Act No. 95 / 2021 Coll.
For the purposes of this Regulation, the following definitions apply:
Valid
Law
Effective from 27.02.2021
Text versions:
27.02.2021
26.02.2021
95
THE LAW
of 25 February 2021
on the compensation bonus for 2021
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 related to the emergence and spread of COVID-19 disease caused by a coronavirus known as SARS CoV-2 or crisis measures taken because of this threat ("the compensation bonus').
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) in bankruptcy or liquidation; or
(b) an unreliable payer or an unreliable person under the law governing value added tax.
(4) Furthermore, the compensation bonus provided for in paragraph 1 cannot be a limited liability company's shareholder,
(a) whose turnover under Section 1d (2) of the Accounting Act for none of the 2 completed corporate tax periods immediately preceding the bonus period does not exceed CZK 180,000, or which assumes that its turnover under Section 1d (2) of the Accounting Act for the first completed corporate income tax period over which the company operates, does not exceed CZK 120,000, and
(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 the case of activities where 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. The compensation bonus entity under Section 4 may use a period of 4 consecutive calendar months immediately preceding the bonus period to fulfil the conditions under this Act as the applicable period.
Subject of the compensation bonus
(1) The subject of the compensatory 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 period in which the day for which the compensation bonus is granted, where one or more of those activities have been significantly affected as a result of 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) quarantine or isolation under the Public Health Protection Act (hereinafter referred to as "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 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 only if the body for which the predominant part of the income was directly derived from one or more of those activities during the comparative period; taking into account only revenue pursuant to Sections 6, 7 and 9 of the Income Tax Act.
(3) The subject of a compensation bonus in the case of a compensation bonus subject to Article 3 shall be the exercise of the activity referred to in paragraph 1 only where:
(a) a limited liability company for which the predominant part of the income in the comparative period was directly derived from one or more of these activities; and
(b) an entity for which the predominant part of the income in the comparative period was directly derived from one or more of the activities of the company referred to in (a); 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.
(4) In order to fulfil the conditions laid down in paragraphs 2 and 3, the following may, instead:
(a) the predominant parts of the revenue shall take account of the predominant part of the added value resulting from the activity in question; and
(b) the reference period shall apply the relevant period.
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 a participation in sickness insurance during the bonus period, 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 which resulted from the employer being significantly affected as a result of the threat to health or emergency measures under § 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.
Common provisions for the subject of the compensation bonus
(1) The activity is considered to be significantly affected if the amount of revenue corresponding to the sales of products, goods and services resulting from the activity in question did not exceed 50% of the average monthly amount of such revenue resulting from the same activity in the period of comparison.
(2) The compared period is the calendar month immediately preceding the bonus period.
(3) The reference period shall be 3 consecutive calendar months in the period from 1 November 2018 to 31 December 2020, the names of which shall correspond to the names of 3 calendar months immediately preceding the bonus period. If more than one period is so determined, the comparison period is the one chosen by the compensation bonus entity.
(4) In the case where the compensation bonus subject under Section 2 has become self-employed under the Pension Insurance Act later than on the first day of the comparative period determined in accordance with paragraph 3, the comparative period shall be any period of 3 consecutive calendar months within the period of the first 8 calendar months during which he was that person.
(5) In the case where a limited liability company with a compensation bonus under Article 3 was created later than on the first day of the comparative period determined in accordance with paragraph 3, the comparison period shall be any period of 3 consecutive calendar months within the period of the first 6 calendar months during which that company existed.
(6) On the calendar day on which the ordered quarantine of the compensation bonus entity is maintained, which is the subject of sickness insurance, the following shall always be considered as significantly affected:
(a) the self-employed activity of that compensation bonus entity; and
(b) the activity of a limited liability company which that entity is a member of the compensatory bonus, for the sole purpose of establishing entitlement to the compensatory bonus of that member.
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 has received, in the Czech Republic or in one of the Member States of the European Union or in the European Economic Area, aid related to the mitigation of the consequences of the occurrence of coronavirus known as SARS CoV-2, with the exception of aid granted under the Antivirus programme or the substitutable programme, and aid for rent; and
(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 of the European Economic Area, aid related to the mitigation of the consequences of the occurrence of coronavirus known as SARS CoV-2, with the exception of aid granted under the Antivirus programme or the replacement programme, and aid for rent; or
2. on the basis of the employment of that partner, the aid granted under the Antivirus programme or the programme replacing it.
(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 significantly affected; and
(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
(1) The compensation bonus amount is CZK 1,000 for each calendar day of the bonus period.
(2) In the case of a compensation bonus entity under § 2 or 3, the amount of the compensation bonus for the bonus period shall not exceed the difference between the average monthly amount of revenue under § 8 (1) of all the significantly affected activities in the comparative period and the amount of revenue under § 8 (1) of all the significantly affected activities in the comparative period.
(3) In the case of a compensation bonus under Section 4, the compensation bonus is CZK 500 for each calendar day of the bonus period.
