News

Announcement of new “COVID” calls

At the beginning of March, the Czech Government has approved two new programmes for the support of enterprises and entrepreneurs affected by the COVID-19 pandemic, namely COVID – Uncovered Costs and COVID-2021. Their aim is to help business entities overcome barriers linked to the coronavirus infection, mitigate these barriers’ impact on their economic situation, increase their liquidity and maintain their business activity.

COVID – Uncovered Costs

This programme is intended to support business entities, whose revenue declined due to the COVID-19 pandemic by 50% during the decisive period compared to the same period in 2019. The decisive period means the period from 1 January 2021 to 28 February 2021. The subsidy shall cover part of the fixed costs/expenses uncovered by income or revenue. The applicants have to provide proof of the decrease in turnover and economic results by enclosing the Profit and Loss Account based on the Interim Financial Statements for the decisive period.

Who may apply for the subsidy:

• Business entities, individuals or legal entities performing business activity

What the subsidy covers:

• Uncovered fixed costs

Amount of the subsidy:

• The maximum subsidy amount per applicant is CZK 40 million.
• The aid is provided up to the undrawn limit of EUR 10 million according to the Temporary Framework of the European Commission per one enterprise (aid recipient).

Aid intensity:

• The level of support is 60% of uncovered fixed costs.

In the same decisive period, the aid from the COVID – Uncovered Costs programme cannot be combined with the aid from the COVID-21 programme and the compensational bonus.

COVID-21

This programme is intended to support business entities, whose sales from business activity fell significantly due to the COVID-19 pandemic. The sales include sales of goods, products and services and their decrease in the decisive period has to be at least 50% compared to the same period in 2019. The decisive period means the period from 1 January 2021 to 28 February 2021. The aid is intended to cover the necessary operating costs associated with business activity.

Who may apply for the subsidy:

• Business entities, individuals or legal entities performing business activity

What the subsidy covers:

• Operating expenses and expenses for maintaining the business activity such as staff costs, material costs, services (including leasing), depreciation charges, taxes and fees, loan instalments, overhead costs

Amount of subsidy:

• The subsidy amount per applicant is determined as a product of CZK 500 and the number of days within the decisive period and the number of employees with an employment status (FTE including the so-called cooperating persons and statutory executives with an agreement on the performance of duties).
• In the case of enterprises with fewer than three employees (FTE), the aid amounts to CZK 1,500 per day.
• The aid is provided up to the undrawn limit of EUR 1,800 thousand according to the Temporary Framework of the European Commission per one enterprise (aid recipient).

Within the same decisive period, the aid from the COVID-21 programme cannot be combined with the aid from the COVID – Uncovered Costs programme or the compensational bonus or any other aid programme for the mitigation of impacts of the COVID-19 pandemic, except for the Antivirus programme.

Antonín Weber

antoweber@deloittece.com

Lucie Tížková

ltizkova@deloittece.com