Compensation Bonus for Self-employed

The Chamber of Deputies confirmed a compensation bonus for self-employed. Here we briefly describe the conditions for getting the bonus. On 7th of April 2020 The Chamber of Deputies amended a bill to provide a one-off payment of up to 25 000 CZK (i.e. 500 crowns for each calendar day of the bonus period) to self-employed. This relates to people affected by government measures in light of coronavirus epidemic for the period from 12th of March to 30th of April 2020.

Who can apply for a compensation bonus?

  • All self-employed (main and secondary activity), whose trade license was active on 12th March 2020. Only those, who are not registered at the Labour Office or receive benefits in material need. 
  • Self-employed as a secondary activity: disability and old-age pensioners, entrepreneurs on maternity or parental leave. Also those caring for a disabled person or preparing for future business (students).
  • Self-employed, who suspended their trade license after 31st of August 2019 (seasonal business).

What must an application contain?

  • Basic identification data of an applicant. 
  • Bank account number, where the bonus will be sent (can be also a bank account of another person, for example a relative). The bank account should be in CZK.
  • Affidavit on the fulfillment of the conditions for awarding the bonus.

How to?

  • Applications will be submitted to the Financial Authority, to which a self-employed person usually submits a tax declaration. 
  • It can be done on paper (brought to the Financial Authority office or sent by post), electronically here or via email. 
  • Applications can be submitted up to 60 days after the end of bonus period. 
  • Compensation bonus will not be subject to income tax. 

Applications would be accepted after the law will come into effect, which will probably occur after Easter.

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