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The Government of the Czech Republic puts forward new measures to assist employers, farmers and self-employed persons

These measures aim to curtail the economic impacts of enforced Covid19 restrictions on businesses

The Government of the Czech Republic puts forward new measures to assist employers, farmers and self-employed persons Source: Adobe Stock

On 23.03 the Government of the Czech Republic put forward several legislative measures to assist employers, farmers and self-employed persons which are yet to be approved in parliament. These norms can be summarized as follows:

  • A new act on the state budget for 2020 in response to the increase in government expenses due to the Covid19 outbreak. The state budget deficit will be increased from the originally stipulated 40 billion CZK, to 200 billion CZK. 
  • Self-employed persons will be exempt of compulsory pension insurance payments for 6 months. The lifting of compulsory health insurance payments for self-employed persons has also been proposed.
  • A so-called ‘liberation package’ aimed at allowing employers and self-employed persons to waive the June advances of personal and corporate income tax. Additionally, the proposed liberation package includes the postponing of the deadline for the submission of real estate tax returns to 31.08.2020.
  • A financial compensation for employers who have either:
    • Been unable to allocate work to their employees due to government enforced quarantine measures,
    • Are unable to fully staff their business due to the majority of employees having to care for children at home,
    • Cannot obtain the necessary material supplies for continuing business,
    • Are unable to continue business due to a decrease in demand for their products or services.
  • Assistance for smallholders and farmers in the form of:
    • Deferment of payments for commercial loans,
    • Guaranteed support for operational financing.
  • The zero-interest COVID I loan.
  • The planned COVID II program which aims to offer:
    • Zero-interest loans ranging from 10 000 CZK to 15 million CZK with a year’s repayment date from commercial banks. The Government of the Czech Republic guarantees for these loans through the Czech-Moravian Guarantee and Development Bank (CMZRB).
  • A financial contribution for self-employed persons who need to care for a quarantine family member or child. The contribution will be paid out on the basis of an affidavit filed through the Ministry of Industry and Trade (MPO).