4th group contribution provision - The first state aid to employees, entrepreneurs and sole traders

The Notification is published in Slovak on following websites: www.pomahameludom.sk and www.neprepustaj.sk (available only in Slovak). Respective updates are outlined in italics.

Information stated below is of general nature and does not necessarily consider specific conditions of your case. For assistance in your specific case, please, do not hesitate to contact us.

WHO IS ELIGIBLE FOR THE CONTRIBUTION PROVISION

The aid is therefore assigned to three groups of employers and self-employed persons:

• First group: employers and self-employed persons (as employers), who had to close their operational premises on basis of Public Health Authority decisions,
• Second group: self-employed persons whose sales dropped or they were forced to suspend or restrict their self-employment activities on basis of the Public Health Authority    
• Third group: employers, who will maintained job positions during the time of declared emergency situation, event if they were forced to stop or suspend their business activities.
• Fourth group: natural person that have no income from 13th March 2020 (originating either from business activity, non-business or dependent activity)

TYPE OF AID FOR THE 4. GROUP

Entitled applicants

Fourth group of state aid consists of self-employed persons who: 

• as of 13 March 2020, do not have any other income (from entrepreneurial, non-entrepreneurial or other dependent activity*), and
• suspended performance of its business activity, and
• did not suspended or revoked authorization for performance of its business activity.

All of the above-mentioned conditions must be met.

* For this purpose the retirement pension, early retirement pension, invalidity pension, partial invalidity pension and pension paid to workers of some professions, shall be considered as the income.

For this purpose the maternity allowance, parental allowance, financial contribution paid by the Labour office for mentoring or tutoring, widower's pension, orphan´s pension, contribution provided within any measure for last month, etc., shall not be considered as the income.

Who shall be considered as the self-employed person?

Applicants of fourth group are divided in two categories (A, B) as follows: 

Self-employed persons 

For purposes of granting the contribution in the A category, the self-employed person is a natural person, who started to perform its business activities no later than 1 February 2020 and does not have the obligation to pay sick and retirement insurance pursuant to the Act no. 461/2003 Coll. on Social insurance as amended, and is not a subject to so-called levy holiday. 

Category A consists of natural persons who are: 

• performing entrepreneurial activity pursuant to the Act no. 455/1991 Coll. on Entrepreneurial Activities Conducted under a Trade Licence (Trades Licensing Act)
• performing activity pursuant to the special acts (e.g. Act no. 78/1992 Coll. on tax advisors and Slovak Chamber od Tax Advisors, Act no. 323/1992 Coll. on notaries and notarial activity (Notarial Order), Act no. 586/2003 Coll. on advocacy, Act no. 540/2007 Coll. on auditors, audit and supervision over audit performance, Act no. 185/2015 Coll. Copyright law, Act No. 103/2014 Coll. on theatre and musical activity, act no. 40/2015 Coll. on audio vision, etc.) perform free professions  not regulated by special legal acts and are not entrepreneurial activity pursuant to the Section 2 of Commercial Code, perform free profession, i.e. activity to which law does not require any authorisation (i.e. actor, choreographer, dancer, musician, journalist, sculptor, etc., who are not in employment relation or other similar relation), 
• performing agricultural production, including operating t in forests and water bodies according to Act no. 105/1990 Coll. on private business of citizens.

Single person limited liability companies 

For purposes of granting the contribution in category B, the self-employed person is a natural person fulfilling all of the following conditions: 

• is a sole shareholder in a limited liability company (so called single person limited liability company), (i) with profit not exceeding of EUR 9,600 after taxation for last accounting period ending not later than on 31st December 2019, and at the same time (ii) its cumulative turnover was at least of EUR 2,400; In case the single-person limited liability company started to perform its business activity during the year 2019, (i) its profit after taxation for number of calendar months of performing activity shall not exceed the sum of EUR 9,600 /12x number of months of activity performance, and (ii) its cumulative turnover was at least of EUR 2,400//12x number of months of activity performance, and
• is a managing director in this limited liability company and is not its employee at the same time, and
• is not a shareholder in any other limited liability company.

For purposes of Measure 4, single person limited liability company is only a company with no employees.

(Self-employed person of category A and category B hereinafter referred to as the “Applicant”) 

Amount of the contribution 

Flat rate contribution as a compensation for lost of income from business activity shall be provided to the Applicants from both categories (A, B) in the following amount: 

• EUR 105 for loss in the March 2020 and 
• EUR 210 for loss in the April and May 2020.

Contribution shall be provided for every month in which conditions are fulfilled.

Filling an application - procedure

The application form is available on https://www.pomahameludom.sk and also on https://www.neprepustaj.sk (available only in Slovak). 

Provision of contribution simultaneously within measure 4A and 4B is not possible and applicant must choose only one possibility.

It is not possible to apply for Measure 2 and Measure 4 at the same time.

The Applicant submits the application to the respective Office of Labour, Social Affairs and Family (hereinafter referred to as the “office”), determined according to the place where self- employed activity is/was performed or is/was operated.

Unlike other aid groups (first, second and third) it is no longer necessary to attach a statement in order to receive the contribution.

Integral part of the application for both categories (A and B) shall be a declaration specific for each category. 

