Czech Republic: “Uncovered costs program” and support for businesses with decreased sales (COVID-19)
A “second call” to entrepreneurs to participate in a coronavirus “uncovered costs program.”
A “second call” to entrepreneurs to participate in coronavirus “uncovered costs program."
The Ministry of Industry and Trade issued a “second call” to entrepreneurs to participate in a coronavirus (COVID-19) “uncovered costs program.”
The program is intended to compensate for fixed costs incurred by entrepreneurs reporting significant decreases in sales when compared with the period before the COVID-19 pandemic.
- Applications for the period 1 April 2021 through 31 May 2021 can be filed if there was a decrease in sales for the relevant period of 2021 by at least 50% (when compared with the same period in 2019). Note this is a change from the first call of the program, under which the decrease in sales was compared with a comparable period in either 2019 or 2020. Read TaxNewsFlash
- The deadline for applications is 13 September 2021.
- When applicants cannot prove a sufficient decrease in sales for the entire relevant period but did suffer a decrease of more than 50% in April 2021, it is possible to claim just this month as the relevant period.
- As under the first call, support under the second call for the program would amount to 60% of uncovered costs for the relevant period (or 40% for applicants with any ownership interest held by the state or local government).
- Applicants need to prepare an adjusted income statement for the relevant period in accordance with the call’s requirements. When losses (net of subsidies) exceed CZK 5 million, applicants will have to submit an adjusted income statement (prepared in accordance with the call’s requirements) and verified by their auditor.
- The maximum subsidy amount is CZK 25 million (or CZK 15 million, when applicants chose April 2021 as their relevant period) or the amount of the undrawn subsidy determined during the first call. Applications would again be filed via the Ministry of Industry and Trade’s electronic system.
Read a July 2021 report prepared by the KPMG member firm in the Czech Republic
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