ENTREPRENEURS AND BUSINESS RELATIONS

LAST UPDATE ON August 11, 2021, 4pm

Impact of pandemic measures on contractual relations – in general

Can changes related to government actions and the coronavirus pandemic warrant a reduction or increase in the contract price or other changes to contract terms?

It is not possible to unilaterally change the price or other terms of the contract unless there is a gross disproportion between the parties’ performance, and the parties have not contractually excluded the application of the provisions of Section 1765 or Section 2620 (2) of the Civil Code (the parties have assumed the risk of a change of circumstances in the contract).

Could the changes related to government measures and the coronavirus pandemic be grounds for non-performance of contractual obligations?

The coronavirus, or measures related to it, may justify non-performance of contractual obligations if they constitute a ‘force majeure’ and the parties have agreed so in the contract. If there is no force majeure provision in the contract, the law may be used – if a party is temporarily or permanently prevented from performing an obligation by an extraordinary, unforeseeable and insurmountable obstacle arising independently of its will, such party is not obliged to compensate for the damage.

Can changes related to government measures and the coronavirus pandemic be grounds for termination of contractual obligations?

Government measures that prohibit a wide range of activities may cause the termination of a contract obligation due to an inability to perform. However, this is only if performance cannot be provided even under difficult conditions, at greater cost, with the assistance of another person, or after a specified period of time. Some performance may also become illegal.

Other measures concerning entrepreneurs

Currently effective concessions and assistance for entrepreneurs

Antivirus A extension

  • for employers whose operations have been restricted or prohibited by government action
  • a maximum of 80% of the salary including deductions will be reimbursed, up to a maximum of CZK 39 000
  • the period of validity of the program extended until 31 December 2021

Covid 2021

  • a comprehensive program to replace previous sectoral programs from March 2021
  • the program is intended for companies whose business has been restricted
  • eligible costs: February 2020 – 9 May 2021
  • maximum amount of aid: 500 CZK/day per employee in employment, during the period restricted operation
    • if the company has less than 3 employees, the amount is 1500/day
  • a maximum of EUR 1,8 million per one beneficiary
  • decisive period: from 11 January 2021 to 9 May 2021
  • details available here

Covid – uncovered costs

  • Covid 2021 program alternative
  • intended for entrepreneurs who are at a loss due to a pandemic, with payment of a part of uncovered fixed costs
  • conditions: decrease in the company’s turnover in January and February 2021 compared to the same period of 2019 by at least 50 %
  • maximum amount of support: 40 million CZK per applicant
  • second call for proposals for the period from 1 April, 2021 to 31 May 2021
  • details available here

Postponement of Electronic Register of Sales (EET)

  • postponing the launch of the third and fourth waves of EET and discontinuing the obligation to use EET for the two waves already launched
  • obligation to use EET postponed until 1 January 2023
  • more information here

Covid III Guarantee – Invest

  • intended for sole traders and businesses with up to 500 employees whose economic activities are limited
  • the possibility to obtain a guaranteed loan for operating costs and investments
  • extension of the guarantee period to 6 years
  • the maximum loan amount must not exceed CZK 50 million
  • more information here

Covid Plus Guarantee

  • designed for large enterprises with at least 250 employees
  • conditions: exports must account for at least 20% of the company’s sales
  • the guarantee covers 80% of the loan principal
  • loan amount: CZK 5 million – CZK 2 billion
  • guarantees extended until 31 December 2021
  • more information here

COVID Sport Guarantee

  • Guarantee program for small and medium-sized sports entrepreneurs
  • Czech-Moravian Guarantee and Development Bank will provide a guarantee for an operating loan of up to CZK 15 million, up to 80 % of the principal
  • period of guarantee: 3 years
  • the possibility to apply for a financial contribution for the payment of interest up to CZK 1 million
  • more information here

Covid – Spa 2021

  • by supporting the demand for health and preventive stays in spas
  • decisive period: 1 January 2021 – 31 December 2021
  • specific conditions here

Covid – Travel Agencies Warranty

  • especially for small and medium-sized travel agencies
  • objective: to fulfil the legal obligation to insure against insolvency
  • maximum amount: up to 75 % of the required deductible of the CK up to a limit of 30 % of the insurance benefit, but no more than CZK 4 million
  • the aid will be granted for a period of 1 calendar year starting between 1 October 2020 and 31 December 2021

Emergency Financial Assistance (MOP) Covid-19

  • for people who have been proven to be in financial need due to coronavirus
  • the possibility of applying for a one-off emergency aid benefit
  • also applies to parents of children under 10 who stay at home on sick leave

Tax relief

  • deferral of tax obligations for all businesses whose activities have been immediately restricted or banned
  • the institute of tax loss reversal
  • general waiver of the administrative fee for submitting an application to the tax or customs office
  • general waiver of VAT on the free of charge supply of basic protective equipment until 30 June 2021
  • reduction of VAT rates on draught beer, catering services, accommodation and cultural services, operation of ski lifts, admission to sporting events and sports facilities
  • 25 % road tax reduction for vehicles over 3.5 t
  • abolition of real estate acquisition tax
  • permanent exemption from tax for unconsumed beer destined for disposal or reprocessing from 1 January 2021

Other programs

Terminated Antivirus A Plus

  • for employers whose operations have been completely banned
  • compensation of 100 % of wage costs up to a maximum of CZK 50 000, provided that the employer pays 100 % of the wage compensation
  • the period of expenditures of expenditures ended on 31 May, 2021

Terminated Antivirus B

  • for employers who have had to restrict operations due to employee quarantines, sales restrictions or supply disruptions
  • 60 % of salary costs will be compensated up to a maximum of CZK 29,000
  • the period of expenditures of expenditures ended on 31 May 2021

Terminated COVID-rent III program

  • for entrepreneurs who have had their operations restricted in leased premises
  • conditions for drawing: payment of at least 50 % of the decisive rent by the aid applicant before submitting the application
  • the amount of aid is 50% of the rent up to a maximum of 10 million for all establishments of one applicant
  • decisive period: 1 October 2020 – 31 December 2020
  • receipt of applications closed on 8 April 2021

Terminated compensation bonus for self-employed persons, partners of small limited liability companies and persons working on permanent and part-time contracts

  • 500 CZK per day
  • a total of six bonus periods were announced
  • applicable when a business is prohibited or restricted as a result of government restrictions affecting the predominant line of business, or a tie-in to one of those lines of business, resulting in a reduction in activity of at least 80%
  • the general deadline for submitting an application expired on 16 April 2021

Terminated New compensation bonus

  • intended for entities carrying out significantly affected activities
  • conditions: the amount of sales must not exceed 50 % of the average monthly amount in the comparison period
  • the general deadline for submitting an application expired on 2 August 2021

Termination of the COVID-culture III program

  • one-off support intended for artistic professions in music, theatre, dance, visual arts and literature
  • a one-off amount of CZK 60 000 for individuals
  • submission of applications closed on 15 April 2021

Terminated program Agricovid food industry II

  • for food producers supplying products to catering service operators whose income decreased by more than 25 % for the relevant period, i.e. from 1 December 2020 to 28 February 2021
  • up to CZK 200,000 per beneficiary and up to CZK 20,000 per cooperating person or employee
  • the total amount of the aid must not exceed 75 % of the actual proven reduction in income from food sales
  • the deadline for submitting an application expired on 30 April 2021

 


< Return

Na našem webu používáme cookies. Cookies jsou soubory, které slouží k měření funkčnosti webu, přizpůsobování obsahu webu, napomáhají tomu, abyste na našem webu byli spokojeni. Využíváním webových stránek s tímto souhlasíte. Další informace >