The compensation bonus for the self-employed extended

The compensation bonus for the self-employed extended source: Profimedia

The financial help in the form of compensation bonus for the self-employed and entrepreneurs is going to be extended to June 8. The extension even after that date is up to discussion.

The financial help for self-employed persons and entrepreneurs will be extended even after the date April 30.  The Minister of Finance Alena Schillerová announced that the program should continue until all restrictions and bans caused by the coronavirus epidemic are lifted. The expected date, when all restrictions should be revoked, is June 8. However, due to the fact that it is nearly impossible to clearly determine the exact date of the end of all restrictions, a third period until August 31, at the latest, might be introduced.

The proposal has to be discussed by the Parliament and signed by the President of the Czech Republic.

The Ministry of Finance estimates that up to 700 000 self-employed persons might apply for the compensation bonus, but it is also expected that the overall number will decrease every month as measures and restrictions are going to be gradually loosened.

The compensation bonus remains 500 Czech crowns per day, but applicants will have to submit a new affidavit for the next period. Self-employed persons and entrepreneurs may already apply for the compensation bonus 25 000 Czech crowns for the period from March 12 to April 30. The bonus can be applied for until June 29 on Financial administration websites. The bonus is not subjected for taxation and fulfilling of required conditions is based on affidavit.

Those who may apply for the compensation bonus are people who have business as their primary or secondary activity, with the exception of people who are employees and their self-employment is secondary activity. Also, students up to 26 years of age engaging in business may apply for the bonus. In addition, the bonus can be also claimed by co-working persons and spouses, provided they are not employees. Disability and old-age pensioners may also apply. It is to be noted that only those who are a taxpayer, who were self-employed or entrepreneurs on March 12, or those whose business activity was suspended after the date August 31, 2019, may apply for the compensation bonus.

The chief of Tax Administration Tatjana Richterová announced the most common errors when applying for the compensation bonus, which are insufficient identification of the applicant, for example, missing VAT ID (Czech DIČ), birth number (Czech rodné číslo) or signature. Many applications are also submitted repeatedly and very often the account number is incorrect or missing.

Sources:
ČT24