Press Advisories

24. 9. 2020 19:08

Measures adopted by the Czech Government against the coronavirus



General measures

  • A 30-day state of emergency was declared as of 12 March. This state of emergency was later extended until 30 April 2020. The state of emergency was subsequently extended until 17 May 2020.
  • As of 13 March, full-time education in elementary, secondary and tertiary educational facilities was cancelled, as well as in universities and facilities specialised in language training. Events organised by these organisations are forbidden.
  • As of 13 March, 6:00 am, all sporting, cultural, religious and other activities both public and private involving more than 30 people are forbidden. This does not apply to meetings of the state administration (e.g. the judiciary, Government meetings, meetings of institutional bodies), or to funerals.
  • As of 14 March, public access to swimming pools and tourist information centres is forbidden. The same applies to indoor and outdoor sports centres service providers (over 30 people at any one time) and retail sales in stalls and markets. This restriction applies also to casinos, public restaurants and other food service establishments, including food courts in shopping malls larger than 5000 m2.
  • As of 14 March, retail sales and the sales of services in business premises are forbidden, with the exception of foodstuffs, electronics, ICT, fuel, pharmacies, chemists, animal welfare goods and feeds, opticians, newsagents, laundromats and e-shops. As of 26 March, there are new exceptions to this ban: locksmithing and servicing of household products, repair, maintenance and installation of household machinery and equipment, funeral services and car washes. This measure will last at least until 11 April and may be extended.
  • As of 16 March, free movement is limited with the exception of travel to and from work and trips necessary to ensure basic human needs (e.g. foodstuffs, pharma shopping, helping older family members). The provision of de accommodation services is forbidden. This limitation on free movement applies until the end of the state of emergency. As of 27 March, accommodation services are allowed to accommodate guests who need accommodation for the purposes of work or business.
  • As of 18 March, all re-export of medicines and medicinal products registered for CZ market to the EU and any export of such outside the EU is forbidden. With effect from the same day, all stores and transport operators are advised to regularly disinfect their premises, particularly areas that routinely come into contact with people.
  • As of 19 March, all persons need to wear a face mask or other covering of the nose and mouth while outside of their place of residence. As of 9 April, an exemption has been granted from wearing protective masks while travelling by car for members of a single household and for bus drivers who are separated their from passengers in a separate cabin.
  • As of 20 March, access to retail stores between 7:00am and 9:00am is restricted exclusively to persons over the age of 65.
  • As of 25 March, all shops over 500 m2 are reserved from 8:00am to 10:00am for seniors and disabled persons above 50 years of age. In stores below 500 m2, employees are instructed to give priority to the aforementioned persons.
  • As of 30 March 2020, the so-called “smart quarantine” project has started up in test mode. The goal of smart quarantine is to prevent the further spread of SARS CoV-2 coronavirus in the Czech Republic as quickly and effectively as possible. Smart quarantine, which will map the contacts of positively tested individuals for COVID-19 using modern information technologies, is intended to help regional hygiene stations trace any other potentially infected people.
  • An obligation for landlords using digital platforms (e.g. Airbnb), to inform the municipal trade licensing office, at its request, of the number of contracts concluded for tourism services, the total price for these services, as well as the address of the place where guests were staying. In the future, the data may be used to trace those accommodated in the event of the threat of the infection spreading.
  • A draft Bill on the powers of the Czech Police and the municipal police to penalise breaches of crisis measures, was adopted. Police officers will now be able to penalise on the spot any persons in breach of the crisis measures, even in cases that have to be normally dealt with in administrative proceedings.
  • As of Tuesday 7 April, individual outdoor sports are permitted. When keeping a safe distance of two metres and with a maximum of two people, these sports can be performed without respiratory protection. The ban on use of common spaces like showers and lockers is still in force. From the same date, raw material collection yards, waste collection yards and composting plants may also be in operation.
  • As of Thursday 9 April, all hobby markets, building material shops, ironmongeries and shops providing sale and service of bicycles are reopened. These will have to follow stricter hygiene rules, such as the obligation to place hand disinfection at the entrance, strict adherence to safety distancing and the obligation to wear gloves.
  • As of April 20, the following business can be reopened: craft workshops (except for professions where a direct physical contact with clients is a requirement), car dealers, outdoor markets or dog grooming salons. From the same date, students of the last year of university programmes may return to their universities for individual consultations. Last but not least, weddings of up to 10 people and outdoor training sessions of professional athletes (both under strict hygiene conditions) may be held as well.
  • As of April 27, church services with a maximum of 15 persons can be held under strict hygienic conditions.
