At the end of February 2021, the legislation on the compensatory bonus for the year 2021 came into force. From February 2021 onwards, self-employed persons, partners of small Ltd. companies (s.r.o.), and some employees on “work-agreements” may ask for compensatory bonus under the new regime. Some employees that were not entitled to claim the compensation bonus under the old regime may now be entitled, and on the other hand, some employees who earlier entitled to a compensation bonus may no longer be entitled to it.
The new compensation bonus is based on the decrease in income for a certain period, i.e., the comparison period. Under the new law, entrepreneurs need not prove that they are doing business in activities or sectors directly prohibited or restricted by crisis measures, or that their business is connected to these activities. In the future, it should not be the case that tax officials inform entrepreneurs that their activities have not been banned and it is only that their customers have not been able to enjoy their services, as has been the case with some guides, travel agencies, and tour operators. As lawyers, we welcome this approach. Indeed, in relation to the old compensatory bonus, there was often no choice other than to oppose the rejection decisions of tax offices by bringing an action before court.
Entrepreneurs must now prove a 50% or higher decrease in income during the comparison period. The comparison period can be chosen by the entrepreneurs and should be done after careful consideration to ensure that the difference in income is actually at least slightly more than 50%. Increase of the compensation bonus from CZK 500 CZK to 1,000 CZK per day is also a positive step. Further, entrepreneurs can receive a compensation bonus for February 2021 even if they had previously applied for the old compensation bonus for the same period.
As the new compensation bonus regulations bring many questions, we have.