Act No. 461 / 2020 Coll.
Law on Compensation Bonus in connection with the prohibition or restriction of business in connection with the occurrence of SARS CoV-2 Coronavirus
Valid
Law
Effective from 14.11.2020
461
THE LAW
of 10 November 2020
on the compensation bonus in connection with the prohibition or restriction of business in connection with the occurrence of SARS CoV-2 coronavirus
Parliament has decided on this law of the Czech Republic:
INTRODUCTORY PROVISIONS
Subject matter
(1) This Act provides for a tax bonus to compensate for certain economic consequences directly linked to the restriction or prohibition of business as a result of measures taken by the public authorities to protect the population and to prevent the risk of the emergence and spread of COVID-19 disease caused by a coronavirus known as SARS CoV-2 ("the compensation bonus').
(2) For the purposes of this Act, a measure adopted by another public authority or an authorised person to protect the population and to prevent the risk of the emergence and spread of COVID-19 disease caused by a coronavirus known as SARS CoV-2 shall also be considered to be a measure for the purposes of this Act, provided that such measure constitutes a prohibition or restriction on the operation or operation of the facilities in which health and social services are provided by their provider.
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.
(2) The compensation bonus may only be the subject of one of the following:
(a) by the person referred to in paragraph 1; or
(b) by a person whose self-employment is suspended from the date following 12 March 2020.
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 2 members who are natural persons and whose share is not represented by a list; or
(b) only associates who are members of the same family and whose share is not represented by a tribal list.
(2) Only those who:
(a) fulfil the conditions laid down in paragraph 1 on 5 October 2020;
(b) on 5 October 2020:
1. resident of the Czech Republic, or
2. a non-resident of the Czech Republic, who assumes that he will meet all the conditions for applying the tax reduction for the tax period covered by the relevant bonus period under 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 tax period of corporate income tax, for which the company operates, does not exceed CZK 120,000,
(b) which was not a tax resident of the Czech Republic or of another Member State of the European Union or of the European Economic Area on 5 October 2020.
(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 compensation bonus is also the subject of a person who, during the relevant period, worked under a work agreement outside the employment relationship and, as a result, was, for at least 3 calendar months, involved in sickness insurance as an employee and did not carry out any other activity which would result in her being involved in sickness insurance as an employee; This does not apply in respect of activities for which participation in sickness insurance arises only for the reasons set out in Sections 5 (a) (12) and 13 of the sickness insurance law.
(2) 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.
(3) For the purposes of this Act, an employee is defined as an employee under the sickness insurance law.
Common provisions for compensation bonus entity
(1) The compensation bonus entity is a tax entity.
(2) The compensation bonus cannot be the subject of a person who, during the bonus period, was an unreliable payer or an unreliable person under the Value Added Tax Act.
(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) The period shall be from 1 June 2020 to 30 September 2020.
Subject of the compensation bonus
(1) The subject of the compensatory bonus shall be the pursuit of a self-employed activity or the pursuit of the activity of a limited liability company which is a member of the compensation bonus entity on the calendar day on which that activity was immediately prohibited or limited by the measure referred to in Article 1.
(2) The subject of the compensation bonus shall also 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 on the calendar day on which that activity was at least 80% excluded as a result of an immediate prohibition or restriction of the measures referred to in Article 1 relating to:
(a) the customer of goods, services or other outputs of the compensation bonus entity, unless the activity of the compensation bonus entity, the output of which may be provided to another customer without significant difficulty, is concerned; or
(b) the person in whose premises the activity of the compensation bonus entity is carried out unless the activity of the compensation bonus entity is carried out, which may be carried out elsewhere without significant difficulty.
(3) The subject of a compensation bonus in the case of a compensation bonus entity pursuant to Article 2 shall be the exercise of the activity referred to in paragraph 1 or 2 only if the body for which the predominant part of the income was directly derived from one or more of those activities during the relevant period; taking into account only revenue pursuant to Sections 6, 7 and 9 of the Income Tax Act.
(4) The subject of a compensation bonus in the case of a compensation bonus under Section 3 shall be the exercise of the activity referred to in paragraph 1 or 2 only if:
(a) a limited liability company for which the predominant part of the income was directly derived from one or more of those activities during the relevant period;
(b) an entity for which the predominant part of the income was directly derived from one or more of the activities of the company referred to in (a) during the relevant period; taking into account only income corresponding to the share of the shareholder in the company and income pursuant to Sections 6, 7 and 9 of the Income Tax Act.
