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Covid support from April 2022

11. 4. 2022Ludmila Benešová

At the end of March 2022, the Ministry of Industry and Trade (hereafter to be referred to as “MIT”) published on its website the official calls of the COVID subsidy programmes COVID 2022 Sectoral Support and COVID – Uncovered Costs – Sectoral Support.

As announced by the MIT in a press release during February 2022, the terms of the subsidy programmes are primarily targeted at the most affected areas of business activities. The MIT then defines the activity sectors in the supplements to each of the calls for each subsidy programme. In the case of both programmes, the supported business activities are divided into two groups.

The first group of supported business activities is catering and hospitality, catering for weddings, family celebrations, etc., accommodation services, as well as laundries and travel agencies.

The second group of supported business activities is the business of organising, organising and implementing sports, cultural, conference, trade fair and other events, including related technical services.

COVID – Non-covered costs – Sectoral support

An eligible applicant is an entrepreneur (an individual or a corporation) carrying out a business activity under private law, whose turnover from the supported business activity in 2019 or 2018 amounted to more than 50% of the total turnover of the business activity and whose turnover in the business activity decreased by at least 50% in the relevant period.

In addition to a fall in turnover of at least 50 %, the applicant must prove that the costs not covered or the loss less the subsidies granted were not covered during the relevant period. Applications can be submitted from 31 March 2022 to 17 May 2022 via the AIS MIT information system (AIS MPO).

Support is then granted at different amounts according to the groups of business entities divided by business area:

  1. group of supported business activities

The relevant period is from 1 November 2021 to 31 December 2021.

The applicant may choose a comparative period from 1 November 2019 to 31 December 2019 or from 1 November 2018 to 31 December 2018.The aid is granted at an amount of 50 % of the uncovered costs for the relevant period. The maximum amount of aid is CZK 1.5 million per applicant

  1. group of supported business activities

The relevant period is from 1 November 2021 to 28 February 2022.

The applicant may choose a comparative period from 1 November 2019 to 29 February 2020 or from 1 November 2018 to 29 February 2019.The aid is granted at an amount of 70 % of the uncovered costs for the given relevant period. The maximum amount of aid is CZK 3 million per applicant.

The applicant is then required to attach to the application:

  • An adjusted profit and loss account for the relevant period, drawn up in accordance with the requirements and criteria stated in Supplement 2 of the Call. This profit and loss account is based on a binding accounting statement format, although a range of specific rules must be respected when compiling it.

If a loss of CZK 3 million and more is reported, an Auditor’s Report on the Adjusted Profit and Loss Account must be submitted. The verification will be performed in accordance with International Standard on Auditing Engagements ISAE 3000 Verification Engagements that are not Audits or Reviews of Historical Financial Information, as a verification engagement providing reasonable assurance. The auditor must select during this verification materiality for this assurance engagement at an amount of 3% of the total costs (operating and financial) stated in the Adjusted Profit and Loss Account.

  • Statement of decrease in turnover in the relevant period compared to the comparative period,
  • Statement of turnover from supported activities for 2019, 2018, or the comparative year. The value of the reported turnover from supported activities in the selected year should be more than 50% of the total value of the entity’s business activity.
  • A summary of all grants and funds received or applied for by the applicant that are pending as at the date of application, for the relevant period or its part.

The COVID – Uncovered Costs – Sectoral Support programme cannot be combined with the other COVID – 2022 – Sectoral Support, COVID – Advent Markets and COVID BUS programmes.

Further information on this area can be found at https://www.mpo.cz/naklady

COVID – 2022 – Sectoral Support

An eligible applicant must be an entrepreneur, an individual or a corporation established under private law performing an entrepreneurial activity. At the same time, it must carry out at least part of its business activities in one of the areas defined in Supplement 1 of the Call, and whose turnover has fallen by at least 50 % in the relevant period compared with the comparison period.

An eligible applicant must have at least one full-time equivalent (FTE) employee. Applications can be submitted from 5 April 2022 to 12 May 2022 via the AIS MIT information system. The support provided is CZK 500 per employee per day of the relevant period.

According to the groups of business entities divided by business areas, support is then provided as follows:

  1. group of supported business activities

The relevant period is from 1 November 2021 to 31 December 2021.

The comparative period is from 1 November 2019 to 31 December 2019.

The maximum subsidy amount is CZK 3 million per beneficiary.

  1. group of supported business activities

The relevant period is from 1 November 2021 to 28 February 2022.

The comparative period is from 1 November 2019 to 29 February 2020.

The maximum subsidy amount is CZK 1.5 million per beneficiary.

The applicant must attach to the application a summary of the decrease in sales in the relevant period compared with the comparative period. If the entitlement to the subsidy exceeds CZK 1.5 million, it is at the same time necessary to verify the data on the decrease in sales by an auditor or tax consultant.

For the purposes of the Programme, only employees in an employment relationship, as well as so-called cooperating persons under Act No. 586/1992 Coll., on Income Taxes (in the case of applicants – individuals) and managing directors with a contract on the performance of the functions of managing director are considered employees. In all cases, only employees who were registered to pay insurance premiums with the Czech Social Security Administration (ČSSZ) on 1 November 2021 are counted.

The COVID-2022 Sector Support cannot be combined with COVID-Uncovered Costs, COVID BUS, COVID-Advent Markets and all other COVID-19 pandemic mitigation support programmes (except the Antivirus and Compensation Bonus programmes) for the same period.

Further information on this area can be found at https://www.mpo.cz/cz/rozcestnik/informace-o-koronavirus/covid-2022—sektorova-podpora–266644/

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