Financial help for self-employed persons

Financial help for self-employed persons source: Profimedia

The government declared that self-employed persons may expect financial help in form of no income benefit, nursing benefit when taking care of children, and insurance payments up to minimum forgiveness.

Due to disrupting effects of coronavirus epidemic and measures of the state of emergency which paralyzed the economy, the Finance minister Alena Schillerová introduced a set of financial aids aimed at the self-employed and freelancers whose income suffered a major decrease.

No specifics regarding foreigners have been mentioned, therefore it is assumed that all benefits apply to them as well.

15 000 Czech crowns financial help for self-employed persons

Self-employed persons whose income consists solely of business activity affected by the restriction of movement are about to receive a direct help of 15 000 Czech crowns every month. This financial aid will be paid on the basis of an application received by the Financial Administration until the state of emergency is revoked.

The exact technical parameters of the proposal are going to be presented at the Government's meeting on March 30th. After that meeting the Ministry of Finance will be able to inform the public about details of the intended help as the relevant legislation needs to be passed prior to implementing the measures.

According to the Finance minister, the total amount of financial aid is still unclear: “It is hard to make an estimate. The number of self-employed persons is somewhere between 400 thousand and half a million. We cannot guess how many people will register for the benefit, but a rough estimate is over seven billion Czech crowns to be paid monthly.”

Insurance payments up to minimum forgiveness  

Self-employed persons are also given another help during the state of emergency. The government decided that health and social insurance, up to the minimum, do not have to be paid by self-employed persons whose business is their main activity. The measure is in effect since March to August 2020.

The minimum insurance payments are currently 2352 Czech crowns for health insurance and 2544 Czech crowns for social insurance. Those who have to pay more than the mentioned minimum will still have to pay the rest of the payment. If this is your case, you can pay the whole half-year sum beyond the minimum payment when you submit the report on revenues and expenditures for this year in 2021. However, the government assumes that those self-employed persons not affected by the current situation will remain paying the sum beyond the minimum payment every month in standard terms.

If you classify only for the minimum insurance payment and you have already paid for March, then your payment is transferred and considered September payment.

The draft also covers remission of penalties and states that self-employed persons can submit their year's income and expenditure overview until August 3rd.

Financial help when taking care for children

Another financial aid has been introduced in form of the extension of nursing benefit to self-employed persons. You may apply for the benefit if you are taking care of a child up to 13 years of age, which will guarantee you 424 Czech crowns a day, making the maximum amount 13 144 Czech crowns per month. The benefit is paid until schools are reopened.

On the basis of the affidavit, it will be possible to apply for a nursing benefit at trade licensing offices. The form will also be possible to file electronically.

Sources:
čt24 , Ministry of Finance