Support for partners of small limited liability companies

After the compensation bonus for self-employed persons within program “25” also the compensation bonus for partners in limited liability companies is introduced. This is a direct financial support in the amount of CZK 500/day and is valid for the period between 12 March and 8 June 2020. In total the applicant can receive the support in the maximum amount of CZK 44,500.

The support is aimed at small limited liability companies who have a maximum of two partners who are individuals, or more partners who are members of the same family. All of them can apply for the support individually, but only once (applies to situations when a person is a partner in more than one company).

The support will receive the applicant who meets other conditions as well. The applicant cannot be an employee subject to sickness insurance (except for the respective company or other exceptions) and shall not be a participant in the Antivirus program or the compensation bonus for the self-employed persons. The support will not be granted even in the case of companies which were in bankruptcy, liquidation or had status of an unreliable payer during the given period.

The effort of Ministry of Finance is to divert passive companies. For that reason each company have to undergo a test based on time, income and tax residence. Part of the time test is the condition that the applicant is an active partner as of 12 March 2020. The income test consists of declaration a minimum turnover of CZK 180,000 last year or the assumption of reaching at least this amount in 2020 or 2021. The last condition concerns tax residence as of 12 March 2020 either in the Czech Republic, the European Union or in the European Economic Area.

An application for this support is in many ways similar to an application for a compensation bonus for the self-employed persons. Applicants will apply for support through a form sent to the locally competent tax office. The condition for the payment of the bonus is the stating of a bank account in Czech currency and the signing of an affidavit in which the applicant confirms that in the given period he could not perform his activity above the usual in connection with COVID-19.

The deadline for applications is 60 days after the end of the bonus period, i.e. 7 August 2020.