  • An accelerated plan to relax restrictions on businesses and other activities has been introduced:
    as of 20 April – craft workshops, farmers' markets, car dealerships, outdoor training activities for professional athletes, weddings of up to 10 people,
    as of 27 April – business premises up to 2,500 m2, (only if these are not in shopping malls over 5,000 m2), driving schools, gyms and fitness facilities without the use of locker rooms and showers, church services for up to 15 people, libraries, outdoor expositions of zoological gardens,
    as of 11 May – shops in shopping centres, business premises over 2,500 m2, restaurants can open their gardens while serving food there, beauty services, museums, galleries, outdoor premises of castles and chateaus, outdoor training activities for professional athletes without public access. All theatres, cinemas and circuses may now be opened (max 100 persons),
    as of 25 May – restaurants, accommodation services, taxi services, tattoo salons, theatres, cultural and sporting events (limit on number of participants TBC), weddings, indoor expositions of zoological gardens.
  • As of 24 April, free movement of people outside will be possible for groups of up to and including 10 people.
  • As of Monday April 27, all university students are now able take part in personal individual consultations.
  • An accelerated plan by the Ministry of Labour and Social Affairs to relax measures in social services has been approved:
    as of 27 April – social services will be working online and via telephone,
    as of 11 May – opening of social services for youths and families with kids,
    as of 25 May – permission to visit clients of social accommodation services and opening of all social services for clients under 50 years of age,
    as of 8 June – renewal of individual planning and contracts (e.g. the possibility of walks outside the complex),
    as of 22 Junes - opening of all social services for all groups including seniors.
  • As of 1 May, an exemption for wearing protective masks has been approved. This concerns mentally ill people, children under the age of seven in kindergartens, artists (actors or singers) at work and TV presenters.
  • As of 11 May, pupils in the last year of primary schools can return to schools together with students in the last year of secondary schools and conservatories. Participation will not be mandatory and can take place in a group of a maximum of 15 people.
  • As of Tuesday 5 May, new exceptions to the wearing of protective masks apply for kindergarten teachers, children, pupils, students and pedagogical staff during school lectures.
  • A bill, which specifies the remits of the Ministry of Health to take operational measures to prevent the further spread of covid-19, has been approved. The law applies only until the end of 2020 and gives the ministry the opportunity to limit certain high-risk activities or services.
  • As of Monday 25 May, wearing of protective masks will be mandatory only in the interiors of buildings other than the place of residence and in public transport.
  • As of Tuesday 12 May, persons during entrance exams for high schools and universities, during daily classes at one-year foreign language courses or when providing counselling services will not have to wear protective masks. The exception applies only if the distance between attendants is at least 1.5 meters and with the maximum number of 15 persons in one room.
  • An amendment to the Public Procurement Act, which aims to simplify the purchase process of personal protective equipment as emergency supplies after the end of the state of emergency, has been approved. The contracting authority would then not have to meet all the usual requirements of the law and could significantly speed up the realisation of the purchase.
  • A bill to mitigate the effects of the coronavirus epidemic in the area of proving qualifications for the purposes of employment relations has been approved. Due to the impossibility of ensuring an objective review of qualification preconditions, it will be possible to meet the requirements of legal regulations and technical standards for the performance of agreed types of work only formally. This possibility should end six months after the end of the state of emergency.
  • As of Tuesday 19 May, workers in offices sitting at least 2 meters away from other colleagues, will not have to use a protective mask while working. The same exception applies to workers, who work with a high heat load.
  • As of 26 May, the reserved period for shopping for seniors is abolished, the obligation to use a protective shield for barbers, hairdressers, masseurs and other similar professions is abolished and the obligation to wear a protective mask at work is abolished if a person works at least 2 meters away from another person.
  • As of 1 June, a voluntary return to schools is possible for pupils of special primary schools and pupils of high schools and conservatories for the purpose of practical teaching. The maximum number of students in one group is 15.
  • As of 8 June, all pupils and students of primary schools, secondary schools, conservatories and higher vocational schools can return to schools voluntarily for consultations. The maximum number of students in one group is 15.
  • As a part of the so-called Smart Quarantine 2.0 project, a new Emergency Operations Centre Department, which will report directly to the Chief Hygienist of the Czech Republic, will be established at the Ministry of Health. Among other things, the department will be responsible for analysing threats with an impact on public health, for proposing solutions and for developing and managing the Smart Quarantine 2.0 project.
