The government has approved a proposal for a contribution for bankrupt entrepreneurs

The change only applies to natural persons – entrepreneurs in bankruptcy. The amendment has yet to be discussed by Parliament and signed by the president.

According to the Ministry of Finance, the negotiated agreement with the European Commission should enable the payment of support to bankrupt entrepreneurs. The Ministry of Finance has previously stated that it wants bankrupt entrepreneurs to be able to draw on all programs to help combat the effects of a pandemic.

Currently, drawing the compensatory bonus is one of the forms of public support, and therefore it must follow the general rules within the EU. In March 2020, the European Commission adopted a so-called temporary framework in which it set the conditions for the provision of public support during a pandemic, and one of these conditions is precisely that the recipient of support must not be bankrupt.

“Currently, we have informally negotiated with the commission that we will allow people who are already in the debt relief phase to draw the bonus, retrospectively for all five bonus periods,” said Finance Minister Alena Schillerová (for YES) last week.

Confirming the exemption with the European Commission would, according to her, allow other ministries to negotiate exemptions for other aid programs aimed at small businesses.

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Entitlement to the compensation bonus of CZK 500 currently belongs to entrepreneurs with business activities in directly limited or completely closed areas of the economy, for each day of restriction. At the same time, this activity must be the dominant source of livelihood for the applicant for the relevant period from June to September 2020.

In addition to directly affected entrepreneurs, entrepreneurs who are at least 80 percent directly connected to directly closed branches can also apply for the bonus, either by a long-term supplier-customer relationship or their activities are inextricably linked to a closed establishment.

The first period for the payment of the so-called compensatory bonus is from 5 October to 4 November, the second from 5 November to 21 November, the third from 22 November to 13 December, the fourth from 14 to 24 December and the fifth from 25 December to January 23. The application can be submitted up to two months after the end of the relevant bonus period. According to the law, the contribution paid is in fact a refund of personal income tax from dependent activity. To date, the financial administration has registered 407,235 applications and paid out 3.2 billion crowns.

The self-employed and partners of small companies could apply for a contribution for the first wave of the pandemic until August 7. The contribution in the first and second period was 500 crowns per day. The financial administration received over a million applications from the self-employed and partners of small companies and paid out approximately 21.9 billion crowns.

Source: EuroZprá by

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