Support measures currently in place for legal persons and entrepreneurs to tackle the COVID-19 epidemic in the Czech Republic

1. COVID Rent – 2nd Call

The state is again trying to offer a helping hand to entrepreneurs with the payment of rent via second call of COVID RENT subsidy having the parameters and conditions slightly different from the first call.

1.1 Persons eligible to receive support under the COVID – RENT program

Persons eligible to receive support under the COVID – RENT program are:

1. catering establishments (restaurants, cafes, bars, pubs, tea houses, etc);


2. music, dance, game and similar social clubs and discos;


3. movie theatres;


4. congresses and other educational events, exhibitions and fairs;


5. commercially operated sports grounds in the interiors of buildings (eg gyms, playgrounds, ice rinks, courts, rings, bowling or billiard rooms, training facilities);


6. commercially operated artificial swimming pools (swimming pools, pools for infants and toddlers, paddling pools), wellness facilities including saunas, solariums and salt caves, unless it is the provision of health services by a health service provider;


7. zoos;


8. commercially operated museums, galleries, exhibition spaces, castles, chateaux, observatories, planetariums and similar historical or cultural objects (excluding theaters); and


9. facilities providing services to persons aged 6 to 18 focused on activities similar to hobby education pursuant to Section 2 of Decree No. 74/2005 Coll.

1.2 Parameters and conditions

1. Compensation of 50 per cent of the total rent for the period of third calendar quarter of 2020.


2. Participation of the landlord in the form of remission of the rent is no longer needed.


3. The subsidy will be paid ex-post after payment of 50 per cent of the rent to the landlord by the applicant (tenant).


4. A cap of maximum CZK10 million. This cap applies to every individual applicant, not every individual lease (ie regardless on number of leases the cap stays the same).


5. Details will be published on the MIT (Ministry of Industry and Trade) website.

2. New Antivirus Plus program

Due to the current measures in connection with the spread of coronavirus disease, the support of companies that had to close their operations on the basis of a government decision will also increase significantly. From 1 October, employers can now use new Antivirus Plus program to be entitled to the full amount of compensation paid, not just 80 per cent, as it is in usual Antivirus A programme.

Antivirus Plus is intended for companies with forced operation restrictions, it is not applicable for quarantined employees. The employer shall now receive 100 per cent of wage compensation and the ceiling is increased to CZK50,000 per employee. 

2.1 Persons eligible to receive support under the Antivirus Plus program

Employers whose operations have been closed down or reduced as a result of the crisis management or emergency measures taken by the government, the Ministry of Health or regional hygiene stations. 

Typical examples of eligible operations:

• Restaurants, even if they have an "dispensing window" open
• Closed stores and service providers

2.2 Parameters and conditions

The amount of contribution will amount to 100 per cent of the compensatory wage, including any levies, paid by the employer to the employee during the time when impediments to worked existed. The maximum monthly contribution per employee is CZK50,000.

The contribution under the Antivirus Plus program cannot be provided to an employer which has received public support provided under point 3.1 of the Temporary Framework (i.e. COVID Rent, COVID Cultre, COVID Spa and some Operation Program Employment projects) in the amount of more than EUR 800,000. Also the contribution within the Antivirus Plus programme will included to the total limit of EUR 800,000 per employer. Finally, the contribution under the Antivirus Plus program cannot be provided to an employer which was a “company in difficulty” as defined by the European Commision.

3. Extension of Antivirus A program

Antivirus A, will be extended until the end of this year. The conditions of this program remain the same (80% of the costs for employee’s wage compensation but maximally CZK39,000 per employee).

Antivirus A program is designated for the compensation of costs for employees’ wage compensation the employers must pay during the employees’ quarantine. Also the employers who are net eligible for the new Antivirus Plus program can still use the Antivirus A program for compensation of the costs for employees’ wage compensation  in case when the operation of the employer has been closed or significantly restricted in relation to the governmental coronavirus measures.

4. Extension of Antivirus B program

Antivirus B, in which the state contributes to compensation of employees' wages in companies affected indirectly by the coronavirus crisis (for example, through a decline in sales or input supplies), is extended until the end of the year. The conditions of this program remain the same (60% of the costs for employee’s wage compensation but maximally CZK29,000 per employee).

5. Ministry of finance support program

5.1 Prolongation of previous exceptional measures

The Ministry of Finance also prolonged other exceptional measures from previous support programs:

1. general revocation of the administrative fee for submitting applications to the tax or customs office;


2. waiver of interest on late payments;


3. waiver of interest on suspended payments;


4. waiver of a fine for failure to submit an inspection report;


5. refund of taxes on importation and remission of unpaid customs fees;


6. confirmation of indebtedness; and


7. widespread exemption of VAT on gratuitous supplies of basic protective equipment.

