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Category: News

First Phase of Incremental Reopening of Economy Begins on May 20th

Economy Reopening:

  • Micro companies (10 employees) can work with no more than 5 employees.
  • Small companies (10-50 employees) can reopen with no more than 50% of their employees.
  • Medium and large companies can reopen with no more than 25% of their staff.

Public institutions will work with 50% of their employees and could increase this percentage if necessary.

  • Measures regarding Transportation and Transit:
  • Public transportation will run from 6:00 a.m. to 6:00 p.m.
  • Private collective transportation will be allowed to begin servicing in the next phase.
  • Full border closure is maintained.

Sector-specific Reopening Schedules:

  • Supermarkets, pharmacies, construction sector, free-trade zones, ports, airports (only for ferry flights), industrial sector and agricultural companies will begin operations at 7:00 a.m.
  • Public sector activities will start at 8:00 a.m.
  • Hardware stores, vehicle dealerships, financial sector, furniture and electrical appliances stores, service sector companies, textile stores, among others, will begin operations at 9:00 a.m.

The National Export Free Zone Council (CNZFE)’s Announcement on Companies Reactivating their Operations

The National Export Free Zone Council (CNZFE) announced on April 7th , 2020, that all companies within the sector planning on reactivating their operations would have to formally submit a reactivation of operations' request before the CNZFE on company letterhead with the following information:

  • Date of reactivation of operations.
  • Justification for the re-opening.
  • Workers who will be reinstated.
  • Workplace area measures.
  • Distancing and hygiene protocol to be enforced to contain the spread of the COVID-19, such as: mandatory temperature monitoring, use of face masks, workplace clean-up and hygiene measures in all areas and including for employee transportation companies. The CNZFE has 48 hours to process the request.

The Dominican Tax Office (DGII) Temporarily Exempts VAT (ITBIS) Payment on the Following Medical Products

  • Hydrogen peroxide (oxygenated water), even solidified with urea.
  • Rubber surgery gloves and disposable gloves for use in medical examinations and laboratories.
  • Non-woven fabric masks and clothing used exclusively in hospitals, including disposable ones.
  • Medical, surgical, or laboratory sterilizers.
  • Breathing devices (resuscitators) and tomography equipment managed by an automatic data processing or treatment machine.
  • Thermometers for clinical treatment or data processing.

This measure is effective as of 4/14/2020 and will remain in force during the state of emergency period.

New Tax Relief Measures by the DGII to Lessen the Economic Impact of COVID-19 in the Dominican Republic

1. New deadlines for filing and payment the following obligations:

  • Other Withholdings and Supplemental Wages (IR17) dated 4/13/2020 are extended until 4/24/2020.
  • The following payment obligations extended until 5/29/2020: The Corporate Asset Tax’s second installment, Individual Persons and Undivided Estate Income Tax (IR-1) and the first installment of Income Tax under the Simplified Income Tax Regime based on income, natural persons and agricultural sector as well as the Income Tax based on income, legal persons and purchases as of 4/30/2020.

2. Taxpayers may pay their March VAT (ITBIS) in up to 3 installments, without any interest or surcharges. These new authorizations for payments will be generated automatically when the VAT Affidavit with deadline 4/20/2020 is filled.

3. Taxpayers may pay their March excise tax on alcohol and tobacco products in up to 3 installments, without any interest or surcharges. Authorizations for payment will be generated automatically when the excise tax on alcohol and tobacco products Affidavit with deadline 4/20/2020 is filled.

Income Tax Advance Exemptions and Deferral of Both Payment Agreements and the Entering Into Force of Law 46-20

  • Taxpayers, including corporate entities and sole proprietorship, with monthly obligation to pay Income Tax advances are exempt from payment of said advance for the March 2020 fiscal period. This provision does not apply for large taxpayers, except for those whose business have been ordered to shut down during the State of Emergency.

 

  • A three-month extension is granted for taxpayers with payment agreements in force as of 3/19/2020, applicable to installments with closing dates in April, May and June 2020.

 

  • Law 46-20 on Voluntary Wealth Disclosure is deferred until further notice. This statute establishes a special and transitory tax amnesty for taxpayers to voluntarily disclose or reassess all their movable and real estate properties located in the country or abroad.

President Danilo Medina Issues Decree That Modifies the FASE Program

1. The FASE program will grant a maximum financial aid of RD$8,500 to employees in companies who have shut their operations and have had their employees furloughed, as long as their employers are up to date with their Social Security contributions for the period of February 2020. Employees in the following sectors will not able to benefit from the FASE program:

  • Supermarkets, grocery stores, pharmacies and any commercial store dedicated to the sale of raw food, medicines and hygiene products.
  • Logistics, distribution and transportation companies of raw materials and finished products for the agro-industry and food.
  • Agriculture, livestock and fishing companies.
  • Food industry.
  • Private security companies.
  • Mining.
  • Financial sector, pension fund administrators, labor risk administrators and insurance sector.
  • Energy sector.
  • Healthcare industry.
  • Telecommunications.
  • Among others.

2. Manufacturing companies and micro, small and medium-sized companies, which continue to operate with the Ministry of Labor’s authorization, will temporarily receive RD$5,000 per employee to help them meet their payroll obligations. The rest of the salary must be covered by the employer.
3. To qualify for the FASE program for the benefit of employees which will be kept on payroll, companies must not furlough employees during the following month. Furloughed workers, on the other hand, will be allowed to take advantage of the program’s benefits.
4. The Ministry of Labor may authorize FASE benefits to companies that have shut down their operations but have kept all their employees on payroll and are up to date with their Social Security contributions.
5. For furloughed employees, employers must start the process online by filling the DGT-9 form at the Ministry of Labor’s website, while that for the reduced working hours can fill out the DGT-4 form; both at the SIRLA site.
6. FASE will be active for a maximum of 60 days from 4/2/2020.

New Measures for Employers and Employees 

  • During the months of April and May, the Ministry of Labor authorized the Security Treasury not to apply additional charges or interests to employers that are not able to make the corresponding contributions to their employees on time.
  • During the emergency period and up to 30 days later, a waiver will be granted for employers to register their workers without the escalation provided in Resolution 471-02 of the National Council for Social Security Fund.

This measure will also apply to those who will benefit from the FASE program established by the government to support workers who have had difficulties to maintain their operations.

Additional Measures Taken by the Judicial Branch Council

The Judicial Branch Council recently announced their latest measures in response to the COVID-19 pandemic:

  • Approval of a Court Coordination Regulation applicable to all Courts nationwide, which establishes mechanisms to improve case distribution and streamline processes.
  • Designation of eleven coordinating judges at all Judicial Departments, who during the state of emergency will be responsible of ensuring that fundamental rights and due process are respected and making sure that the normal flow of work is maintained at the Criminal Jurisdiction’s Offices of Permanent Attention Services offices. After the state of emergency is lifted these judges will oversee the proper functioning of all Courts under their territorial judicial
    Department.
  • Approval of the videoconferencing guide for the celebration of remote hearings for cases submitted, during the state of emergency, before the Criminal Jurisdiction’s Offices of Permanent Attention Services offices, while guaranteeing the parties’ fundamental rights.