  • As of June 8, it will be possible to organize events with the participation of up to 500 persons, terraces of restaurant will be able to remain open even after 11 pm, it will be possible to try on clothes at outdoor markets and the number of people who may be in the zoo, botanical garden or grounds of castles is increased to 250 per hectare. In exhibition halls, castles, theatres, cinemas, concert halls and circuses can be now up to 500 persons. The obligation of social distancing in auditoriums of theatres and cinemas and the obligation of visitors of swimming pools to wear a protective mask is abolished.
  • The decision to deploy members of the Czech Armed Forces in rescue work to protect the population and prevent the spread of coronavirus was made on 13 July. This involved the deployment of 68 soldiers in total. They will be at the disposal of the Ministry of Health.
  • Special voting methods for regional and senatorial elections were approved. Even people in quarantine and in closed facilities can now vote. Voting will be possible via voting drive-ins, directly inside closed facilities and using special portable ballot boxes.
  • A Health Risks Council has been established to deal with serious health risks that could pose a threat to the population or to the Czech Republic. The President of the Council is Prime Minister Andrej Babiš. The Integrated Central Management Team, which will be the executive operational body and will deal with any problems as necessary, will be subordinated to the Council. 
  • The Czech Republic is using a traffic-light system dividing individual districts by colour based on the occurrence of infection and its community transmission. White, green, yellow and red are used for the individual districts according to the level of risk. 
  • The obligation of schools to provide distance education to pupils in the event of another school closure, or if pupils' school attendance is banned, was also approved. Pupils are obliged to attend distance education as part of their compulsory education.
  • The release of CZK 984.5 million was approved for acquisition of technical equipment for schools to provide distance education. The total amount is nearly CZK 1.3 billion. Each teacher will receive CZK 20,000. Schools will use these funds to acquire technical equipment and software to provide online teaching. Regions need not request the funds.
  • The valid recommendation for authorities contains a set of measures to limit the risk of infections occurring and being transmitted between employees. For example, it is compulsory to wear face masks in common areas, practise social distancing and introduce staggered operation.
  • From 1 September public events attended by more than 1,000 people at the same time (if the event is mostly outside) and 500 people (if the event is mostly indoors) are restricted.
  • From 1 September it is also forbidden to be in indoor spaces and the public transport without wearing protective equipment to cover the mouth and nose. 
  • The move to send personal protective equipment via Czech Post to the endangered population over 60 years of age was approved. Every Czech citizen over the age of 60 should receive a package containing one FFP2 respirator and five face masks.
  • From 24 September catering facilities will be closed from 22:00 to 6:00. This measure will remain in force for 14 days.
  • From 24 September the attendance limit for public events at venues divided into sectors will be reduced to 100 people at indoor venues and 2,000 people at outdoor venues. The limits for events without sectors are still 500 people at indoor venues and 1,000 at outdoor venues. This measure will remain in force for 14 days. For events attended by 10 or more people at indoor venues and 50 or more people at outdoor venues, however, all attendees must have a place to sit.

Measures concerning foreigners and border crossing

  • As of 14 March, temporary reintroduction of internal borders with Germany and Austria - lasting until 24 April 2020 with a possible extension. Border crossing possible only at a limited selection of 11 land borders as well as Prague International Airport and Prague-Kbely airport. Additional 8 border crossings available for verified cross-border commuters. The land borders with Slovakia (from 13 March) and Poland (from 15 March) were closed by those countries’ governments.
  • As of 16 March, until 12 April, access to the Czech Republic is barred for all foreign nationals, with the exception of foreign nationals with permanent residence or temporary residence of over 90 days and foreign nationals whose entry is in the interests of the Czech Republic.
  • Anyone returning to the Czech Republic must undergo a mandatory 2 weeks’ quarantine.
  • CZ citizens are forbidden to leave the country (with certain exceptions e.g. cross-border workers).
  • Foreign nationals with permanent residence or temporary residence of over 90 days may leave the country without right of return for the duration of the state of emergency.
  • The granting of visas and temporary residence permits exceeding 90 days and the relevant procedures at CZ consular offices have been suspended with the exception of foreign nationals whose visa applications are in the interest of the Czech Republic.
  • Citizens already legally present in the Czech Republic are allowed to stay for the duration of the state of emergency.
  • As of 21 March, all cross-border workers must submit proof of foreign employment as well as all relevant documentation when crossing the national border. Documentation will be stamped on crossing.
  • International air travel, rail travel, coach travel, boat travel and road travel for more than 9 persons is suspended.