Declaration of the category A

In declaration of the category A the Applicant declares that: 

• as of 13 March 2020 (or as of 1 April 2020, or as of 01 May 2020) does not have any other income (from entrepreneurial, non-entrepreneurial or other dependent activity),
• is not receiving retirement pension, early retirement pension, invalidity pension, partial invalidity pension and pension paid to workers of some professions,
• was not an undertaking in difficulty as at 31 December 2019 (closer information on the undertaking in difficulty are available on following link in Slovak Undertaking in difficulty),
• meets the conditions stipulated in Section 70, par. 7 of the Act on Employment Services by following: 
  • fulfils tax obligation pursuant to the Act No. 595/2003 Coll. on Income taxes, as amended,
  • fulfils the obligations to pay advance public insurance levies, social insurance levies and obligatory old-age pension savings contributions,
  • is compliant with the prohibition of illegal employment for a period of two years prior to applying for the contribution,
  • does not have unpaid financial obligations towards the office,
  • it has not been declared bankrupt or wound up, has not been in receivership and does not have a reimbursement schedule pursuant to special regulations,
  • does not have outstanding claims of employees arising from their employment,
  • it is not prohibited to receive subsidies or to receive aid and assistance provided from EU funds, in case the employer is a legal person;
• there are no outstanding claims against this Applicant for repayment of aid on basis of former decision of European Commission declaring aid illegal and incompatible with the internal market, 
• is a subject existing and performing its business activity before 1st February 2020,
• does not have the obligation to pay sick and retirement insurance pursuant to the Act no. 461/2003 Coll. on social insurance as amended, and is not a subject to so-called levy holiday,
• its trading licence is not cancelled nor suspended.

Declaration of the category B

In declaration of the category B the Applicant declares that: 

• is a sole shareholder in a limited liability company (so called single person limited liability company), (i) with profit not exceeding of EUR 9,600 after taxation for last accounting period ending not later than on 31st December 2019, and at the same time (ii) its cumulative turnover was at least of EUR 2,400; In case the single-person limited liability company started to perform its business activity during the year 2019, (i) its profit after taxation for number of calendar months of performing activity shall not exceed the sum of EUR 9,600 /12x number of months of activity performance, and (ii) its cumulative turnover was at least of EUR 2,400//12x number of months of activity performance
• is a managing director in this limited liability company and is not its employee at the same time,
• is not a shareholder in any other limited liability company, 
• as of 13 March 2020 (or as of 1 April 2020, or as of 01 May 2020) does not have any income (from entrepreneurial, non-entrepreneurial or other dependent activity),
• is not receiving retirement pension, early retirement pension, invalidity pension, partial invalidity pension and pension paid to workers of some professions, 
• was not ab undertaking in difficulty as at 31 December 2019 (closer information on undertaking in difficulty are available on following link in Slovak Undertaking in difficulty),
• meets the conditions stipulated in Section 70, par. 7 of the Act on Employment Services by following: 
  • fulfils tax obligation pursuant to the Act No. 595/2003 Coll. on Income taxes, as amended,
  • fulfils the obligations to pay advance public insurance levies, social insurance levies and obligatory old-age pension savings contributions,
  • is compliant with the prohibition of illegal employment for a period of two years prior to applying for the contribution,
  • does not have unpaid financial obligations towards the office,
  • it has not been declared bankrupt or wound up, has not been in receivership and does not have a reimbursement schedule pursuant to special regulations,
  • does not have outstanding claims of employees arising from their employment,
  • it is not prohibited to receive subsidies or to receive aid and assistance provided from EU funds, in case the employer is a legal person;
• there are no outstanding claims against this Applicant for repayment of aid on basis of former decision of European Commission declaring aid illegal and incompatible with the internal market, 

The facts declared honestly by the Applicant may be subject to ex-post controls.

By confirming correctness and verity of submitted data in the application and its annexes, the Applicant shall be aware of consequences due to false declaration of the abovementioned facts, including criminal consequences (Section 221 Fraud, Section 255 Subsidy Fraud, Section 261 Damage to the Financial Interests of the European Union pursuant to the Penal Code No. 300/2005 Coll. as amended). 

The application shall be submitted without signature and it shall be submitted by electronic post (mail) or electronically by electronic mailbox (as a priority). In exceptional cases, the application can be sent by post office or delivered personally. 

The application for April 2020 shall be submitted until 31 May 2020. The Applicant submitting application for April or May shall submit the application by the end of calendar month, following the month for which the compensation is required.

Agreement of provision of financial contribution - signing and delivery

The contribution shall be provided to the Applicant without delay on basis of Agreement on provision of financial contribution (hereinafter referred to as the “Agreement”), which is sent by the office after delivery of application and control of its formal requirements. 

If the Agreement is sent to the Applicant via post office, it is delivered in two counterparts, one for each party to the Agreement. The office sends already signed Agreement to the Applicant. The Applicant shall subsequently sign the Agreement and send one counterpart also by post (in exceptional cases personally) back to the office. Second counterpart is for the Applicant. 

If the Applicant has active electronic mailbox for delivery, the office sends signed Agreement electronically through electronic mailbox.  The Applicant signs this Agreement by certified electronic signature and sends it back to the office via portal www.slovensko.sk. 

Please note, that the office will not accept documents signed by two methods at the same time. In other words - if the office signed the Agreement electronically, the Applicant cannot print the Agreement and sent it by the post, but it has to be also signed electronically.