Outputs of the Senate of the Parliament of the Czech Republic meeting on March 25th, 2020
During a non scheduled meeting on March 25th, 2020, the Senators approved and supported all the Government proposals concerning the coronavirus situation as submitted by the Deputies.
For business people, mainly the following new legislation is important:
Law draft on some adjustments in the field of electronic evidence of takings with regards to the announced emergency state
There will be a postponement of the last wave of EET for the duration of 3 months starting on the date of the emergency state termination, therefore, on July 1st, 2020, the earliest.
Law draft on some adjustments concerning the social security with regards to the emergency precautions taken during the 2020 epidemic
The State will pay the care giver’s allowance for the whole duration of the schools closure caused by the coronavirus crisis and that to the parents of children up to 13 years of age who stayed with their offspring at home. The parent will be given 60% of the reduced basis of assessment and that even retrospectively. This allowance will also be given to the self-employed.
Law draft on some adjustments in the field of social security insurance premiums and the financial contribution for the State employment policy and pension insurance with regards to the emergency precautions taken during the 2020 epidemic
The social insurance premiums advances are remitted for the duration of 6 months and, in practice, the insurance premiums to be paid for this year by the self-employed are reduced by half.
Law draft by which the Act No. 592/1992 Coll. on insurance premiums for the public health care insurance as amended is changed
The healthcare insurance premiums advances are remitted for the duration of 6 months and, in practice, the insurance premiums to be paid for this year by the self-employed are reduced by half. The deadline for the income and expenses report submission to the Insurance Corporations is postponed.
The Czech Chamber of Commerce assumes that all the discussed law drafts will be promptly signed by the president of the Czech Republic and therefore this new legislation will soon come into force. More information to the particular draft laws is to be found on the website of the Senate of the Parliament of the Czech Republic here (currently in Czech only).
The Amendment of the Act on State budget for the year of 2020 was already signed by the President of the Czech Republic, Mr. Miloš Zeman, today. In this case, the Senate of the Parliament of the Czech Republic does not, according to the set legislative procedure, deal with such an amendment.
The approved deficit of the State budget for this year is to increase from the original 40 billion to 200 billion Czech crowns which will, among others, make space for the compensational expenses programs and tax and insurance premiums relieves.
Based on the outcomes of today’s meeting of the Board of the Czech Chamber of Commerce, we update our already published 19 demands by another topic discussed in these last days throughout our membership:
Paying only the VAT resulting from the paid invoices. The Ministry of Finance of the Czech Republic should make use of the leeway given by the European directives and quickly prepare an amendment to the Act on VAT which would temporarily introduce, at least for some payments, the so called cash principle of paying taxes. Considering the out of the ordinary problems with cash flow on the side of customers, many companies, especially the small ones, are getting in trouble when a tax resulting from the goods or services provided is to be paid in cases when they were not paid by the customer in the first place.
The President of the Czech Chamber of Commerce, Mr. Vladimír Dlouhý, asked the Minister of Labour and Social Affairs and the Minister of Finance of the Czech Republic to adjust the Government approved program of State compensations to employers, the so called Targeted Program of Employment Support Antivirus, to better suit the employers. For you, employers, the methodology of requesting the State support will be crucial. CCC, therefore, proposed to MoLSA this evening several changes of this methodology we introduced in order to reach fair program parameters. As an example we present the following two:
According to our analysis of the financial contribution calculated for 1 employee, the ceiling amount would be too low. Although the State is prepared to contribute to wage compensations paid by 50 or 80%, the compensated monthly wage is to be limited by the median value, therefore, by the sum of 31.000 Czech crowns. And that is a problem. The companies paying higher wages – and those do not necessarily have to be above-average ones – would have been given relatively less State contributions.
In the context of the Government’s decision the services of the Czech Chamber of Commerce – issuing of the certificates of origin of goods, ATA Carnets and other accompanying documentation – will be provided in a special regime, i.e., via post only. The Czech POINT office will be temporarily closed. More information can be found here (currently in Czech only).
The Czech Chamber of Commerce also intensively communicates with its regional chambers and tradesmen associations. Together we therefore analyze negative consequences for business people and we summarize all the proposals of possible compensational solutions. Afterwards we will use those in the following discussions with the relevant State bodies.