In 2020, the COVID-19 pandemic has brought with it infinite consequences worldwide, especially in the socioeconomic framework, with micro, small and medium-sized enterprises being one of the most affected sectors. The latter has forced them to modify and readjust their business models and adapt to this “new normal”.
According to the survey carried out by the Ministry of Industry and Commerce in June of this year 2020, 79% of the MSMEs surveyed were forced to cease their operations completely, 19% had to do so partially and the other 2% are operating at the same or greater capacity. It should be noted that nearly 70% of the total of this productive sector have private loans.
Faced with this crisis, the State has been forced to dictate measures to safeguard the rights of employees and provide support to business owners in order to guarantee the sustainability of companies.
In fiscal matters, during the first quarter of the current year, several measures were implemented, among which we list the following:
The segmentation of the liquidation of the annual income tax of companies with a fiscal year-end in December;
The flexibility of the payment of advance commitments of the entire private sector; and,
The extension of deadlines for tax returns. Likewise, the allocation of ten billion Dominican pesos was ordered to be made available for loans to MSMEs and businesses, the creation of a Guarantee Fund and financing to benefit the aforementioned sector.
In turn, through decrees numbers 143-20 and 185-20, social assistance programs for the labor/business sector were created, called the Fund for Solidarity Assistance to the Employee (FASE), STAY AT HOME and PA’TI, whose execution periods were extended by the current president, Luis Abinader Corona, through decree number. 358-20, until December of this year.
We are facing an unprecedented situation in the last century and both the measures to be taken and the determination of the damages caused by this pandemic are still in full development. This is why it is necessary to keep ourselves informed and monitor the legal and economic development of the situation.
