State of Emergency – Measures to Support Economic Activity

DISEASE ALLOWANCE FOR ISOLATION, IMPOSED BY THE HEALTH DELEGATE

This measure applies to workers who work on behalf of others and self-employed workers. They are entitled to sickness benefit, amounting to 100% of their remuneration. The benefit has a maximum duration of 14 days.

EXCEPTIONAL FAMILY SUPPORT FOR EMPLOYEES

It applies to Workers who work for third parties and who are absent from work due to assistance to children or other dependent children, under 12 years old, or with chronic disability / illness regardless of age, resulting from the closure of the educational establishment determined by:

Health authority decision

Government decision

The worker is entitled to exceptional support corresponding to 2/3 of his basic remuneration, that is, he does not include other components of the remuneration.

This support has a minimum limit of 1 Guaranteed Minimum Monthly Remuneration (value: 635 €) and a maximum limit of 3 times Guaranteed Minimum Monthly Remuneration(value: 1,905 €) and is calculated according to the number of days absent from work.

Support does not include the school holiday period, being granted between 16 and 27 March. In the case of children who use social facilities to support early childhood or disabilities, support is granted until 9 April. There can be no overlap between periods between parents.

EXCEPTIONAL FAMILY SUPPORT FOR INDEPENDENT WORKERS AND DOMESTIC SERVICE

It applies to self-employed and domestic workers who are unable to perform their activities for reasons of assistance to children or other dependent minors, under 12 years of age, or with chronic disability / disease, regardless of age, resulting from the closure of the educational establishment determined by :

Health authority decision

Government decision

Only the self-employed person who has had a contributory obligation in at least 3 consecutive months is entitled to support.

The self-employed person is entitled to financial support corresponding to 1/3 of the monthly contributory tax base of the first quarter of 2020, with the following limits:

Minimum limit = 1 Social Support Index (IAS) (value: € 438.81)

Maximum limit = 2 and ½ Social Support Index (IAS) (value: 1,097.02 €)

The domestic service worker is entitled to financial support corresponding to 2/3 of the contributory tax base.

Support does not include the period of school holidays, being granted between 16 and 27 March. In the case of children using social facilities to support early childhood or disabilities, support is granted until 9 April.

There can be no overlap between periods between parents.

EXTRAORDINARY SUPPORT FOR REDUCING THE ECONOMIC ACTIVITY OF INDEPENDENT WORKERS

This measure applies to Independent Workers, who in the last 12 months have had a contributory obligation for at least three consecutive months and who are in a proven situation to interrupt their activity or the activity of the respective sector as a result of the outbreak of COVID.

You are entitled to a financial support corresponding to the amount of the remuneration recorded based on the contributory incidence, with the limit of 1 Social Support Index (IAS) (€ 438.81).

You also have the right to defer payment of contributions for the months you receive support. Financial support lasts 1 month, extendable up to 6 months.

Deferred payment of contributions starts in the second month after the end of support and can be paid in parcels (up to 12).

ASSISTANCE TO SON / GRANDCHILD FOR PROPHYLATIC ISULATION, TAXED BY THE HEALTH DELEGATE

This measure applies to workers absent from work due to the prophylactic monitoring of children or other, under 12 years old or with a chronic disability / illness, regardless of age, certified by the health officer.

You are entitled to a child / grandchild care allowance, amounting to 65% of the remuneration. With the entry into force of the State Budget for 2020, this value becomes 100% of the remuneration.

The allowance has a maximum duration of 14 days. See more information on procedures in the full document:

https://www.seg-social.pt/documents/10152/16722120/Medidas+Excecionais+no+%C3%A2mbito+da+Crise+COVID-final.pdf/fe186ada-5a4b-4421-93f2-43e8d0dc6d08

SIMPLIFIED LAY-OFF

1 -APOIO EXTRAORDINÁRIO À MANUTENÇÃO DE CONTRATO DE TRABALHO EM SITUAÇÃO DE CRISE EMPRESARIAL

It is a financial support per worker, attributed to the company, destined exclusively to the payment of wages.

A company in a situation of commercial crisis, considered as such, is entitled in the following cases:

-Full stop of the company’s activity, or establishment that results from the intermittency or interruption of global supply chains or the suspension or cancellation of orders;

-The abrupt and sharp drop of at least 40% of the billing, in the 60 days prior to the request with the Social Security with reference to the same period or, for those who started the activity less than 12 months ago, the average of that period.