(5) In order to fulfil the conditions laid down in paragraphs 3 and 4, the predominant part of the added value resulting from the activity may be taken into account instead of the predominant part of the revenue.
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 is also the performance of work on the basis of a work agreement outside the employment relationship establishing a 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 for reasons on the part of the employer arising from the immediate prohibition or restriction of his activity by the measures provided for in Article 1.
(2) The compensation bonus in the case of a compensation bonus entity pursuant to Article 4 shall be subject to the performance of the work referred to in paragraph 1 only in the case of an entity for which the predominant part of the income was generated by the employer in the relevant period under paragraph 1, taking into account only the revenue referred to in paragraphs 6, 7 and 9 of the Income Tax Act.
(3) In order to fulfil the condition laid down in paragraph 2, the predominant part of the added value resulting from the activity may be taken into account instead of the predominant part of the revenue.
(4) 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 5 October 2020, a non-employment agreement.
Elimination of entitlement to compensation bonus
(1) 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 for the calendar day for which it received aid in relation to the mitigation of the consequences of the occurrence of coronavirus known as SARS CoV-2 in the Czech Republic or in one of the Member States of the European Union or the European Economic Area, with the exception of:
1. aid to cover rent,
2. aid granted to employers;
3. aid granted in the form of a grant under the subsidy programme of the Ministry of Industry and Trade "SUCCESSFUL" FOR THE SAFETY.
(d) the compensation bonus provided for in Article 3 per calendar day for which the limited liability company is a member has received
1. in the Czech Republic or in one of the Member States of the European Union or the European Economic Area, aid for a similar compensation bonus;
2. because of the employment of this partner, the aid granted to employers in order to mitigate certain economic consequences of the emergence and spread of COVID-19 disease caused by a coronavirus known as SARS CoV-2.
(2) A compensation bonus may be eligible for a compensation bonus on a calendar day only
(a) pursuant to § 2, 3 or 4,
(b) once if he is a member of several limited liability companies,
(c) one regardless of the number of activities referred to in Article 6 (1) or (2);
(d) once in the case of an activity under more than one non-employment agreement.
(3) 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.
Amount of the compensation bonus
The compensation bonus amount is CZK 500 for each calendar day of the bonus period.
Bonus period
(1) The first bonus period is the period from 5 October to 4 November 2020.
(2) If there is an extension of the duration of the emergency period within the current bonus period, the next bonus period shall be the period corresponding to the extension period.
(3) The condition for entitlement to the compensation bonus for the last calendar day of the bonus period linked to the measure referred to in Article 1 shall also be deemed to be fulfilled if it is met for the preceding calendar day.
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 has applied for the compensation bonus (hereinafter referred to as the "bonus administrator ').
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 compensatory bonus;
(d) the determination of the activity referred to in Article 6 (1) or (2) or Article 7 (1) and the calendar days of the bonus period in which the activity was immediately prohibited or restricted by the measure referred to in Article 1.
(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 2 months 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 compensation bonus provided for in Article 4 contains, in addition to the requirements laid down in Article 12, also:
(a) the identification of the employer where the reasons referred to in Article 7 (1) have arisen on his part;
(b) a copy of the non-employment agreement referred to in Article 4 (1);
(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 an out-of-work agreement referred to in point (b) during the relevant period.
(2) A copy of the wage note referred to in paragraph 1 (c) may be replaced by a certificate from the employer proving compliance with the conditions laid down in Article 4 (1).
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) The request for a compensatory bonus may be amended within the time limit referred to in Article 12 (3). 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.
(6) The reduction of the duration of the prohibitions and restrictions under the measures provided for in Article 1 fixed-term measures which took place after the date of application for the compensatory bonus applicable to those prohibitions and restrictions shall not be taken into account when assessing the fulfilment of the conditions for entitlement to the compensatory bonus.
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.
FINAL PROVISIONS
Specific provisions on income tax exemption
In 2021, the income from the subsidy under the subsidy programme of the Ministry of Industry and Trade "SUCCESSFUL 'FOR the self-employed persons 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.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 461 / 2020 Coll., on Compensation Bonus in connection with the prohibition or restriction of business in connection with the occurrence of the Coronavirus SARS CoV-2 |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 13.11.2020 |
|---|---|
| Effective from | 14.11.2020 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0