School closure – since 11th of March to unknown date
The Ministry of Healthcare has banned the students from entering the schools and children from entering the kindergardens.
Link

Shops closure – since 14th of March, 6:00 to 11th of April, 6:00 (period may be extended)
The government ruled to close all stores except grocery stores, pharmacies, drugstores, petrol stations and some others. This also applies to services such as hairdressing and beauty salons.

Suspension of EET for an emergency period of three months
Electronic sales records will be suspended for the period of declared emergency and the following three months. Thus, no entrepreneur will have to record his sales and the authorities will not check this obligation. (Act No. 137/2020 Coll.)

1) Submission of an overview for 2019

An overview of income and expenditure for 2019 can be submitted by a self-employed person without sanctions until 3 August 2020. If the self-employed person also pays the insurance surcharge on this date, he will be remitted a penalty that would otherwise have to pay for late payment.

2) Forgiveness of social insurance

From March to August self-employed persons will not have to pay the prescribed backups and in their annual accounts, their total insurance will be reduced by the amount corresponding to the minimum pension backups for half a year. The period from March to August continues to count towards pension entitlements.

How will this work in practice?
Traders do not have to request anywhere. The change applies automatically. It is applies for everyone (self-employed with main and secondary gainful activity).

Does this mean that I do not pay any compulsory social security contributions at all?
The only payment will be the payment of sickness insurance for voluntarily insured self-employed persons. The differences will be in the 2020 billing:

  • Do you pay minimum advances? You are fully forgiven for the mandatory pension insurance payments for March to August.
  • Do you pay more than minimal advances? From March to August you do not have to pay any deposit. However, in the next year’s annual billing, you will only pay back the difference between the minimum deposit and the actual premium according to your 2020 profit for these 6 months.

By when do I have to pay the deposit difference next year?
You will pay the difference in advance as a supplement to the insurance premium after submitting an overview of income and expenses of self-employed persons for the year 2020.

3) The Care Benefit for self-employed person

  • Applicant:
    • Self-employed persons who were not able to carry out self-employment for a certain period due to measures against the spread of coronavirus infection and care for a child under 13 years of age or handicapped person (similarly as for employees of the Czech Republic – school facilities or facilities for handicapped persons are closed), which is supported by conclusive documents. Provided that no other person receives the care benefit or other allowance for the same child.
    • Self-employed in main activity – proves by affidavit
    • Must be registered as a tax payer with the tax office – proves by affidavit
    • Must be a small or medium sized entrepreneur – proves by affidavit
    • Shall not have any arrears to the Tax Office, the Czech Social Security Administration or the health insurance company – proves by affidavit
  • Application: HERE
  • Provider: Ministry of Industry and Trade
  • The objective of the aid is a financial contribution to compensate the self-employed with measures against coronavirus – nursing a family member – of CZK 424 per day for up to 13 144 CZK per month.
  • The Care Benefit is requested for each calendar month. The subsidy will be sent to the self-employed bank account specified in the application.
  • The Care Benefit will be able to draw all the time, as long as the emergency measures apply.

How to apply?

Phase 1: Starting date for receipt of applications: 1 April 2020 at 9.00
End of applications: 30/04/20 to 23:59
Allocation per phase: CZK 100 million
1. The applicant shall complete the application for a subsidy in a simple form in the Czech language. HERE
2. The applicant shall submit an application, including attachments, to the Ministry of Industry and Trade:
– Via the data box wnswemb, to introduce fpmpo20 into the subject, or
– By e-mail, whose attachment will be a completed electronic signature form including
attachments to fpmpo20@mpo.cz and include fpmpo20 in the subject, or
– Original application signed by the applicant by post to: Ministerstvo průmyslu a obchodu,
Na Františku 32, 110 15 Praha 1, the envelope must be labeled “fpmpo20”.
3. Required annexes to the application for the  Care Benefit are:
–  Application form / affidavit
–  Confirmation of closure of school facility or facility for handicapped person

4) Interest-free loans

5) Interruption or termination of self-employment and records at the Labor Office of the Czech Republic

Can I register as a self-employed person at the Labor Office of the Czech Republic?
In order for a self-employed person to be registered with the Labor Office of the Czech Republic, it is necessary to interrupt or terminate business activities. The self-employed person must notify the relevant district social security administration (DSSA) in writing of the suspension or termination of business. Self-employed persons will need confirmation of the periods of participation in pension insurance and the last assessment base for the purposes of the Labor Office of the Czech Republic. The request for this confirmation can be sent (preferably with the request for interruption or termination of business) also by e-mail to the electronic registry of the relevant DSSA. The self-employed person can then be contacted by the DSSA by telephone to verify the authenticity of the submission.

