COVID program - RENT
The state contribution for commercial rents to entrepreneurs with forcibly closed establishments is gaining more concrete outlines. If an entrepreneur negotiates a 30% discount on rent from his landlord, he will be able to apply for state support in the amount of 50% up to a ceiling of CZK 10 million for the period from April to June. However, the program has yet to be notified to the European Commission before it can be launched.
The Ministry of Finance proposes the abolition of real estate acquisition tax UPDATE03
At its meeting on April 30, 2020, the government approved the abolition of the 4% real estate acquisition tax and related changes in the Income Tax Act. The content of the proposal of the Ministry of Finance is described below. However, there are likely to be some adjustments to this wording as a result of the coalition agreement. According to the media, the change should concern the maintenance of the tax deduction of interest on real estate acquired until the end of 2021. The time test for the exemption of income from the sale of real estate should be extended to 10 years (compared to the originally proposed 15 years).
The Ministry of Finance proposes the abolition of real estate acquisition tax UPDATE02
At its meeting on April 30, 2020, the government approved a proposal by the Ministry of Finance to abolish the 4% tax on the acquisition of real estate. Compared to the original wording, certain adjustments have been made in order to reach a coalition agreement.
Price moratorium on rent from apartments - rents cannot be increased!
On 24 April 2020, a moratorium on rental prices of apartments, issued by the Ministry of Finance (“MF”) came into force, which was adopted in the form of Government Decree No. 202/2020 Coll. This is a protective measure for tenants, which stipulates that the rent for an apartment cannot be increased for a limited period of time. This price moratorium is related also to Act No. 209/2020 Coll., which protects tenants from termination.
The Ministry of Finance proposes abolishing the real estate acquisition tax
The Ministry of Finance proposes the abolition of a 4% real estate acquisition tax. The proposal will be discussed on Friday 17 April by the Coalition Council of the Government and the National Economic Council of the Government (NECG).
Rental of non-residential premises: the government proposes freezing the possibility to give notice for non-payment
The government approved the wording of a legislative bill on certain measures to mitigate the effects of the SARS-CoV-2 coronavirus epidemic on lessees of business premises. The proposal will be discussed at the 44th session of the Chamber of Deputies of the Parliament of the Czech Republic, which will be held on 7 April 2020.
Impact of Coronavirus on Landlords
Like other taxpayers, landlords are currently exposed to various economic pressures. On one hand, they have to cover the expenses related to their property, but on the other hand they often do not receive rent from tenants who have had to restrict their operations because of the government measures against the coronavirus. What should landlords keep in mind in this situation?
Tax relief will be extended. Ministry of Finance has prepared a second liberalization package
In addition to the already approved liberalization package, which we have already reported in detail in recent days, the Ministry of Finance has prepared further measures to help taxpayers bridge the emergency caused by the current situation caused by the spread of coronavirus. What is the content of the second liberalization package?