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Coronadvice 10 - Possibilities of Financial Support For Small and Medium sized Enterprises at the Time of Coronavirus - Overview to 25.3.2020
We closely monitor state and other support measures available to SMEs. We also communicate with the Ministry of Industry and Trade to have the most up-to-date information for you. Below is an overview of the various "packages" available to help entrepreneurs:
ANTIVIRUS PROGRAM
As a result of the coronavirus pandemic, the government has approved an employment protection program through which the Czech Labour Office can pay money to companies to prevent them from having to lay off employees. Employers whose activities will be jeopardized by the spread of the disease will be provided with a full or partial wage compensation contribution by the labour office. This applies both in the event of an obstacle on the side of the employee (quarantine order), or an obstacle on the side of the employer (closure of the establishment as a result of a government order). In order to receive a contribution, it must be shown that the obstacles have arisen as a result of the COVID-19 pandemic. You can read more about Antivirus here. You will find out which item of this program will be directly related to tour operators in the next Coronadvice probably tomorrow.
COVID II
The Czech-Moravian Guarantee and Development Bank (CMZRB) will provide entrepreneurs with guarantees for commercial bank loans, and contribute to interest payments. This program should most likely be adjusted so that CMZRB will guarantee loans from CZK 10 thousand up to CZK 15 million. The guarantee is likely to be up to 80% of the commercial loan. The applicant will be able to use a financial contribution of up to CZK 1 million to make interest payments. Expected period of liability will be 3 years. The loan can be used for operating expenses such as wages, rent, energy, supplier-customer invoices, materials, supplies, etc. Learn more about COVID II here.
PLAN TO HELP TRADESMEN
On 20 March 2020, a draft law on the waiver of compulsory pension payments for self-employed persons for 6 months was sent to the interdepartmental comment procedure; on 24 March 2020, this law was confirmed by Parliament. You can read the press release here.
MINISTRY OF FINANCE LIBERALISATION PACKAGE
The Ministry of Finance has prepared a liberalisation package for taxpayers affected by the current situation, bringing the postponement of the personal and corporate income tax return to 1.7.2020. They individually waive fines for the delay in filing all taxes, if the entity proves the reasons related to coronavirus. The Liberalisation Package also postpones the effectiveness of the final phase of the EET until August 1, 2020. During this time, the Financial and Customs Administration will be tolerant and will serve only an advisory function. You can find a guide for taxpayers of tax administration here.
SUPPORT FOR SMALL AND MEDIUM-SIZED ENTERPRISES FROM THE EU
SMEs will receive a total of € 1 billion from the EU budget as a guarantee for the European Investment Fund. Following the relaxation of state aid rules, states could provide aid to companies affected by coronavirus of up to half a million euros (CZK 13.5 million). The Commission has also earmarked 164 million euros to support small and start-up companies who will come up with projects to fight the virus. Find out more about EU support here.
We will continue to monitor the information. If you have any questions or if you find other support options, please let us know at info@holubova.cz. We are also ready to provide up-to-date information from neighbouring countries.
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Jasper Brinkman
Jasper Brinkman
"Following a devastating hotel fire in Prague, the law firm Holubová advokáti, led by attorney Klara Dvorakova, successfully represented our extended family as a group of victims. The firm navigated complex international insurance and compensation laws to defend our rights.
I would like to acknowledge the extraordinary efforts the firm had to make to bring our case to a successful compensation under extremely difficult circumstances."
Stewarts
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."