Reliefs and compensation for self-employed persons to alleviate the effects of the pandemic

AUTUMN 2021

Status as of 4 January 2022, 1:00 PM (will be continuously updated).

DEUTSCHE VERSION ZUM HERUNTERLADEN Stand zum 25. November 2021, 13:00 (wird fortlaufend aktualisiert).

Compensation bonus

• In December 2021, a law from the Ministry of Finance on the compensation bonus came into force, which, as in earlier waves of the pandemic, aims to compensate self-employed persons and partners of small, limited liability companies (with a maximum of two partners, or family businesses).
• Once the conditions are met, the compensation bonus will be paid for each day in the amount of CZK 1,000 per day for self-employed persons or partners in an LLC. Self-employed persons in quarantine or isolation are always entitled to at least CZK 500 per day. Workers on an agreement outside employment can also apply for the same amount
• As before, the business must be the main source of income for the bonus claimant.
• For the time being, the law provides for two bonus periods. The first from 22 November to 31 December 2021, the second from 1 January to 31 January 2022. The government may subsequently establish further bonus periods by regulation in 2022 in light of developments.
• Those eligible for a compensation bonus are those whose income falls by at least 30% in the bonus period versus the comparison period, which is any three consecutive calendar months from June to October 2021.
• An exception is made for seasonal self-employed workers who cannot operate during the summer. They will compare their income in the bonus period with their income from 1 November 2019 to 31 March 2020 (i.e. the period before the pandemic started).
• Applications may be submitted no earlier than the end of the bonus period and no later than two months after the end of the relevant bonus period. It will therefore be possible to apply for the first bonus period until the end of February.
• Applications can be submitted online, by e-mail, by data box, by post or in person at the tax office.
• All further information on the compensation bonus can be found on the website of the Ministry of Finance here.

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