Proposed measures directed at economy in the context of COVID-19 virus outbreak
19.3.2020 - The main aim of these measures is to support finance condition, liquidity and cash flow of companies and employers, to prevent collapse in the business sector and to maintain strategic and critical processes necessary to tackle COVID-19 virus spread while maintaining stability and minimising of panic.
Measures divided into 4. scopes:
- Immediately feasible measures
- Measures requiring legislative adjustments
- Measures aimed at prevention and system of actions for companies
- Measures supporting repeated economic growth
Immediately feasible measures
- Granting of short-term interest-free loans for companies (mainly SMEs) via EXIMBANKA (Export-Import Bank) and the Slovak Guarantee and Development Bank (SZRB) to overcome the period of state of emergency.
- Postponement for duty to submit VAT returns for natural person and juridical person until 30 June.
- Postponement for duty to pay taxes for every tax payer until 30 June.
- Postponement for duty to submit VAT returns and the deadline to pay VAT on the basis of tax subject’s notice.
- Extension of deadline for tax controls and local surveying – mainly in actions requiring personal contact, witness hearings, verbal notice to appear and proceedings and inspection of records. Ensuring of controlled deadlines of financial obligations the government has towards companies – including VAT refunds.
- Remit of interest on late tax income prepayments if the arrears appear during the current period and will be paid until the end of this year.
- Postponement of obligatory social and health payments in the period from March 2020 until June 2020 for juridical persons and self-employed persons. I can be paid in the period of the next 18 months.
- Absolute exemption from social and health payments for employees, income taxes for those employers, who are unable to assign work to their employees for the reason of adhering to orders putting down the operation as a result of preventive quarantine measures.
- Extension of deadline for customs debt payment (from 10) to 30 – 45 days for third country food importers.
- Automatic extension of validity of MOT and emission tests for vehicles having expired validity from 13 March (including) until 12 June.
- Financing of costs of supported technologies producing electricityduring the period March– December (which would lead to the lower price of tariff for the operation of the system)
- Negotiations with bank and finance sectors on possible postponement of loan instalments, mortgages and leasing without negative records in register for the debtor. Negotiations on possible bank product that would help companies to overcome the adverse financial situation – for that purpose, banks would be proportionally pardoned the bank levy payments. Negotiations on the possibility that insurance companies would not have to pay the levies.
- Negotiations with energy suppliers for the purpose of exemption from companies to pay penalties for not complying with arranged diagram of electric energy consumption.
- Exemption for companies from paying penalties if they are unable to carry out public contracts.
- Restriction of new and planned controlling actions of companies and businesses until June.
- Negotiations on the EU level onenabling of use of euro funds for the purpose of covering of the effects of COVID-19 and financial rehabilitation.
Measures requiring legislative adjustments
- Change in conditions of the ‘care for a family member’. If the child has two parents, one of them stays at home and would receive 80% of the average salary (this would be paid by the Social Insurance Agency). If the child has only one parent, the government would provide a financial voucher for the purpose of home care services.
- Introduction of a new status – the so called ‘quarantine incapacity to work’ eligible for sickness benefits (The Social Insurance Agency would pay the costs from the day 1).
- Simplification of conditions for payment of a contribution for job retention to help SMEs and self-employed.
- Adjustment of regulation on production of alcohol for the purpose of disinfectant production.
Measures aimed at prevention and system of actions for companies
- Coordination and ensuring of energy supplies, ensuring of minimal transport services and transport itself, coordination of waste economy and area-wide food supply. Ensure the operation of strategic production and critical and IT infrastructure where the technological process does not allow interruption of production (eg. glassworks, aluminum plants, chemical enterprises). To this end, where necessary and with the agreement of the competent authorities, allow quarantine measures at the workplace.
- Creation of traffic schedule for entrepreneurs published on web pages including useful links, documents and updated FAQ for companies’ representatives.
- Creation of automated CHATBOT providing basic information for company owners.
- Sped up COVID-19 testing for employees of companies that have a significant strategic importance for functioning and supplying of the state.
- Creation of database of persons with positive travel anamnesis and suspicion on being COVID-19 positive in compliance with available technical and information tools. The database would be available to strategic employers, energy companies, police and every hospital of facility providing medical help.
- Active monitoring of development in particular sectors, cooperation and gathering of information on affected companies’ needs performed by Slovak Business Agency and SARIO.
- Due to the overloaded telephone and data network, the government allows a preferred connection for SIM cards of strategic and energy companies providing the functioning of critical /energy infrastructure.
- The Slovak Post Office would automatically extend the period for storage of recorded delivery mail until the end of the emergency situation plus one week.
- Statistical Office and other authorities that are required to announce and report will receive exemption from sanctions for not providing information.
Measures supporting repeated economic growth
- Adjustment of possible tax loss depreciation not to be limited in any way or to be limited by a certain period (7 years like in CZ). The depreciation is currently limited to be done evenly over 4 consecutive years.
- Support for investing in the private sector via sped up tax depreciation using the tools provided by Slovak Investment Holding, European Investment Bank or Slovak Business Agency.
Want to know more?
COVID-19 & your business_old
The Covid-19 pandemic is causing uncertainty and disruption around the world. Mazars Slovakia and Group priorities are to protect people and ensure business continuity and service for our clients, working as one partnership, supporting each other in Slovakia, the CEE region and across the globe. Since the beginning of the crisis, we have been closely monitoring the situation and taking action to mitigate the effects of the pandemic. We remain by our clients’ sides, helping them navigate these unprecedented times.