Below please find an overview of Acts intended for support of entrepreneurs affected by the COVID 19 pandemic, which were approved by the Chamber of Deputies and therefore are now only waiting for the President’s signature and their publication in the Collection of Laws:
First of all, a programme for support of entrpreneurs with less than 50 employees was approved. Under the “Antivirus C” programme, these entrepreneurs will be released of their obligation to pay social insurance premiums for June, July and August 2020 under the following conditions, with the fulfillment of the conditions for the waiver of premiums being determined for each month respectively:
- Only premiums paid by the employer as a taxpayer in the amount of 24.8% of their basis assessment are waived. The amount of insurance premiums paid for his employees does not change.
- Only an employer who does not employ more than 50 employees participating in health insurance in an employment relationship on the last day of the month can reduce the insurance premium.
- The number of employees in an employment relationship, determined at the end of each of these 3 months, did not decrease by more than 10 % compared to the number of such employees on 31 March 2020.
- The total basis assessment of employees in an employment relationship in a single month (out of the above-mentioned three months) did not decrease by more than 10 % compared to the total assessment bases of these employees in March 2020.
The Chamber of Deputies also approved the so-called tax package, which is intended to make it easier for entrepreneurs to overcome the economic impacts of the pandemic. The main measure in the whole package is the so-called loss carryback. That is, income tax payers will be able to retroactively reduce their tax base for the last 2 directly preceding accounting periods by the loss of the current accounting period, up to the amount of 30 million. The result will be a refund of the overpayment of income tax and thus an improvement of the taxpayer’s cash flow. The package also includes a reduction in the VAT rate for accommodation services.
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