Act No. 159 / 2020 Coll.
Law on compensation bonus in connection with crisis measures related to the occurrence of SARS CoV-2 coronavirus
Valid
Law
Effective from 15.04.2020
Contents
159
THE LAW
of 9 April 2020
on the compensation bonus for emergency measures related to the occurrence of SARS CoV-2
Parliament has decided on this law of the Czech Republic:
INTRODUCTORY PROVISIONS
Subject matter
This Act provides for a tax bonus to compensate for certain economic consequences related to health risks in relation to the demonstration of the occurrence of coronavirus known as SARS CoV-2 or to crisis measures taken for that threat ("compensation bonus') and specific measures to mitigate the effects of this act on the budgets of municipalities, including the capital city of Prague.
COMPENSATION BONUS
Compensation bonus for self-employed persons
(1) The compensation bonus is the subject of a self-employed person under the pension insurance law. The person referred to in the first sentence shall not be subject to a compensation bonus in respect of the person carrying out the activity resulting in the person participating in the sickness insurance as an employee; However, this shall not apply if:
(a) the pursuit of a teaching profession;
(b) the activities in respect of which the participation in sickness insurance arises only for the reasons set out in Article 5 (a) (12) and (13) of the sickness insurance law;
(c) the work is carried out under an agreement on work outside the employment relationship establishing participation in sickness insurance.
(2) Only those who, at 12 March 2020, were eligible for the compensation bonus
(a) by the person referred to in paragraph 1; or
(b) by a person whose self-employment is suspended from the date following 31 August 2019.
Compensation bonus for a limited liability company member
(1) The subject of the compensation bonus is also a natural person who is a member of a limited liability company established for the purpose of making a profit that has:
(a) a maximum of two members, those members being natural persons and their share not being represented by a tribal list; or
(b) only members of the same family and their share is not represented by a tribal list.
(2) Only those who:
(a) fulfil the conditions laid down in paragraph 1 on 12 March 2020;
(b) does not carry out an activity resulting in sickness insurance being employed, except:
1. employment in a limited liability company which is a member,
2. pedagogical employment;
3. activities involving participation in sickness insurance only for the reasons set out in Sections 5 (a) (12) and 13 of the sickness insurance law;
4. the performance of work under an agreement on work outside the employment relationship establishing participation in sickness insurance,
(c) on 12 March 2020:
1. resident of the Czech Republic, or
2. non-resident of the Czech Republic, which assumes that it will meet all the conditions for applying the tax reduction for the tax period of 2020 pursuant to Section 35ba (2) of the Income Tax Act.
(3) The compensation bonus referred to in paragraph 1 may not be a limited liability company member who, during the bonus period:
(a) has been in bankruptcy or liquidation; or
(b) has been an unreliable payer or an unreliable person under the Value Added Tax Act.
(4) The compensation bonus provided for in paragraph 1 cannot be the subject of a limited liability company's shareholder,
(a) whose turnover under Section 1d (2) of the Accounting Act for the completed tax period of corporate income tax immediately preceding the bonus period did not exceed CZK 180,000 or which assumes that its turnover under Section 1d (2) of the Accounting Act for the first outstanding corporate income tax period over which this company operates does not exceed CZK 180,000,
(b) which was not a tax resident on 12 March 2020
1. The Czech Republic, or
2. another Member State of the European Union or the European Economic Area and has not achieved most of its income for the relevant period referred to in point (a) from sources within the Czech Republic.
(5) Where a natural person is a member of several limited liability companies, compliance with the conditions laid down in paragraphs 1 to 4 shall be assessed in relation to each limited liability company separately.
Compensation bonus entity in the case of a person performing a job under an off-job agreement
(1) The subject of the compensation bonus is also the person who:
(a) carry out work during the relevant period on the basis of a work agreement outside the employment relationship and, as a result, have taken part in sickness insurance for at least 4 calendar months as an employee and have not carried out any other activity which would result in her participating in sickness insurance as an employee;
(b) in addition to carrying out work under an outside-employment agreement, he shall not carry out any other activity in which he is a member of sickness insurance as an employee, except in the case of an activity where participation in sickness insurance arises only for the reasons set out in points (a) (12) and (13) of Section 5 of the sickness insurance law.
(2) The period referred to in paragraph 1 (a) shall be from 1 October 2019 to 31 March 2020.
Common provisions
(1) The compensation bonus entity is a tax entity.
(2) For the purposes of this Act, an employee is defined as an employee under the sickness insurance law.
(3) For the purposes of this Act, members of a single family are related in a series of direct, sibling and husband or partner under the law governing a registered partnership.
(4) For the purposes of this Act, an agreement on work outside employment shall mean an agreement on the performance of work or an agreement on work under the Labour Code.
