Assessment of insurance premiums for individual entrepreneurs
Individual entrepreneurs have the right to delay filing a tax return until the end of the month following the month in which the government announces the end of the emergency. In this regard, an amendment to the law on social insurance was adopted, which regulates the assessment of obligations to pay insurance premiums in accordance with the submitted tax return for 2019. For individual entrepreneurs who filed a tax return before 03.30.2020, the occurrence of insurance obligations will be assessed by 01.07. 2020, as before.
Individual entrepreneurs who did not file a tax return for 2019 by 03/31/2020, but took advantage of the term extension, will pay insurance premiums that will be assessed by the first day of the third calendar month following the month in which the deadline for filing a tax return has ended.
The clause remains in force, according to which the Social Insurance Company will notify the IP about these obligations within 20 days from the occurrence of insurance obligations.
Deferral of premiums
According to the order of the Government of the Slovak Republic, insurance premiums for the months of March and May 2020 can be paid up to 12/31/2020 if the employer, as a payer of contributions, or individual entrepreneurs indicate in the reports a reduction of at least 40% of net turnover or profit from entrepreneurial activity. Thus, employers and individual entrepreneurs, in the event of a decrease in net turnover by at least 40%, can ask for a deferred payment social insurance contributions, including for the month of May 2020. However, these contributions must be paid no later than 12/31/2020, and apply only to employer contributions.
Initially, the term for the payment of insurance premiums for March-2020 was extended only until 07/31/2020, but the current situation, according to the explanation of the Social Insurance Company – the deadline was automatically extended until 12/31/2020 and there is no need to send a new form – form.
Government assistance to tenants
The government announced the possible provision of rental allowance to tenants whose businesses were closed following a decision by the public health administration (Úradu verejného zdravotníctva). The model of government assistance for tenants should work according to the scheme according to which the state will pay the amount of the lease in the amount provided by the lessor discounts.
This means that if the lessor provides the lessee with a discount of 50% of the rental amount, the remaining 50% of the rental amount will be paid by the state. If the discount on the rental amount is less, the state will pay only the corresponding part of the rental amount, and the difference will be paid by the tenant in installments distributed over 48 months. Within 48 months, during which the tenant will pay part of the lease amount, the lessor will not be able to interrupt the lease and increase the lease amount.
The government offer of state assistance in this regard has not yet been approved by parliament, and to date, even a draft legal norm has not been published that will govern the above, therefore it is possible that the adopted norm on state assistance to tenants will differ from the originally declared one.
According to the Travel Reimbursement Act, food and travel reimbursement are increased on the basis of standards approved by the Ministry of Labor, Social Affairs and Family (Ministerstva práce, sociálnych vecí a rodiny). Due to an emergency, the Government of the Slovak Republic decided in this case to suspend such an increase, and for the period until 12/31/2021 will be applied
the amount of food, which was determined in the norms adopted in 2019. The decision not to increase travel allowances has a direct impact on the size of the employer’s allowance for employee meals, which depends on the amount of travel rewards.
Approval of financial assistance to support business in large firms:
Similar assistance that small and medium-sized enterprises could receive can now be received by large enterprises with more than 250 jobs. State aid in this case will be provided through the Export-Import Bank of the Slovak Republic (Exportno-importnej banky Slovenskej republiky) and funds managed by AO Slovak Investment Holding (Slovak Investment Holding, as). They will provide guarantees for loans obtained through banks and branches of foreign banks. In relation to large enterprises, the cancellation of payments for guarantees on loans issued by commercial banks was also approved. State assistance in the form of payment of interest on loans provided by the bank, the so-called bonification, which was applied to small and medium-sized employers, will not be possible in relation to large enterprises. Based on a state guarantee, a commercial bank will provide the applicant with a profitable interim loan aimed at financing his business activities. A loan can be granted to an enterprise only if the enterprise does not have debts to the Social Insurance Company (Sociálna poisťovna), the Medical Insurance Company (Zdravotna poisťovna), is not in competition and in the process of restructuring, or if it fulfills other conditions specified by the financing bank .
Economic support to employers, entrepreneurs and individuals without profit
We informed you about economic assistance from the state in the previous issue of our Newsletter dated 24.4.2020. Initially, financial assistance was planned only by the end of May 2020, however, the Government of the Slovak Republic on 05/20/2020 decided to continue the period for which it would be possible to apply for an allowance, and for the months of June and July 2020.
School opening and childcare allowance
From June 1, 2020, the founders of educational institutions may decide to reopen kindergartens, comprehensive schools and extended-day school clubs. Parents have the opportunity to decide whether the child will go to school or not. Those parents who do not take advantage of voluntary attendance at school and continue to care for their children at home, in connection with which they will reappear eligible for childcare benefits under the Social Insurance Act, will not be required to submit a new application for nursing. However, it is imperative that by June 30, 2020, parents send the appropriate form of a receipt for the care application (Čestné vyhlásenie k žiadosť o ošetrovné) to the appropriate branch of the social insurance company, on the basis of which they will continue to receive childcare allowance for a period of crisis.