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News 23/2020

Compensation bonus II

On 14 November 2020, a new law regarding compensation bonuses entered into force. As in the spring, compensation bonuses are now intended to support small businesses in overcoming the unfavorable economic situation due to the state of emergency and the social and economic constraints associated with it. However, the conditions for compensation bonus have changed, unlike those to spring 2020. Below, we provide some principles that should be the basis for considering a claim for a compensation bonus in a particular case.

Who can apply for a compensation bonus?

A self-employed person or a shareholder of a small limited liability company whose business has been banned or restricted by government measures against the spread of coronavirus is entitled to the payment of the autumn compensation bonus. The condition is that the prohibited business activity brought the entrepreneur the majority of his or her income.

The compensation bonus also belongs to entrepreneurs whose customers have been affected by the prohibition or restriction of activities, or for cases in which the premises the entrepreneur carried out his or her business activities were closed by government regulation.

For the above reasons, the activity of such an entrepreneur must be limited to at least 80 % in order to be entitled to a compensation bonus.

Is it possible to apply for a compensation bonus in parallel with other grants or refunds?

The law explicitly lists the aid that excludes the right to the compensation bonus. This includes, for example, unemployment, nursing or other compensations provided in mitigation of the consequences of the epidemic, whether from the Czech Republic or another state of the European Union. The concurrence of compensation and the paid bonus is assessed for each individual calendar day.

How much and for what period could it be claimed?

As in the previous period, the compensation bonus amounts to CZK 500 per day. According to the current wording of the law, the compensation bonus belongs to entrepreneurs for the days from the 5th October to the 20th November 2020 inclusive.

How can I claim a compensation bonus?

The compensation bonus can be applied for, similarly to as in the spring, via an electronic form available on the website of the Financial Administration, no later than 20 January 2021. The application must include basic information about the applicant, the period for which the compensation bonus is requested, and the bank account details for sending the compensation bonus. The application also includes a solemn declaration that the applicant meets the legal conditions for granting a compensation bonus.

As it is clear from the above, the range of beneficiaries of the compensatory bonus has narrowed compared to the previous period. We therefore recommend that you consider applying for payment individually. If you need a consultation, our advisors are always available to help you with this issue.

WTS Alfery Team