We would like to inform you that the Government of the Czech Republic has extended the deadlines for filing tax returns and payment of income tax for 2020. The extension applies to both paper submissions, for which the deadline is postponed to 3 May 2021, and to electronic submissions, where the new deadline is 1 June 2021.

Furthermore, we would also like to inform you about two newly approved compensation programmes.

COVID – 2021

The new general programme COVID 2021 will replace the existing specific sector programmes (COVID – Accommodation, COVID – Rent, COVID – Gastronomy, etc.)

  • Who is eligible for compensation: businesses that have had their activities restricted by measures that combat the covid-19 pandemic. Businesses in all restricted sectors will be able to apply, as in previous individual programmes.
  • Maximum compensation amount: CZK 500 per day per employee in an employment relationship for the period, in which the operation of businesses was limited due to the coronavirus. This support also respects the temporary framework of the European Commission and the compensation is limited to EUR 1,800,000 per beneficiary.
  • Relevant period: The compensation will be available retroactively for the period from 11 January 2021.

COVID – Uncovered Costs

COVID Uncovered Costs is intended to help cover part of the uncovered fixed costs of entrepreneurs who have losses due to the coronavirus pandemic. It is a broad-based programme for businesses regardless of the specific sector, form of ownership or number of employees.

  • Conditions for eligibility: a decrease in turnover by at least 50 % in January and February 2021 compared to the same period in 2019 and evidence of the accounting loss. The programme is supposed to assist with the payment of costs / expenses that are not covered by revenues / income.
  • Maximum compensation amount: The limit per beneficiary will be CZK 40,000,000.

Both programmes are mutually exclusive. Entrepreneurs may choose one of these two compensations, depending on which will be more advantageous for them.

More information will be published during March in the announced calls for the respective programmes.

We will continue to inform you about developments regarding the new compensation programmes.

Do not hesitate to contact us in the case of any queries.