The Czech Ministry of Finance has modified the support program for self-employed people who can get a subsidy of 25 000 CZK to compensate their losses caused by the restrictions related to the country’s fight with the coronavirus pandemic. Find out more about the basic requirements and application steps in this article so you know if you are entitled to the contribution!
Entitlement to the contribution
Trade licence holders, who have a residence permit in the Czech Republic are eligible to apply for the compensation bonus of 25 000 CZK. This amount is a one-time payment, 500 CZK for each day when all the requirements are met. If the person does not meet any of the eligibility, the bonus will be reduced accordingly.
A typical applicant is a self-employed person who does entrepreneurship as the main working activity. Those who do entrepreneurship as their secondary working activity are also eligible in case they are not employed at the same time.
Self-employed students up to 26 years of age, self-employed disabled people and old-aged pensioners will be able to apply for the contribution as well. In addition, coworkers and spouses will be entitled to compensation if they are not employed at the moment. The contribution will not be subject to taxation.
What are the main requirements?
- Self-employment was active on March 12, 2020. Alternatively, it can also be self-employment of the person whose activity was interrupted at any time after 31 August 2019 (seasonal business)
- The self-employed person (trade licence holder) will declare that they were unable to perform their work activity partly or totally due to the health threats associated with the occurrence of coronavirus or government emergency measures (in particular, for reasons such as the need to close the working space, self-quarantine of the self-employer or his employees, childcare, demanded decrease for products or services provided by a self-employed person or restriction or termination of supplies or services necessary for the performance of activities)
- The applicant shall prove the fulfillment of these facts by a declaration on honor.
How to apply
To apply for the contribution, you need to fill out this application form. A one-page application includes information on the eligibility criteria for the bonus and bank account number. Applications can be sent by email, post, data mailboxes or through the Electronic Submission for Financial Administration (EPO) application.
It is important to note that the application form is optimized exclusively for Microsoft Windows 7 and more upgraded versions. You can fill out the form through IOS, Android or other operating systems following the below-described steps:
- Download the program Acrobat Reader 9.1 or more upgraded version (you can find it here). It will take a couple of minutes for the program to be downloaded, then you need to download the application form PDF file on your desktop and open it in the software.
- Next, you need to send the file to the Tax Office. You can send it electronically: paste the completed PDF application into your data box and send it to the data box of the tax office locally responsible for managing your income tax (find contacts here). Another option is sending your application via email: print the form, sign it, scan a copy and send it to the email address of your local Tax Office (see the contacts above). Write “Application for Compensation Bonus for Self-Employed” in the email subject.
There is also an online web app to fill in and then send it via data mailbox or email.
The Ministry of Finance assures that the contribution will be paid to you immediately after the application is processed. The amount will be sent to your account.
Do you want to apply for the compensation but not sure if you meet the requirements? Do you have a question or need assistance with the paperwork related? Let us know and we will help you out!
Do you know that trade licence holders are relieved from paying the social and health insurance contributions for half a year? Read more here.
Sources of the information used in this article:
https://www.forbes.cz/formular-n-25-tisic-pro-osvc-je-tu-takhle-ho-vyplnite-krok-za-krokem/
Image Source: Pexels
Hi, My name is Valeria.
I would like to ask you if it is still possible to apply for the contribution of the Self-employers and Trade license holders.
I’m Italian citizen, and I have here the Temporary residence certificate.
Thank you in advance for your answer.
Hi Valeria,
as far as I know, it should be still possible. To get more details on this topic, contact my colleagues at info@foreigners.cz, or schedule a consultation. Hope this helps 🙂
Kind regards,
Anna
Dear Anna, I am Managing Director of a s.r.o company which I started in Brno last year in May. Due to covid19, I had to close down by shop and return back to my place of residence in Dubai. I was holding short term business visa which expired in July 2020. Can you pls advice if Iam entitled for compensation bonus? Thanks.
Hi Chandrasen,
as far as I know, you should be entitled to the compensation bonus. However, you can only apply until October.
Kind regards,
Anna