  • A new measure adopted due to problems with cross-border workers. When returning to the Czech Republic, the latter will automatically have to submit to a fourteen-day quarantine. In practice, this will mean that if a cross-border worker does not want to be exposed to the risk of quarantine, he/she will be forced to find temporary accommodation at his place of work for the necessary period. As of 26 March, the measure concerning cross-border workers has been modified. They are now divided into different categories according to the border crossing point and the type of work carried out abroad. For example, a cross-border worker passbook is not required, and no quarantine is required upon return for medical personnel.
  • As of 14 April, travelling abroad for "essential activities" will be allowed. This will include business trips, the assembly of a production facility, a visit to a doctor or to a relative. Each trip will be followed by 14 days of obligatory quarantine on return.
  • Third-country doctors without the necessary examinations will be allowed to work in Czech hospitals. This measure is valid for the duration of the state of emergency and three months thereafter.
  • As of Monday April 27, the rules for crossing state borders have been changed. EU citizens arriving in the Czech Republic for business purposes and university students from EU countries may now come to the Czech Republic. Czech citizens are able to travel abroad, however on their return they must submit to  14 days’ quarantine or provide a test with a negative Covid-19 result.
  • A new crisis measure allowing experts and other key employees from the Republic of Korea to come to the Czech Republic for the needs of Hyundai Motor Manufacturing Czech in Nošovice, has been approved. This concerns a total of 786 professionals, whose stay in the Czech Republic will be subject to strict hygiene measures.
  • A partial adjustment of the rules for crossing the borders of the Czech Republic for cross-border workers from 1 May 2020 has been adopted. A test for covid-19 with a negative result every 30 days will be sufficient for them from now on. If they are unable to submit a negative test, they will have the opportunity to submit it back to the relevant regional hygienic station within 72 hours.
  • As of Monday 11 May, cross-border public transportation is allowed again with the exception of air traffic, which still remains limited.
  • As of Monday 11 May, the current rules for border crossing will be relaxed. All citizens will be able to cross the state border at selected border crossings, which were previously used only by commuters. Railway corridors to Germany and Austria will also be functional.
  • The rules for the entry of foreigners into the Czech Republic will be relaxed. Seasonal employees or holders of long-term visas will now be able to entry the Czech Republic. Each person will have to submit a negative test upon arrival.
  • As of 26 May, the regime at the state borders will be eased. EU citizens and foreigners with the status of a long-term resident in EU Member State will be able to enter the Czech Republic in order to perform economic activities, to visit relatives or to study at a university. Everyone will have to prove themselves with a negative test for covid-19 upon entry.
  • All border crossings with Germany and Austria are reopened. The Brno-Tuřany, Karlovy Vary, Ostrava-Mošnov and Pardubice airports are also reopened. At the same time, only random border controls will be carried out and all border crossings can be used again 24 hours a day.
  • A measure of the Minister of Health, which will dramatically ease the current regime for travels to and from abroad, has been noted by the Government. The EU member states, and other states of the Schengen area are divided into three categories (according to the level of risk of COVID-19 disease). Czechs and foreigners with a long-term stay in the Czech Republic will be able to travel to countries of all categories after this date and will not have to prove themselves with a negative test for coronavirus after returning from countries with low and medium risk. Foreigners arriving from medium and high-risk countries will then have to prove themselves with a negative test upon arrival (in case of absence of a negative test, these foreigners will be submitted into quarantine).
    List of countries:
    • Low risk: Belgium, Bulgaria, Denmark, Estonia, Finland, Croatia, Ireland, Iceland, Italy, Cyprus, Liechtenstein, Lithuania, Latvia, Luxembourg, Hungary, Malta, Germany, the Netherlands, Norway, Poland (most territories), Austria, Romania, Greece, Slovakia, Slovenia, Spain, Switzerland;
    • Medium risk: United Kingdom;
    • High risk: Portugal, Poland - Silesian Voivodeship, Sweden.
    • updated list of European countries according to the level of risk on Ministry of Health website
  • As of 5 June, all border controls on borders with Austria and Germany end at 12:00 pm. At the same time, the Czechs are no longer obliged to prove themselves after returning home from Slovakia, Hungary, Germany and Austria by a negative test for covid-19 or to go to quarantine. Despite opened borders with Germany, the Ministry of Foreign Affairs warned that this is still only a unilateral step of the Czech government, and therefore it will still be necessary to follow the current conditions that apply in Germany.
  • As of 15 June:
    • the measure regarding the restriction of crossing the state border of the Czech Republic extends the exemptions to all qualified workers falling under the Highly Qualified Employee Program or Key Scientific Staff Program (a negative covid test must be submitted upon entry),
    • it is possible to organize mass events for a maximum of 2,500 people. The area in which the event takes place must be structurally divided into individual sectors (in each of the maximum number of 5 such sectors there may be a maximum of 500 people),
    • the obligation to wear a protective mask while being outdoors applies only at mass events where people come into contact at a distance of less than 1.5 meters,
    • it is possible to organize mass events for a maximum of 2,500 people. The area in which the event takes place must be structurally divided into individual sectors (in each of the maximum number of 5 such sectors there may be a maximum of 500 people),
    • the obligation to wear a protective mask while being outdoors applies only at mass events where people come into contact at a distance of less than 1.5 meters,
    • it is possible to sell food for immediate consumption on farmers' markets,
    • barbers / hairdressers do not have to keep a two-meter distance from customers and other barbers / hairdressers,
    • the operation of steam saunas is possible and during sauna ceremonials it is not necessary to maintain larger distances than specified by regular hygienic standards,
    • restaurants can serve buffet meals,
    • aquatic centres can run attractions with the creation of waves and flowing water,
    • and finally, theatres and cinemas can re-start selling food and drinks however, these cannot be consumed in the auditorium during performances.
  • The validity of residence permits in the Czech Republic on the basis of short-term work or seasonal visas and work permits for foreigners from third countries has been extended until 16 September 2020. The reason for further extension of work permits and visas of foreigners from third countries, is the worsened epidemiological situation in their countries of origin, e.g. Ukraine, where there is still a large incidence of new cases of covid-19 and at the same time these employees are very important for Czech employers.
  • Foreigners with employment contracts expiring between 12 March and 16 November 2020 may continue to work in the Czech Republic until 16 November 2020. After that, however, holders of short-term visas and visas for 90+ days for work or seasonal purposes must exit the Czech Republic.
  • Before entering the Czech Republic individuals who spent longer than 12 hours in the last 14 days in a state not on the list of countries with a low risk of infection must complete the form at The obligation to complete this form applies to travellers coming to the Czech Republic as of Monday, 21 September 2020.


Economic measures

  • An amendment to the Act on the Czech National Bank (CNB), easing the existing restrictions on open market transactions, has been approved. Thanks to the amendment, the CNB can now trade instruments with maturities of more than one year. In addition, the CNB can from now on trade with other entities, for example, with insurance and pension companies or with other institutional investors (normally the CNB may trade only with banks and credit unions). All of this has been carried out within the framework of the ECB rules; the aim of this amendment is to strengthen the stability of the Czech financial market.
  • As of 17 March, the Czech National Bank (CNB) has reduced the two-week repo rate by 50 basis points to 1.75 %, the Lombard rate to 2.75 % and the discount rate to 0.75 %. From 18 March, delivery repo operations will be announced three times a week (Monday, Wednesday, Friday). The CNB has revised the countercyclical capital buffer for exposures located in the Czech Republic to 1.75 %.
  • Extension of the deadline for the filing of tax returns until 1 July (normal deadline: 31 March) and remission of any fines stemming from the late submission of tax declarations or reports.
  • To support employment, the state will provide 100 billion CZK in direct support and 900 billion CZK indirectly in the form of guarantees.
  • Adoption of so-called Liberation packages. Liberation Package I – state will not impose fines for late submission of personal and corporate income tax returns, for late payment of a tax claim and for late submission of control tax reports.
    Liberation Package II – remission of the June advance on personal and corporate income tax, the state will not impose fines for late submission of real estate property tax return, introduction of Loss carry back and suspension of the obligation to electronically record sales for entities in all phases of EET (during the state of emergency and three months thereafter). Liberation packages have been extended to defer payment of road tax due in April and July to 15 October and to include a proposal for VAT exemption from goods that are supplied free of charge (e.g. Covid-19 test kits, protective clothing, other medical supplies, etc.).
    Liberation Package III – comes with, for example, a remission of a fine for late tax returns, interest on arrears and interest on arrears of property tax until 30 November 2020, remission of value added tax on gratuitous delivery of basic protective equipment and other goods by 30 July 2020 and remission of additional sanctions and administrative fees for late tax documents filling.
  • Adoption of a company support programme called “Antivirus” – a final version of the Antivirus employment protection programme, in which the state will contribute to employers' salaries. Companies have to fulfil several conditions, for example they must strictly follow the Labour Code, employees must not be in their probationary period and the employer must pay wages and make all legal deductions. They also have to prove that any liquidity problems are connected to the COVID-19 pandemic. The amount of state compensation paid to employers is derived from the average super-gross wage, including mandatory contributions (48,400 CZK), and depends on the reasons why they had to put employees on “a barrier to work”. Employers will be able to apply through Labour Office for a contribution in two schemes. The programme has now been extended until 31 August. More information here.
  • All waves of the Electronic Sales Control System (EET) will be postponed until the end of 2020.
  • Proposal to postpone the launch of the final phase of the Electronic Sales Control System (EET) until 3 months after the end of the state of emergency.
  • The state will help self-employed persons who are taking care of a child from 6 to 13 years of age and are not able to go to work due to the coronavirus, to the value of 500 CZK per day. All self-employed, who have income only from their business, will be given six-month holidays on the payment of health and social insurance. These holidays cover the amount of the minimum insurance premium, i.e. 4986 CZK.
  • An amendment to the State Budget Act for 2020 has been approved. The state budget deficit (already increased twice) will be increased by another 200 billion CZK to the amount of 500 CZK (the original draft budget assumed a deficit of 40 billion CZK).
  • The Government has released 3.3 billion CZK for the 2020 Rural Development Program. This funding should help entrepreneurs in agriculture, food and forestry while fighting coronavirus crisis. The main reason for this support is to secure Czech food self-sufficiency.
  • 3 billion CZK will be released from the government budget reserve to ensure the operational purchase of necessary protective equipment and other equipment and 4.316 billion CZK to cover costs incurred by the Ministry of the Interior for the centralised purchase of protective equipment.
  • The preparation of state orders for transport infrastructure - for maintenance, repairs or new investments has been approved. Through the State Fund for Transport Infrastructure, the state will spend 6.5 billion CZK in excess of the current budget. The contractual deadlines for these contracts were also extended.
  • Compensation Bonus, which will directly support self-employed persons to the amount of 25,000 CZK. This will be paid if the following conditions are met:
    a) a self-employed person under the definition of  to the Pensions Insurance Act,
    b) the activity performed is the principal activity (under clearly defined conditions it may also be an ancillary activity),
    c) the decrease in gross sales during the period from January to March 2020 was at least 10% compared to the period from January to March 2019 (if a business was set up after January 2019, the comparison counts the first 3 months period after setting up the business),
    d) the entity achieved at least 180,000 CZK of gross income in 2019 or at least 15,000 CZK/month in the case of a business set up after January 2019.
  • An amendment to the Act on the Coronavirus Compensation Bonus has been approved. This enables the reimbursement of 500 CZK per day to self-employed persons until 8 June, when the end of all restrictions is expected.
  • A moratorium proposal on the repayment of loans and mortgages signed before 26 March 2020, which will be binding on all banks and non-banking companies, has been adopted. Both natural persons and corporate debtors will be able to suspend their repayments for three or six months, as they choose. The debtor must notify this intention to the creditor by declaration that he/she/it is taking this action because of the negative economic impact of the coronavirus pandemic. However, he/she/it will not have to provide proof of this.
  • Companies which were forced to close their premises due to government orders, will be entitled to defer their rents. The deferral will apply from 12 March to 30 June and deferred payments will have to be paid back within 2 years. Also, a ban has been adopted on terminating the rental contracts of people who are not able to pay rent due to financial distress caused by Covid-19 epidemic.
  • To reduce the impact of the economic downturn, a proposal to create a financial reserve of 4% of GDP for 2021 and then consolidate public finances in the following years, has been approved. The European Commission has enabled Member States to temporarily ease fiscal rules by activating the so-called “escape clause”.
  • A bill to mitigate the impact of the crisis in the tourism sector, which aims to help travel agencies, who are threatened with bankruptcy, has been approved. The bill proposes a  year’s transition period for reimbursement of holidays already paid for, during which the travel agency will offer its clients a voucher for a package tour of the value of the package tour for which they originally paid. The travel agency will only have to return money in the event that the client fails to make use of the voucher within 12 months. Such vouchers can also be used by organisers of cultural events.
  • A cultural package worth more than 1 billion CZK has been adopted. The independent arts segment will receive 440 million CZK, 300 million CZK will go to regional culture support and subsidised organisations in the sector will receive 300 million CZK.
  • An amendment to the Excise Tax Act has been approved. By extending the storage period for unit packs of cigarettes, the proposal intends to maintain a smooth transition to the new tax rate, even with the difficulties caused by the coronavirus pandemic.
  • A bill on the public health insurance premium transfers has been approved. The government will increase the payment for each person insured by state by 500 CZK per month from 1 June 2020 and by another 200 CZK per month from 1 January 2021.
  • A bill on certain measures to mitigate the effects of the coronavirus epidemic on sport has been adopted. The proposal provides for an extension of the powers of the National Sports Agency, to encompass preparation of relevant grant programmes.