Recommended Action:

  • Application – It is recommended to send this notification electronically (directly from the CSSA ePortal, to the DSSA data box or as an e-mail attachment), or by post. The district social security administrations will also accept sending by e-mail without a guaranteed electronic signature.
  • If the self-employed person also needs a confirmation of the insurance participation period for the purposes of the Labor Office of the Czech Republic, it is possible to send an application for the confirmation by e-mail to the electronic registry of the relevant DSSA. If the application implies that the confirmation is to be delivered either by post to the permanent address of the self-employed person or directly to a specific Labor Office, the e-mail need not be electronically signed. In other cases, the application must be sent either by data box or with an electronic signature, or it can be physically filled in the box at the relevant district social security administration.

When should I register at the Labor Office of the Czech Republic?
In the register of job seekers, a natural person is entered on the day of submitting (delivery) an application for employment mediation(with this application the application for unemployment benefit is sent) to the Labor Office of the Czech Republic. If the application is submitted no later than three working days after the interruption or termination of self-employment, the natural person is included in the register of job seekers from the day following the interruption or termination of business.

Both completed applications are sent to the workplace of the Labor Office of the Czech Republic in the place of permanent residence of a natural person via a data box or electronically with an electronic signature (performed directly in interactive application forms). If the self-employed person does not have an electronic signature, both completed applications can be sent by e-mail without an electronic signature. In this case, applications must be completed within 5 calendar days (in writing by post or in the mailbox of the Labor Office of the Czech Republic).

What do I need for applications?

  • Application for employment mediation:
    • document to verify identity, citizenship and place of residence (identity card),
    • proof of termination of self-employment
    • confirmation of assessment base
    • medical restriction document (medical opinion)
    • if you are engaged in a non-conflicting job (an activity based on an employment or service relationship where the monthly earnings do not exceed half the minimum wage, or an activity based on an agreement on work activity where the remuneration does not exceed half the minimum wage), it is the duty to report this activity and the amount of remuneration to the Labor Office
  • Application for unemployment benefit:
    • Confirmation of the duration of participation in pension insurance and the assessment base for social security contributions and contributions to state policy

6) Are self-employed persons entitled to any social benefits?

Everyone has the option of applying for any of the non-insurance social benefits, both for state social support benefits (birth grant, parental allowance, housing allowance) and assistance in material need (subsistence allowance, housing allowance and. extraordinary immediate assistance. The Labor Office of the Czech Republic always proceeds according to valid legislation and assesses each application for a specific benefit or its increase individually. Taking into account the specific situation of the applicant.

The entitlement to the grant and the final amount of non-insurance social benefits are based on the applicant’s current income and property situation and on the current amount of housing costs. Thus, it cannot be said in advance whether the entitlement to benefits arises and also the amount of benefits cannot be communicated in advance.

7) Support for small businesses

The Ministry of Finance prepared legislation to support small businesses affected by current anti-pandemic measures – one-off financial assistance of CZK 25,000. In view of the need to adopt the relevant legislation, we expect the measure to be effective in mid-April.

The act was passed by Parliament on Thursday 9 April 2020, bringing the legislative process considerably closer to its final and therefore the Financial Administration has started accepting applications. The support will be available until the end of June.

Requirements:

  • Self-employed person by law (independent farmer, author or artist, expert, interpreter, veterinarian, doctor, healthcare provider, architect, tax advisor and the like).
  • The activity performed is the main activity.
  • The activity performed may also be an ancillary activity if the self-employed person: 1) receives an invalidity or old-age pension 2) is on maternity or parental leave 3) takes care of a disabled person 4) preparing for future career (students)
  • The self-employed were active on 12 March 2020. Alternatively, they may also be a self-employed who later activated their activity, provided that their activity was interrupted at any time after 31 August 2019.
  • A self-employed person declares that he / she was unable to perform this activity in whole or in part above the normal level due to health threats associated with the occurrence of coronavirus or government emergency measures.
  • The applicant shall prove the fulfillment of these facts by a declaration on honor.

How much can I get?

The amount is CZK 25,000, ie CZK 500 for each day that the eligibility criteria are met. If a person does not meet the above condition for some time (eg he / she has not been a self-employed person), the bonus will be reduced accordingly.

Applications will be received by e-mail, post, via data box or through the Electronic Submissions for Financial Administration (EPO) application. The form is available HERE. 

No decision is taken on the application. You can recognize the processing of your application by crediting the support to the bank account.

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