Approval of new proposals for support of companies, self-employed persons and empolyees in connection with COVID-19

On 24 March 2020, the Chamber of Deputies of the Czech Republic (hereinafter “ChDCR”) approved several new proposals for support of companies, self-employed person, as well as employees, in reaction to the current situation relating to the COVID-19 disease. In an accelerated proceeding in the state of legislative emergency, ChDCR approved the following proposals related to the intention to reduce the effects of the current epidemic on selected entities:

1. government draft bill on some adjustments in social security in connection with the emergency measures during the epidemic in the year 2020 (Parliamentary print 784):

1. an employee, who is looking after a minor at the age from 10 years, who has not reached 13 years of age yet, is also entitled to caregiver allowance;
2. parents will be able to alternate in looking after the children as needed;
3. caregiver allowance for employees – calculated as 60 % of reduced base of assessment;
4. the supporting time for caregiver allowance is being prolonged by the time, during which the facility or school was closed due to emergency measures during the epidemic.

2. government draft bill amending act 592/1992 Coll., on public health insurance premium (Parliamentary print 785):

1. self-employed persons are obliged to submit the Survey of income and expenses of self-employed persons for the year 2019 until 3 August 2020 at the latest;
2. the self-employed person does not pay insurance prepayments up to the amount of one twelfth of the minimum base of assessment (i.e. the minimum monthly prepayments) for the period from the beginning of March 2020 to the end of August 2020;
3. The self-employed persons, who pay higher prepayments, are only obliged to pay the difference between their insurance prepayment and the amount calculated from one twelfth of the minimum base of assessment for the period of March to August 2020; the self-employed person may decide to pay the prepayments by means of an underpayment within 8 days after the day, on which the survey for the year 2020 is to be submitted;
4. the insurance prepayment, which a self-employed person would pay for the period of March 2020 to August 2020, is considered paid to the amount calculated from one twelfth of the minimum base of assessment (savings reaching CZK 14,112);
5. the penalty relating to insurance premium, which incurred in the period from the beginning of March 2020 to the end of August 2020, will not be assessed. The penalty, which is an accessory of insurance originally due within the protective period, will begin to incur on 22 September 2020 at the earliest;

3. government draft bill on some adjustments in social security insurance and contribution to the state employment policy and pension insurance in connection with the emergency measures during the epidemic in the year 2020 (Parliamentary print 787):

1. self-employed persons are not obliged to pay prepayments for pension insurance and contribution to the state employment policy for the calendar months in the period of March to August 2020;
2. lowering of insurance premium for pension insurance and the contribution to the state employment policy for the year 2020 by the amount of CZK 15,264 in case of performing a self-employed activity for the entire calendar year of 2020.

4. government draft on some adjustments in electronic record of sales (EET) in connection with the declaration of a state of emergency (Parliamentary print 788):

1. cancellation of the obligation to fulfil obligations under the EET act excepting the obligation of treating authentication data, the certificate for record of sales and the receipt pad in such a way as to prevent their misuse, until the date of termination of the state of emergency declared on 12 March 2020;
2. cancellation of the recording obligation and the obligation of placing an information announcement in the period of 3 months from the date of termination of the state of emergency declared on 12 March 2020 (the above-mentioned stipulation affects taxpayers, who already recorded sales before the beginning of the state of emergency, as well as postponing the last stage of EET implementation).

We continue to monitor the situation and will inform about you further changes.

In case of any questions regarding this issue, please, do not hesitate to contact us.