  • A proposal for an extraordinary contribution of 4 billion CZK to the Export Guarantee and Insurance Company (EGAP) fund has been approved. The money is intended to cover liabilities from guarantees that EGAP will provide primarily for loans to large companies.
  • A proposal has been approved from the Ministry of Health for debt relief for selected state-run hospitals that are in long-term financial difficulties and for whom the crisis around the spread of the coronavirus has made their situation even worse. Almost 6.6 billion CZK will be allocated from the government’s budget reserve.
  • A bill on the abolition of Real estate acquisition tax, has been adopted with retroactive effect. Anyone who acquired the property in December 2019 at the latest will be exempted from the obligation to pay the tax. Already paid taxes will be refunded.
  • The budget strategy of public institutions of the Czech Republic for the period from 2021 to 2023 and the related convergence program of the Czech Republic, which will be submitted to the European Commission and the Council of the EU, have been adopted. It is expected that in 2021 state budget expenditures will reach CZK 1,792 billion, in 2022 CZK 1,811 billion and in 2023 CZK 1,825 billion. The structural balance should thus reach minus 4 percent of GDP in 2021.
  • A draft amendment to the Compensation Bonus Act has been adopted. It anticipates that, under certain conditions (maximum 2 partners and not profiting from another form of state financial aid), owners of small limited liability companies could also benefit from the compensation bonus. The amendment proposes a compensation of CZK 500 per day for the period from March 12 to June 8.
  • A bill to mitigate the impact of the coronavirus epidemic in the area of protection of employees in case of the insolvency of the employer has been adopted. Thanks to this bill, the employees of the insolvent employer will be satisfied by partial wage claims from the Labour Office of the Czech Republic.
  • A subsidy program for the payment of rents for establishments of entrepreneurs, who were affected by government restrictive measures, has been adopted. The proposal counts with the payment of up to 50 % of the total rent for the period from April to June 2020 (a maximum of CZK 20 million). To obtain this subsidy, the entrepreneur has to submit a confirmation from the landlord in the form of an amendment to the lease agreement, that he has provided the tenant with a 30 % rent discount. Allocation of another CZK 2.5 billion to this program.
  • A bill, which allows to defer the payment of social security insurance premiums and contributions to the state’s employment policy paid by employers as taxpayers, has been approved. Employers will be able to pay insurance premiums for May, June and July until 20 October 2020 with a penalty of only 4% p.a.
  • The National Reform Program, which describes, for example, planned investments in the infrastructure or steps to fulfil the Innovation Strategy of the Czech Republic 2019 to 2030, has been approved. The document also summarizes the economic measures taken in connection with the coronavirus pandemic.
  • A bill setting a deadline for the submission of the bill on the State budget of the Czech Republic for 2021 has been approved. The bill was prepared as a result of the current coronavirus crisis, due to which it is still unclear how big loss will the state’s revenues suffer next year. The Ministry of Finance wants to submit the final bill on the State budget for 2021 to the Government by 30 September.
  • A guarantee program COVID III, through which the state will support companies with up to 500 employees by securing their debts in the total amount of CZK 150 billion in guarantees, has been announced. State aid will cover operating loans up to CZK 50 million, which will be provided to companies until 31 December 2020. Depending on the number of employees, companies will be able to apply for an operating loan of up to 80-90% of the principal of the guaranteed loan.
  • The Czech Rise Up 2.0 subsidy program, for which the Government will allocate up to CZK 300 million, has been approved. The program targets projects that focus on the use of existing technologies for the development of medical and non-medical solutions, the aim of which is, for example, to manage all the consequences of the crisis or preparation for a possible second wave of the coronavirus pandemic.
  • A bill on the compensation to persons providing paid health services has been approved. The law obliges health insurance companies to reimburse the costs of health care providers, which are connected to the ongoing coronavirus epidemic. According to the Ministry of Health, the final sum may mount up to CZK 5 billion.
  • A bill on an anti-crisis tax package to help the most affected sectors has been adopted. The package mainly touches a VAT reduction from 15 to 10 percent in the area of accommodation services, admission fees to cultural events and sporting events, admission fees to sports grounds, fare on ski lifts and admission fees to saunas and other similar facilities. The package also includes the reduction to 25 percent in road tax on lorries over 3.5 tonnes, shortens the deadline for refunding the overpayment of excise duty on so-called "green diesel" and introduces a loss carry back for income taxes for all natural and legal persons.
  • A bill on the waiver of social security premiums and contributions to the state employment policy paid by employers as taxpayers has been adopted. This program, called Antivirus C, applies, under specific conditions, to employers with less than 50 employees and to the months of June, July and August.