Subject of the compensation bonus
(1) The subject of the compensation bonus shall be the pursuit of a self-employment activity or the pursuit of the activity of a limited liability company which is a member of the compensation bonus entity in the calendar month in which the day for which the compensation bonus is granted, provided that such activity could not be carried out in whole or in part above the normal level due to the health or emergency measures referred to in Article 1, in particular because of:
(a) the need to close or restrict the operation of the establishment of the compensation bonus entity or the establishment of a limited liability company;
(b) the quarantine of the compensation bonus entity or its staff member;
(c) childcare in the case of a compensation bonus entity or an obstacle to the work of childcare in the case of its staff member;
(d) limiting the demand for products, services or other self-employed activities of the compensation bonus entity or a limited liability company; or
(e) the restriction or termination of supplies or services necessary for the pursuit of the self-employed activity of the compensation bonus entity or a limited liability company.
(2) The compensation bonus is a deductible income for determining entitlement to benefits paid under the law governing assistance in material distress and the law governing State social aid.
(3) A compensation bonus is not eligible for:
(a) unemployment benefit under the Employment Act for the calendar day for which it received the compensation bonus;
(b) compensation bonus for the calendar day for which he received unemployment benefit under the Employment Act;
(c) the compensation bonus provided for in Article 2a per calendar day for which a limited liability company which is a member has received, by reason of the employment of that member, aid granted to employers in connection with health threats or crisis measures under Article 1.
(4) A compensation bonus is eligible for a compensation bonus on a calendar day only
(a) pursuant to Article 2 or Article 2a;
(b) once if he is a member of several limited liability companies.
Subject of compensation bonus in the case of a person performing a job under an off-job agreement
(1) The subject of the compensation bonus shall also be the performance of work on the basis of a work agreement outside the employment relationship establishing participation in sickness insurance in the calendar month on which the day for which the compensation bonus is granted, provided that the work could not be carried out in whole or in part to the normal extent for reasons on the part of the
(a) employers who have occurred as a result of health threats or emergency measures under Article 1, in particular as a result of:
1. the need to close or restrict the operation of the establishment;
2. limiting demand for products, services or other outputs; or
3. the restriction or termination of supplies or services necessary for the performance of the activity; or
(b) the compensation bonus which has occurred as a result of the health or emergency measures referred to in Article 1, in particular as a result of:
1. its quarantine; or
2. care for a child or another member of the household.
(2) The compensation bonus is a deductible income for determining entitlement to benefits paid under the law governing assistance in material distress and the law governing State social aid.
(3) A compensation bonus is not eligible for:
(a) unemployment benefit under the Employment Act for the calendar day for which it received the compensation bonus;
(b) the compensation bonus for the calendar day for which he received:
1. unemployment benefit under the Employment Act; or
2. the compensation bonus provided for in § 2 or 2a.
(4) A compensation bonus body may be entitled to a compensation bonus only once per calendar day if it carries out an activity under more than one off-job agreement.
(5) The employer referred to in paragraph 1 shall mean the employer with whom the entity has a compensation bonus
(a) in the relevant period, an agreement concluded on work outside the employment relationship and which has settled for him the deductible income of the amount of participation in sickness insurance; and
(b) on 11 March 2020, a non-employment agreement.
Amount of the compensation bonus
(1) The amount of the compensation bonus is CZK 500 for each calendar day of the bonus period.
(2) The compensation bonus according to § 2aa is CZK 350 for each calendar day of the bonus period.
Bonus period
(1) The first bonus period is the period from 12 March to 30 April 2020.
(2) The second bonus period shall be from 1 May to 8 June 2020.
(3) The third bonus period is the period that the government may provide for by regulation within the period from 9 June to 31 August 2020, for days on which the crisis measures referred to in Article 1 continue to restrict, in whole or in part, the pursuit of a self-employed activity or the pursuit of the activity of a limited liability company.
MANAGEMENT OF THE COMPENSATION BONUS
Management and manager of the compensation bonus
(1) The compensation bonus is managed as a tax under the tax rules.
(2) The compensation bonus is a refund of income tax on individuals from dependent activities.
(3) The administrator of the compensation bonus shall be the tax office responsible locally for managing the income tax of the tax entity that submitted the application for the compensation bonus (hereinafter referred to as the "bonus manager ').
Application for compensation bonus
(1) The compensation bonus is calculated on the basis of an application for a compensation bonus, which, in addition to the general requirements of the submission, also includes:
(a) a declaration of honour certifying compliance with the conditions for entitlement to the compensation bonus;
(b) the account with the payment service provider in the Czech currency for which the compensation bonus is to be paid;
(c) the identification of the limited liability company whose activity is subject to a compensation bonus.
(2) An application for a compensation bonus is submitted for the bonus period.