(4) In the case of a compensation bonus under § 2 and 3, the compensation bonus shall be CZK 500 for each calendar day of the bonus period for which the compensation bonus is provided only because of the significant concern of the activity under § 8 (6).
Bonus period
(1) The bonus period is the calendar month from 1 February 2021 to 31 March 2021.
(2) The Government may, as a further bonus period, fix a calendar month in the period from 1 April 2021 to 31 December 2021 for the calendar month in which the duration of the crisis measures referred to in Article 1 may be envisaged.
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 compensatory bonus;
(d) the identification of one or more activities pursuant to Article 6 (1) or Article 7 (1);
(e) the average monthly amount of revenue referred to in Article 8 (1) in the reference period and the amount of revenue referred to in Article 8 (1) in the reference period; and
(f) an indication of the duration of the quarantine ordered in the event that the compensation bonus is to be granted because of a significant concern for the activity referred to in Article 8 (6).
(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.
(6) The Czech Social Security Administration immediately sends to the bonus administrator, at his request, information that he has received from the treating physician information on the quarantine order of the compensation bonus entity and its duration or termination; Article 58 of the Tax Code applies mutatis mutandis to the submission of an application and disclosure of information.
Application for a compensation bonus in the case of a person acting under an outside-employment agreement
(1) The application for a compensation bonus provided for in Article 4 contains, in addition to the requirements laid down in Article 13, 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); and
(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 adjusted in accordance with Article 10 (2).
(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 application for a compensation bonus may be amended within the time limit referred to in Article 13 (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.
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) In the event that the compensation bonus is granted because of a significant concern to the activity referred to in Section 8 (6), the administrator of the bonus shall prescribe it in the tax register only after he has verified, on the basis of the information provided by the Czech Social Security Administration, that the conditions for entitlement to the compensation bonus provided for in Section 8 (6) are met.
(3) 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. The excess shall be refunded regardless of its amount.
(4) Repayment of the excess payment referred to in paragraph 3 shall be effected without cash to the account of the payment service provider in the Czech currency indicated in the application for the compensation bonus.
(5) The compensation bonus is not subject to enforcement or execution.
(6) 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.
MEASURES DETERMINING IMPACT IN THE BUDGET OF CIVIL
Contribution to the municipality
In order to mitigate the negative effects of this law on the budgets of municipalities, a contribution from the State budget (hereinafter referred to as the "Community contribution ') is introduced for each bonus period under Section 11.
Amount of the allowance to the municipality
(1) The amount of the contribution to the municipality shall be determined by dividing the amount corresponding to four fifths of the share of municipalities under the Act governing the budgetary determination of taxes on the paid compensation bonus between municipalities by means of the implementing legislation to the law governing the budgetary determination of taxes, which sets out the percentages of the individual municipalities in the parts of the national gross tax revenue, as in force on the date on which the contribution is referred to by the Ministry of Finance.
(2) The contribution to the municipality is not earmarked and is not subject to State budget management.
Common provisions for the Community contribution
(1) The contribution to the municipality 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.
(2) The contribution to the municipality is shown by the Ministry of Finance of the Region on the 15th day of the calendar quarter on the basis of continuous information on the state of the prescribed compensatory bonuses.
(3) The contribution will be transferred to the municipality within 5 working days of the addition to the account of the county to the account of the municipality held with the Czech National Bank by the Treasury according to the law governing budgetary rules.
MEASURES DETERMINING IMPACT IN THE COUNTRY BUDGET
Regional contribution
In order to mitigate the negative effects of this law on the budgets of the higher territorial authorities (hereinafter "the region '), a contribution from the State budget (hereinafter" the county contribution') shall be introduced for each bonus period under Section 11.
Amount of the county contribution
(1) The amount of the county contribution is determined by dividing the amount corresponding to four fifths of the proportion of the counties under the Act governing the budgetary determination of taxes on the paid compensation bonus between the counties on the basis of the percentage by which the individual counties participate in the part of the national gross tax revenue under the Act governing the budgetary determination of taxes, as in force on the date on which the contribution is referred to by the Ministry of Finance.
(2) The county contribution is not earmarked and is not subject to State budget management.
Common provisions for the contribution of the county
(1) The regional contribution will be provided by the Ministry of Finance of the General Treasury of the State budget.
(2) The contribution of the county shows the Ministry of Finance of the Region on the 15th day of the calendar quarter on the basis of continuous information on the status of the prescribed compensation bonuses, to an account held with the Czech National Bank subordinate to the Treasury according to the law governing budget rules.
TRANSITIONAL PROVISIONS
In the event that a person has been entitled to the compensation bonus under this Act and the compensation bonus under Act No. 461 / 2020 Coll., on the compensation bonus in connection with the prohibition or restriction of business activities in connection with the occurrence of the Coronavirus SARS CoV-2, as amended, they shall be counted against each other.
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. 95 / 2021 Coll., on Compensation Bonus for 2021 |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 26.02.2021 |
|---|---|
| Effective from | 27.02.2021 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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