  • The program providing support via the “Support and Guarantee Agricultural and Forestry Fund, Operation 2020 - reduction of the loan principal”, which is intended for small and medium-sized entrepreneurs in the field of primary agricultural production, has been adopted. They will be able to apply for financial support in the maximum amount of CZK 150,000, which, however, must not exceed 50% of the outstanding loan principal.
  • The COVID-Sport subsidy program, which is intended to provide financial assistance to organizers of sports events, operators of sports facilities and sports organizations that have to pay rent for the use of sports facilities, has been approved. Total of CZK 1 billion is set aside for the program, which was initiated mainly due to the fact, that the above-mentioned are mainly non-profit organizations, who weren’t able to apply for financial assistance from any of the already launched governmental programs.
  • A bill which aims to mitigate the impact of the decline in tax revenues of municipalities in 2020, has been adopted. Each municipality should receive a bonus of CZK 1,200 per inhabitant, which mounts to total amount of almost CZK 13 billion.
  • The Crisis Action Plan of Tourism of the Czech Republic 2020-2021 has been approved. By mentioned plan the Government wants to support entrepreneurs in the field of tourism, e.g. in the form of support for increasing demand for their services called Holidays in the Czech Republic, revision of the National Tourism Support Program in the regions or previously introduced vouchers which postpone the obligation to return money to clients for cancelled trips.
  • A proposal for the acceptance of a very advantageous loan from the Development Bank of the Council of Europe, thanks to which the Czech Republic can obtain up to EUR 300 million, has been approved. This money will be used to cover the extra costs in healthcare, occurred due to the fight against the coronavirus.
  • The Government consents to make an agreement on irrevocable and unconditional guarantees payable on demand within the meaning of Article 11 of the Council regulation on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak. Thanks to this agreement, the Czech Republic will be able to obtain up to EUR 374 million to pay programs announced by EU member states to support the employment rate.
  • The financing of bilateral foreign cooperation and humanitarian aid until 2023 has been approved. Aid to developing countries worth over CZK 3 billion intends to help partner countries reviving their economic growth and thus open the door to these markets for Czech companies.
  • An amendment to the Act on Banks and an amendment to the Act on Recovery Procedures and Resolution of the Crisis in the Financial Market have been approved. These are intended to strengthen the banking sector, increase the efficiency of supervision and adjust the rules for possible resolution of banks' problems.
  • A second wave of financing of social services related to coronavirus, during which nearly a billion CZK will be released to cover the increased costs of social services operators during the epidemic, has been adopted.
  • A program called "COVID - Cultural and Creative Industries", to which CZK 1 billion will be allocated, has been approved. The money will be used, for example, to cover 50 percent of the costs (up to a maximum of CZK 5 million) for the organizers of cultural events, which have been either cancelled or postponed due to the coronavirus crisis. Small and medium-sized enterprises in the creative industries will be supported in the form of subsidies and creative vouchers.
  • The COVID – Spa program was approved on 29 June. Spa facilities will be allowed to offer clients a customer discount on curative sojourns and preventive spa visits amounting to CZK 4,000. The discount will be provided in the form of a voucher that potential clients will be able to print out from the website , or request directly at the spa facility. 
  • The draft amendment to the Compensation Bonus Act was also approved. This act allows CZK 350 per day from 12 March to 8 June 2020 to be paid out to individuals who, in the six months preceding the crisis, had been working under a contract for work or a contract of services for at least four months. The maximum compensation bonus per person is CZK 31,150. 
  • Support from the COVID – Culture program can be requested by organisers of cultural events who had to cancel or reschedule an event between 10 March and 31 August. Fifty percent of eligible expenditure will be paid out, up to a maximum of CZK 5 million. A total of CZK 900 million has been set aside. 
  • The COVID – Accommodation program has also been functioning since 20 July. If their accommodation facility has been operating for the last two years, accommodation providers can receive between CZK 100 and CZK 300 per room per night. This applies to the period from 14 March to 24 May. 
  • Due to the decision reached on 27 July, employees of inpatient care providers are entitled to remuneration from the subsidy program. An amount of CZK 11.25 billion is available under this grant title. Healthcare professionals in inpatient care are entitled to remuneration of CZK 25,000 per month and non-healthcare professionals to CZK 10,000 depending on hours worked. 
  • The eligibility of Targeted Employment Support Program expenses is extended until 31 October. This applies to regimes A and B of the "Antivirus Program". This can be used to compensate expenses incurred after 12 March. Total expenses of about 4.25 billion are anticipated for September and October.

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