Covid-19 - Summary of Measures

CZECH REPUBLIC

First of all let me inform you that pace of change containing government measures in the Czech Republic has been fast-moving since the Czech government has declared a state of emergency by 12th March 2020; it is planned to be in place until 17th May 2020.

Nevertheless, the Czech government gradually releases respective measures step by step (e.g. some business activities or public places and sports grounds – all of these under the specific conditions and restrictions). These are, however, conditioned by the epidemic development, which is hardly predictable, i.e. the situation might change.

In order to mitigate the pandemic effect, the government of the Czech Republic granted some programs / financial entitlement / waivers. Below you find an overview of the tax and other measures and programs which are currently in force.

Financial entitlement / guarantee:

• labour law area:
  • partial compensation of total wage costs in the form of reimbursements of wages to which employees are entitled as long as obstacles to work brought about the quarantine, emergency measures, crisis-related measures related to the COVID19 outbreak and accompanying economic difficulties of employers exist;
  • entitlement to nursing allowance due to school facility closure (changes related to the current situation);
• self-employed persons:
  • compensation bonus;
  • entitlement to nursing allowance due to school facility closure (changes related to the current situation);
• bank loan guarantee for SME.

VAT measures:

• waiver of the fine for the late submission of the VAT Declaration and VAT Control Statement (under the specific conditions);
• VAT and duty exemption related to the importation of the medical equipment (under the specific conditions);
• waiver of VAT related to the free of charge supply of the specific goods (COVID 19 related).

Corporate Income Tax / Personal Income Tax measures:

• waiver of the fines for the late submission of the CIT / PIT Declaration and for the late payment of the tax (under the specific conditions);
• waiver of the June 2020 tax advance payment (under the specific conditions).

Others:

• deferment of the loan repayments (for the respective period of time and under the specific conditions);
• adjustments related to the late rent payment (for the respective period of time and under the specific conditions).

Since the current situation is hardly predictable and a lot of government measures and programs vary over time, we enclosed only a general overview. In case of your interest we will provide you with the more detailed information, which, however, might not be the final one.

If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Monika Ruprechtova at ruprechtova@edmutilitas.cz.