(3) An application for a compensation bonus may be submitted no later than 60 days after the end of the bonus period. If this request is not made within that period, the entitlement to the compensation bonus shall cease.
(4) Confirmation of the submission pursuant to Paragraph 71 (3) of the Tax Code may also be made in the case of a request for a compensation bonus by means of an electronic copy of a document bearing the signature of the signature, sent to the electronic address published by the bonus manager.
(5) Where an application for a compensation bonus is made in the form of an electronic copy of a document bearing a handwritten signature, it shall be deemed to be confirmed in accordance with Article 71 (3) of the Tax Code.
Application for a compensation bonus in the case of a person acting under an outside-employment agreement
(1) The application for a compensation bonus under § 2aa contains, in addition to the requirements under § 7, also:
(a) the identification of the employer where the reasons referred to in Article 3a (1) (a) have arisen on his part;
(b) a copy of the non-employment agreement referred to in Article 2aa (1) (a);
(c) a copy of the wage note covering the calendar month in which the compensation bonus has been paid by the sickness insurance provider under a work agreement outside the employment relationship referred to in point (b) during the relevant period under § 2aa (2).
(2) A copy of the wage note referred to in paragraph 1 (c) may be replaced by a certificate from the employer showing compliance with the conditions laid down in § 2aa (1) (a).
Determination of the compensation bonus
(1) The compensation bonus is fixed for the bonus period.
(2) The compensation bonus shall be deemed to be determined by the date on which the application for the compensation bonus was submitted, at the amount corresponding to the product of the amount of the compensation bonus and the number of days of the bonus period.
(3) If the bonus manager finds that the conditions for entitlement to the compensatory bonus have not been met and the compensation bonus has not been set at the correct amount, he shall measure the tax equal to the difference between the compensation bonus calculated and the amounts newly established.
(4) Within the period referred to in Article 7 (3), the application for a compensatory bonus may be amended. If the change of the application occurs before the compensation bonus to be calculated is prescribed in the tax records, the administrator of the bonus shall take into account the change within the framework of this prescription. If there is a later change in the application, the bonus manager may measure the tax or compensation bonus.
(5) There is no obligation to pay periodic penalty payments on the amount of the tax to be measured.
Payment of the compensation bonus
(1) The compensation bonus calculated by the administrator shall be prescribed in the tax records. The compensation bonus shall be registered in a separate personal tax account of the tax entity.
(2) The excess due to the payment of the compensation bonus is a refundable overpayment and shall be returned to the tax entity without undue delay from the date on which the compensation bonus is calculated; interest on refundable overpayment in the event of a compensatory bonus shall not arise.
(3) Repayment of the excess payment referred to in paragraph 2 shall be effected without cash to the account of the payment service provider in the Czech currency indicated in the application for compensation bonus.
(4) The compensation bonus is not subject to enforcement or execution.
(5) The payment service provider may pay funds corresponding to the compensation bonus paid to the debtor, regardless of whether enforcement of the decision or execution is conducted by ordering a claim from an account with the payment service provider. It shall notify that payment to the competent authority carrying out the enforcement or execution.
INDIVIDUAL MEASURES DETERMINING THE IMPACT OF THIS BUSINESS IN THE BUDGET OF CITIZENS INCLUDING THE MAIN CITY OF PRAN
Non-refundable single contribution
In order to mitigate the negative effects of this law on the budgets of the municipalities, including the capital of Prague ("the municipality '), a one-off non-refundable contribution from the state budget (" the contribution') is introduced.
Amount of the contribution
(1) The amount of the allowance is the product of the amount of CZK 1 250 and the population of the municipality according to the balance sheet of the inhabitants of the Czech Republic processed by the Czech Statistical Office on 1 January 2020.
(2) The contribution is not earmarked and is not subject to State budget management.
Common provisions for the contribution
(1) The contribution will be provided by the Ministry of Finance from the chapter General Treasury Administration of the State Budget through the county in whose administrative district the municipality is located (hereinafter referred to as the "Region").
(2) The contribution will refer to the Ministry of Finance within 60 calendar days of the entry into force of this Act.
(3) The Region transfers the contribution to the municipality within 5 working days to its account held with the Czech National Bank by the State Treasury pursuant to Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended.
FINAL PROVISIONS
Specific provisions on income tax exemption
In 2020, the income from the subsidy under the subsidy programme of the Ministry of Industry and Trade "SUCCESSFUL 'FOR the self-employed is exempt from the income tax.
EFFECTIVE
This Act shall take effect on the day following its publication.
Vondracek v. r.
Zeman v. r.
Babiš v. r.
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Regulation Information
| Citation | Act No. 159 / 2020 Coll., on Compensation Bonus in relation to Crisis Measures related to Coronavirus SARS CoV-2 |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 14.04.2020 |
|---|---|
| Effective from | 15.04.2020 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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