
-
are shareholders in a limited liability company which was incorporated to generate profit,
-
has no more than two shareholders; or
-
has several shareholders if such shareholders are family members,
-
were such shareholders on 12 March 2020,
-
had minimum turnover in 2019 at least CZK 180,000 (€7,056 approx.),
-
were, on 12 March 2020, tax residents of the Czech Republic.
|
Use of measure
No evaluation or information on effectiveness is available now, even the total number of supported self-employed. However, according to the survey of the Chamber of Commerce of the Czech Republic (Hospodářská komora České republiky,
HK ČR
realised in April 2020 among its Prague members, this measure has been evaluated by entrepreneurs as the best among seven others (COVID I and COVID II included) with the lowest level of bureaucracy.
As of 17 August 2020, in the Pětadvacítka programme (for the self-employed) (500 CZK/day), there were 920,893 applicants out of which more than 99.9% were supported by the total amount of CZK 20,171,257,500 (€775,818,000).
For the Compensation bonus for partners of small limited liability companies (500 CZK/day) 80,440 partners applied (more than 99.9% with success) with the total amount of CZK 1,712,286,000 (€65.857 million) distributed.
For the Compensation bonus for entrepreneurs (500 CZK / day), there were 827,797 applicants out of which more than 99.5% were supported by the total amount of CZK 7,520,576,719 (€289.253 million).
For the New compensation bonus for entrepreneurs (1,000 CZK / day), there were 195,010 applicant and 79,8% of which were supported by the total amount of CZK 3,726,159,604 (€143.314 million).
For the Compensation bonus for persons working on agreements outside an employment relationship (500 CZK / day) there have been 2,569 applicants out of which 94.6% were supported by the total amount of CZK 35,149,800 (€1.352 million).
In the decisive period of 22 November 2021 to 31 December 2021, 71,211 applications were supported in the total amount of CZK 2,300,000,000 (€93.249 million), with the average amount per applicant of CZK 32,723 (€1,326). 111 applications were not successful.
In the decisive period of 1 to 31 January 2022, 69,069 applications were supported in the total amount of CZK 1,800,000,000 (€2,977,903), with the average amount per applicant of CZK 26,000 (€1,054). 117 applications were not successful.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
Company / Companies
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Consulted
|
Consulted
|
|
Form
|
Consultation through tripartite or bipartite social dialogue bodies
|
Direct consultation outside a formal body
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
-
Main level of involvement: Peak or cross-sectoral level
Involvement
This measure has been in particular supported by the Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic (Asociace malých a středních podniků a živnostníků České republiky,
AMSP ČR
which is a member of the largest Czech employers´association, Confederation of Industry of the Czech Republic (Svaz průmyslu a dopravy České republiky
SP ČR
.
AMSP ČR cooperated with MF ČR on the design of the measure to be as fast, flexible and simple as possible. Many of AMSP ČR´s recommendations and suggestions has been taken into the account by MF ČR, which probably makes this measure relatively successful.
Views and reactions
Supportive.
Sources
-
30 March 2020: MF CR: MF CR open direct subsidy for self-employed (MF ČR spouští přímou podporu pro zasažené OSVČ)
(www.mfcr.cz)
-
03 April 2020: AMSP ČR suggests easier rules for compensation bonus (AMSP ČR: AMSP ČR navrhla zjednodušení pravidel pro výplatu náhrady pro OSVČ)
(amsp.cz)
-
15 April 2020: Act No. 159/2020 Coll., on compensation bonus in relation to emergency measures related to the occurrence of the SARS CoV-2 coronavirus/Zákon č. 159/2020 Sb., o kompenzačním bonusu v souvislosti s krizovými opatřeními v souvislosti s výskytem koronaviru SARS CoV-2
(www.zakonyprolidi.cz)
-
03 June 2020: Act 262/2020 Coll., amendment of the Act on compensation bonus in relation to emergency measures related to the occurrence of the SARS CoV-2 coronavirus/Zákon č. 262/2020 Sb., kterým se mění zákon č. 159/2020 Sb., o kompenzačním bonusu v souvislosti s krizovými opatřeními v souvislosti s výskytem koronaviru SARS CoV-2
(www.zakonyprolidi.cz)
-
08 June 2020: AMSP ČR: Rescue programme for self-employed has ended today (AMSP ČR: Plošný kompenzační bonus pro OSVČ dnes končí)
(amsp.cz)
-
19 June 2020: Chamber of Commerce: Survey among Prague entrepreneurs on COVID-19 measures (HK ČR: šetření mezi pražskými podnikateli ohledně vládních opatření proti COVID-19)
(www.komora.cz)
-
17 August 2020: Financial Administration: Statistics of bonus compensations/Finanční správa: Statistika čerpání kompenzačních bonusů
(www.financnisprava.cz)
-
01 January 2021: Financial Administration: Conditions for compensation bonus - self-employed/Finanční správa - podmínky pro poskytnutí kompenzačního bonusu - OSVČ
(www.financnisprava.cz)
-
01 January 2021: Financial Administration: Conditions for compensation bonus - shareholders/Finanční správa: Podmínky kompenzačního bonusu pro společníky s. r. o.
(www.financnisprava.cz)
-
01 January 2021: Financial Administration: Conditions for CB for performing work outside employment/Finanční správa: Podmínky KB pro dohodáře
(www.financnisprava.cz)
-
27 February 2021: Act No. 95/2021 Coll., on compensation bonus for 2021/Zákon č. 95/2021, o kompenzačním bonusu pro rok 2021
(www.zakonyprolidi.cz)
-
28 December 2021: Law on compensation bonus in 2022/Zákon kompenzačním bonusu pro rok 2022
(www.financnisprava.cz)
-
07 April 2022: Compensation bonus in 2022/Kompenzační bonus v roce 2022
(www.novinky.cz)
