Coronavirus: economic measures

The Measure of the Public Health Authority of the Slovak Republic from 29.03.2020

The Public Health Authority of the Slovak Republic adopted a new public health emergency measure number: OLP/2777/2020 dated March 29, 2020 with effect from March 30, 2020, that by 6:00 am. all retail establishments and all establishments providing services shall close, except for:

• food stores, meat, bread and pastries, fruit and vegetables, food stores for special nutritional purposes for infants and young children, and food stores for special medical purposes - Monday to Saturday between 9:00 and 12:00, only persons over the age of 65 must be allowed to enter these premises;
• drugstores - Monday to Saturday between 9:00 and 12:00, only persons over the age of 65 must be allowed to enter these premises;
• pharmacies, shops and dispensers of medical devices and opticians;
• newspapers and stationery outlets;
• animal feed stores and veterinary clinics;
• operations of telecommunications operators;
• public catering establishments and fast food stalls (no public presence);
• operations of postal, banking, insurance and leasing services;
• operation of online shops (e-shops) with the possibility of picking up goods in service and delivery services;
• laundry and dry cleaning;
• fuel and fuel filling stations;
• funeral, burial and crematorium services;
• car repair shops, tire repair shops and towing services;
• services of Slovak technical inspection and emission control;
• computer and telecommunications services;
• taxi services for the transport of goods and goods;
• lawyers, notaries, bailiffs, insolvency practitioners, mediators, auctioneers, arbitrators, experts, interpreters and translators;
• operations of key services;
• collection yards;
• textile and haberdashery shops;
• bicycle shops and services;
• horticulture and gardening operations, provided that the total internal sales area of the establishment does not exceed 2000 m2;
• operation of construction, installation and wiring materials, ironmongery, paint colors, if the total internal sales area of the operation does not exceed 2000 m2.
  
  

However, the permitted opening of the above operations is subject to the following measures, namely:

• limit on the number of customers in the premises - only one customer per 25 m2 of the sales area of the facility can be in the shop at any one time;
• entry and stay in operation is only possible with the upper airways covered (scarf, veil, scarf, etc.);
• either hand disinfection or disposable gloves shall be provided at the time of entry into premises;
• a minimum distance of 2 meters between customers must be maintained;
• a notification of the obligation to comply with the above measures shall be displayed at each entry into premises.

The change and amendment of the Measure of the Public Health Authority of the Slovak Republic from 24.03.2020

By supplementing and amending the public health emergency measure of the Public Health Authority of the Slovak Republic number: OLP/2733/2020 (Supplement No. OLP / 2778/2020 of 28.03.2020), an exemption was granted for veterinary ambulances and emergency pharmacies listed below, which can remain open every Sunday of the month. The following establishments must remain closed on Sundays of the month, namely:

• food, meat, bread and pastry stores, fruit and vegetables, food stores for special nutritional purposes for infants and young children, and food stores for special medical purposes;
• pharmacies, shops and dispensaries of medical devices (not applicable to public pharmacies listed in the schedule of organization of the provision of medical emergency services, public pharmacies and hospital pharmacies with the public expenditure department with the place of activity at the fixed point and ambulances);
• drugstore stores;
• newspaper and print shops;
• animal feed stores.

We would again like to remind you that the operators of closed shops are obliged to disinfect the premises of the premises in question (ie sanitary day) every Sunday of the month from 25.03.2020 until further notice.

Economic measures

In order to prevent and reduce the negative impacts of the corona crisis on the economy of the Slovak Republic, several measures aimed at helping employees, companies and self-employed persons should be adopted in the coming days. Their exact content and conditions for their granting are not yet fully known and are the subject of forthcoming government negotiations and admissions processes of the National Council of the Slovak Republic.

Below is an overview of the proposed economic measures presented together with the information available so far:

1. Companies whose operations are obligatory closed as a result of the above measure will be reimbursed by the State with 80% of the employee's gross wage. This amount should also include tax and levies for the employee concerned, with a reimbursement of 80% being calculated on a gross salary up to a maximum of EUR 1,100. The aid will be granted up to a maximum of EUR 200,000 per company.
   
   The condition for reimbursement of an employee's salary should be that such employee must not be in the termination notice period. At the same time, such an employee should not be dismissed for a period of 6 months from the date of termination of the salary aid reimbursement.


2. The state will provide contributions to employees and self-employed persons depending on the decrease in sales of the respective company, considering the extent of the decrease in sales according to the following scheme (total up to the sum of 800.000, - EUR per year):
   
   
   • the decrease of sales more than 20 % = contribution in the amount of 180,- EUR; 
   • the decrease of sales more than 40 % = contribution in the amount of 300,- EUR;
   • the decrease of sales more than 60 % = contribution in the amount of 420,- EUR;
   • the decrease of sales more than 80 % = contribution in the amount of 540,- EUR.

   In the case of the month of March during which the above-mentioned measures were introduced, the calculation of the decrease in sales will be assessed aliquotly from the effective date of the measures.

   For the calculation of the decrease in sales, the decisive figure for sales in the same period last year will be used. The whole process from the administrative point of view should be administered by the competent Central Office of Labour, Social Affairs and Family.



3. The bank guarantees provided by the state in the amount of 500 milion EUR per month. Any other details are not known yet.
   
   At the same time, the Ministry of Finance of the Slovak Republic announced the planned cooperation with Slovak Investment Holding under the name “SIH Antikorona Guarantee”, which is aimed at helping entrepreneurs and small and medium-sized enterprises by providing preferential loans to commercial banks. Negotiations on the implementation of the 'SIH anti-corona guarantees' are scheduled for April 2020.
   
   


4. The state pays 55% of employees gross wage while the employee is in quarantine or a parent is taking the social care benefit. This measures were already mentioned in the previous newsletter.
   
   


5. In case of sales decrease of more than 40 %, an option to postpone the payment for the employee´s levies. Any other details are not known yet.
   
   In case of sales decrease of more than 40 %, an option to postpone the payment for the tax advances.
   
   This measure should apply to all taxpayers whose sales fall by more than 40% in a given month / quarter compared to the same month / quarter last year (each taxpayer must make a comparison of sales by his own).
   
   Before filing the request for the postponement of the payments it is necessary to electronically submit to the tax administrator an affidavit about the decrease of the revenues due to which the taxpayer will not pay the tax advances for the income tax for the particular month/quarter.
   
   Please note that a separate affidavit needs to be submitted for each month/quarter, for which the payments should be postponed, it is not enough to provide one solemn afidavit in which several months / quarters are summarized.
   
   In the case of succesfull postponement of payment of income tax advances, the taxpayer will be obliged to make (defer) the payments until 31.03.2021 in the tax return for 2020.
   
   


6. Possibility to set off losses not yet claimed since 2014 inclusive.
   
   This measure concerns entrepreneurs submitting a tax return for 2019 in the period from 01.01.2020 to 31.12.2020. If the taxpayer has already filed a tax return due to the business year in January / February 2020, he may nevertheless make a tax loss through an additional tax return.