Czech government approved direct financial support to entrepreneurs

The Czech government approved the draft legislation on compensation bonus on Monday, November 22. The document provides for financial assistance payment to individual entrepreneurs (OSVČ) suffered from new quarantine restrictions.

They will be able to get 1000 korunas for every day of restriction that impeded them to run business. Referring only to the period from November 22 to January 31 maximum bonus amount will be 71 thousand korunas.

Similar compensation will be paid to the founders of small businesses (s.r.o.) and people working under the service agreement (na dohodu). The Ministry of Finance will also reduce requirements for assistance recipients. Though only the entrepreneurs whose income decreased by at least 50% due to quarantine restrictions could apply for it before, now the limit has been lowered to 30%.

The comparative period will be considered any three consecutive months in between June and October 2021.  For example: should the entrepreneur’s income amount  to 30 thousand korunas in December, the average income for three months of the comparative period (for example, for June, July and August) being 50 thousand korunas, he/she will be able to receive a bonus, as the drop in income exceeds 30%.

The Parliament must now approve the innovation to come into effect. It is expected to happen in upcoming weeks. The detailed information about the entrepreneurship support program can be found on the website of the Ministry of Finance.

It should be noted that the similar program operated in the Czech Republic last year and this spring. As before, the entrepreneur will personally have to submit an application at the tax office by email or on the website of the financial management using a special form. The details will be published before launching the program.