CORONAVIRUS: Legal implications for businesses in the Czech Republic

Additional support from the Ministry of Finance and Tax Authorities is planned for self-employed persons (sole proprietors) whose business has been adversely affected in connection with the spread of the coronavirus. Who is the support for? What form will it take? What do you need to be eligible? The answers are in the article below.

Currently, when measures are being taken due to the coronavirus epidemic, a number of questions arise regarding the payment of social security and health insurance premiums. In addition, self-employed persons are resolving, for example, how the permitted late filing of income tax returns will affect the deadline for submitting an overview of income and expenditure for 2019 and the payment of insurance premium supplements and other advance payments.

Are you considering how to maintain employment of your employees and minimize economic losses? Take a look at what financial instruments the state has prepared for entrepreneurs whose employees have been affected, directly or indirectly, by government measures taken to combat coronavirus.

The government has approved additional tax measures designed by the Ministry of Finance to help taxpayers overcome the current situation caused by the spread of the coronavirus. The new tax measures were officially published on 31 March 2020 in the Financial Newsletter. What do they relate to?

General questions with respect to the impact of extraordinary measures on contractual relations have been mentioned HERE, in relation to financing contracts there are certain specifics, the basic outline of which is set forth in this note. In addition to arrangements between suppliers and customers, financing contracts are another cornerstone of any business and private life, so due attention should be paid to them in times of emergency measures so that the particular entities have not lost access to financing of their business and other activities.

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?

While stock exchanges worldwide have experienced dramatic downturns and the economy is apparently heading for a global recession, supervisory organs are taking measures to respond to the situation by means of financial market regulation. In this regard, we consider the most important measure so far to be the shifting of financial reporting deadlines by the European Securities and Markets Authority (ESMA), however also significant are the recommendations of ESMA and the European Banking Authority (EBA) on the impact of the coronavirus epidemic on accounting, respectively its impact on the qualification of financial instruments, which is an issue that issuers of securities admitted to trading on regulated markets (as well as financial institutions) will have to deal with in preparing annual reports.

Aid for self-employed persons ('self-employed') and small and medium-sized enterprises ('SMEs') affected by anti-coronavirus measures pursuant to the Czech Government’s  'COVID GUARANTEE' programme was exhausted in one day. On Monday, March 30, 2020, the terms and conditions of the follow-up COVID II program will be published, in which CZK 5 billion should be available. The rush of applications is expected, so action needs to be taken quickly and not delayed. 

As of April 1, 2020, self-employed persons (“self-employed persons”) can file applications for so-called carer allowance benefits at the Trade Licensing Office in the amount of CZK 424 per day. However, it is not a special social benefit, as initially envisaged, but a State aid in the form of a grant with a stricter regime. Below is a brief overview of the conditions for obtaining this form of assistance.

VAT payers, who have monthly obligations, may no longer be oriented in the flood of newly adopted tax measures to help taxpayers to overcome the current situation caused by the spread of the coronavirus. For this reason, we provide a brief overview of the tax measures specifically related to VAT and add some important remarks that should be kept in mind.

Currently, when measures are being taken due to the coronavirus epidemic, a number of questions arise regarding the payment of social security and health insurance premiums. In addition, self-employed persons are resolving, for example, how the permitted late filing of income tax returns will affect the deadline for submitting an overview of income and expenditure for 2019 and the payment of insurance premium supplements and other advance payments.

The set of several emergency measures of the Ministry of Health dated 23 March 2020 banned the retail sale of goods and services, banned the public presence at selected premises or selected times, prohibited the operation of certain premises, prohibited the free movement of persons or restricted the activities of public authorities and administrative bodies.

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?

On our blog, we have already reported on the mitigating tax measures approved by the government in relation to the current situation caused by the spread of coronavirus. The Ministry of Finance has now prepared further measures, which also relate to obligations to pay advances for income tax. So what are the options and obligations in the area of advance payments now? What if the taxpayer expects a tax overpayment? The comments below concern mainly taxpayers who are subject to the end of the deadline for filing income tax returns on April 1, 2020.

The set of several emergency measures of the Ministry of Health dated 23 March 2020 banned the retail sale of goods and services, banned the public presence at selected premises or selected times, prohibited the operation of certain premises, prohibited the free movement of persons or restricted the activities of public authorities and administrative bodies. Take a look at their list, the vast majority of which were already based on previous emergency or emergency measures.