And that the company’s contributory situation is regularized with Social Security and the Tax and Customs Authority.

2 -TEMPORARY EXEMPTION FROM THE PAYMENT OF CONTRIBUTIONS TO SOCIAL SECURITY

2.1 ENTIDADES EMPREGADORAS

Employers within the scope of the measures provided for in this Ordinance are also entitled to an exemption from the payment of Social Security contributions by the employer, in relation to their workers and members of the statutory bodies, during the same period, which is not officially recognized.

Employers send autonomous remuneration declarations to the covered workers and pay the respective contributions, in the part that concerns only the worker, that is, 11%.

2.2 INDEPENDENT WORKERS

The right to exemption also applies to self-employed workers, however, the obligation to submit the quarterly statement remains.

See more information on procedures in the full document:

https://www.seg-social.pt/noticias/-/asset_publisher/9N8j/content/medidas-de-carater-extraordinario-e-temporario-para-apoio-imediato-aos-trabalhadores-e-empresas-instituto-de-seguranca-social-da-madeira-ip-ram

https://dre.pt/application/file/a/130251740

TAXATION

Extension of the deadline for compliance and payment of tax obligations related to IRC (Corporate Income Tax)

-The postponement of the Special Payment on Account from March 31 to June 30;

-The extension of the delivery of the Model 22 (IRC (Corporate Income Tax) Declaration + Payment / settlement) to July 31; and

-The extension of the first payment on account and the first additional payment on account from July 31 to August 31.

Flexible tax payments for companies and self-employed workers

1. Immediate payment, in the usual terms;

2. fractional payment in three monthly parcels without interest; or

3. fraccional payment in six monthly parcels, with interest on late payments being applied only to the last three.

This measure covers the payments of VAT (in the monthly and quarterly regimes) and the delivery of withholding taxes to the State of IRS (Income Tax on Individuals) and IRC (Corporate Income Tax) and is applicable to self-employed workers and companies.

See more information on the companies and workers tabs at:

ps://covid19estamoson.gov.pt/medidas-excecionais/

FINANCING

Linha de Crédito Capitalizar -“Covid -19 -Plafond de Tesouraria”

Objective: To induce the offer of credit in the form of a credit ceiling in a revolving system, giving greater flexibility to treasury management.

Eligible Operations: Operations designed exclusively to finance treasury needs.

Maximum Financing per Company: € 1.5 million.

Maximum Term of Operation: Up to 3 years.

Fixed Rate Interest Rate: Swap Euribor for the term of the operation + spread.

Interest Rate Variable Mode: Euribor at 1, 3, 6 or 12 months + spread.

Spread: 1.943% -3.278%.

Interest Rate Bonus: 0%

Linha de Apoio à Tesouraria para Microempresas do Turismo -Covid-19

Objective: To support the financing of tourist micro-enterprises that show a reduced capacity to react to the strong retraction of demand that has been registered.

Eligible Operations: Financing of Treasury needs.

Maximum Financing per Company: € 750 per month, for each job in the company on February 29, 2020, multiplied by three months up to € 20,000.

Capital Reimbursement: Equal quarterly installments.

Maximum Term of Operation: Up to 3 years.

Maximum Capital Grace Period: Up to 12 months

Interest Rate Bonus: 0%.

Adhering banks to contact

Abanca Corporacion Bancaria, S.A. -Sucursal em Portugal

Banco Bilbao Vizcaya Argentina, S.A. -Sucursal em Portugal

Banco BPI, S.A.

Banco Comercial Português, S.A.

Banco Português de Gestão, S.A.

Banco Santander Totta, S.A.

Caixa Central de Crédito Agrícola Mútuo, CRL

Caixa de Crédito de Agrícola Mútuo de Leiria, CRL

Caixa Económica Montepio Geral

Caixa Geral de Depósitos, S.A.

Novo Banco, S.A.

Banco BIC Português, S.A.

Novo Banco dos Açores, S.A.

Bankinter, S.A. -Sucursal em Portugal

Caixa de Crédito Agrícola Mútuo da Chamusca, CRL

Caixa de Crédito Agrícola Mútuo de Mafra,CRL

https://financiamento.iapmei.pt/inicio/home/pesquisa?texto=Covid