Dear Clients, Dear Business Friends,
In the past, we have presented to you and successfully guided many of you through government programmes to support entrepreneurs. Please be advised that the COVID 2021 Programme and also the programme titled COVID – Uncovered Costs will be launched again. This time, losses will be compensated for the decisive period from 1 November 2021 to 31 December 2021. Entrepreneurs will have to choose between the two programmes, because they cannot participate in both at once. To help you consider your options in due time, we present the following comparison of the terms of the two programmes:
The government’s Antivirus employment support programme has been extended, in regime A, until 28 February 2022. The regime A compensates employers for 80% of their costs of compensation for salaries paid to employees during quarantine or isolation, but not exceeding CZK 39,000 per month.
Regime B has also been reinstated and will be in force from 1 November 2021 to 28 February 2022. This regime compensates employers for 60% of their costs of compensation for salaries paid to employees on the following grounds having their origins in the COVID-19 pandemic:
– limitation of inputs necessary for the employer’s activities (raw materials, components, etc.);
– reduced demand for services or products; or
– a significant number of staff are on sick leave or in quarantine or isolation.
Compensation in the regime B is limited to CZK 29,000 per month and employee.
AMENDMENT TO THE EUROPEAN COMMISSION’S TEMPORARY FRAMEWORK
The Temporary Framework for State Aid Measures to Support the Economy in the Current Covid-19 Outbreak (the “Temporary Framework”) regulates primarily the options available to the EU Member States in providing subsidies in terms of time and finance. The Temporary Framework governs the disbursement of grants from a number of subsidy programmes, including those mentioned above. The Temporary Framework has now been extended until 30 June 2022 and the limits on the subsidies that a company can receive under national subsidy programmes have been increased. The limit for programmes falling under section 3.1. of the Temporary Framework is now EUR 2.3 million per undertaking. There is also a new maximum amount of aid granted under section 3.10 of the Temporary Framework, which is now EUR 12 million per undertaking. Antivirus grants are also included in this limit.
We continue to monitor the development of the compensation programmes and we are ready to share with you the full conditions based on which your potential participation can be evaluated, as soon as they are published. We will be happy to help you with the preparation and submission of your applications for participation in these programmes.
Your LTA team
Please note that in view of the current situation, the above information may be subject to further developments and legislative changes. This newsletter does not contain all the terms of the above-specified programmes and cannot replace professional consultancy provided based on a specific situation.