5.2 Tax breaks in place extended

Given the difficult situation of many taxpayers, the Ministry of Finance extended the validity of the tax breaks introduced under the spring support programs and extended them.

5.3 New tax break

A fundamental novelty is the newly implemented tax break intended for those entrepreneurs whose business activities were immediately restricted due to a government decision. Entrepreneurs whose predominant activity falls into one of the fields explicitly targeted by government bans have now automatically deferred all payments of VAT, income taxes and road tax, which were due during the current state of emergency. They are required to send a notification to the Financial Administration that they meet the conditions of the General Pardon of the Minister of Finance, ideally by email.

5.4 The eligible business activities

Eligible business activities are:

1. restaurants and bars;
2. music, dance, game and similar social clubs and discos;


3. concerts and other musical, theatrical, film performances;


4. organizing wedding celebrations, celebrations of joining a registered partnership and funerals;


5. operation of circuses and variety shows;


6. organizing pilgrimages and similar traditional events;


7. organizing congresses and other educational events;


8. organization of trade fairs;


9. operation of indoor sports facilities, gyms and fitness centers, artificial swimming pools, wellness facilities;


10. operation of zoos; and


11. operation of museums, galleries, exhibition spaces, castles, chateaux and similar historical or cultural objects, observatories and planetariums,

all provided that the above stated business activities comprise a predominant part of the entrepreneurs income and the entrepreneurs informs the competent tax administrator.

5.5 Parameters and conditions

1. Waiver of interest on late payments arising from VAT for the tax period September 2020, October 2020 and November 2020, or on VAT for the tax period III quarter 2020, if the tax to which the interest is paid no later than 31 December 2020.


2. Waiver of advances on road tax for the tax period of 2020, payable on 15 April 2020, 15 July 2020, 15 October 2020 and 15 December 2020.


3. Waiver of advances on income tax payable in the period from 15 October 2020 to 15 December 2020.

6. COVID sport 2 program

The support provided by the program will be divided into two areas.

6.1 Support area A

The program is focused on the support of business entities that participate in professional competitions of the highest or second highest level, or matches of European and national cup competitions, or in one of the collective sports included in the Olympic program.

6.2 Support area B

1. Program is focused on the support of business entities organizing or co-organizing sports events.


2. The maximum amount of the subsidy in support area B per one business entity (one applicant) is set at CZK10 million. The minimum amount of the total eligible costs of the application is set at CZK1 million. The grant provided to the beneficiary in support area B will cover a maximum of 50 per cent of the eligible costs set by the program.

7. COVID culture 2 program

7.1 A total of CZK750 million will be invested in the 2nd call in the COVID - Culture program by the end of this year.

7.2 Newly, individuals in the artistic and professional artistic-technical professions (self-employed) will also be able to apply for the subsidy, and they will be able to receive a one-time CZK60.000 subsidy. It will be possible to reimburse companies up to CZK10 million.

8. Tourism support program

Due to the negative effect of the COVID pandemic on tourism in the Czech Republic, COVID Tourism Support program is currently being discussed by the government.

An amount of CZK500 million is prepared in the program, as it will be announced by the end of October this year and it will be possible to use until June 2021.

8.1 Persons eligible to the support granted by the program

1. Tour operators.


2. Travel agencies.


3. Tourist guides.

8.2 Support for tour operators

The amount of support amounts to a maximum of 2.75 per cent of the planned revenues from the sale of tours and from the sale of tourism services, which are part of the combined travel services for 2020.

8.3 Travel agency support

1. The subsidy is calculated on the basis of the number of tours.


2. The amount of CZK500/canceled trip due to a pandemic, which was purchased in the period from 1 December 2019 to 1 October 2020 and for the canceled stay in a spa at the time when the facility was closed, shall be provided.


3. If a number of conditions is met (these are still to be specified), a subsidy will be provided to incoming travel agencies in the amount of CZK50,000.

8.4 Support for guides

1. The total amount of the subsidy per guide is CZK50,000; assuming that the guide:
   
   
   1. provides educational services free of charge for at least 10 hours to school facilities established by the state, municipality or region (according to the work report confirmed by the school principal); or
   
   
   2. completes further education or a retraining course accredited by the Ministry of Education, Youth and Sports for the purpose of further employment on the labor market (eg pedagogical minimum).
2. An applicant who meets the general conditions but has not met the conditions under paragraph 7.4(a)(i) or 7.4(a)(ii) is eligible for an application for a maximum amount of CZK40,000.

The specifics of the Tourism Support program should be revealed in the following days.

If you have ant questions please contact your usual contacts at DLA Piper Prague or reach us at prague@dlapiper.com