On March 18, 2020, a state of emergency was decreed in Portugal, through the Decree of the President of the Republic no. 14-A / 2020, of March 18.The exceptional situation and the proliferation of registered cases of contagion of COVID-19 requires the application of extraordinary and urgent measures to restrict rights and freedoms, especially with regard to movement rights and economic freedoms.
This series of articles (State of Emergency) brings together the economic measures already published over the past few days, more precisely until the 19th of March. Further measures are expected under the state of emergency decree. We begin by mentioning the activities that are required to close and that are automatically candidates for available support. On the other hand, the list of activities that are required to operate according to some rules to avoid contagion. Finally, the remaining companies that are not obliged to close but whose service to the public, will have to be at the door of the establishment or through a pharmacy-type wicket or gas station after hours.
About the diversification of support, we begin by presenting those of a social nature from the perspective of the employee and the self-employed. These supports are characterized by support for the family resulting from the closure of schools, support by prophylactic isolation and support by reducing or stopping the self-employed person’s activity.
For companies, the support is related to: the maintenance of jobs, called simplified lay-off, the flexible payment of taxes through deferral and the possibility of being paid in installments and the ease of financing at reduced rates and with a 12-month grace period.
In our opinion, for those who believe that the crisis will not be long and want to keep the work team at the time of the resumption, they should adhere to the simplified lay-off and contract funding to reinforce treasury if necessary. Immediately, financing is the fastest way to obtain liquidity since receiving the support from the lay-off may take a few weeks or even a few months.
See detailed information of the Order of Accountants: