Presidential Decree No. 98/20, of 9 April 2020, approved immediate measures to alleviate the negative economic and financial effects of the Covid-19 pandemic.

The following measures were adopted for companies in the manufacturing sector: (i) the deadline for reporting obligations in respect of Industrial Tax was extended to 29 May 2020 for Group B companies; (ii) the deadline for reporting obligations in respect of Industrial Tax was extended to 30 June 2020 for Group A companies; (iii) a 12-month tax credit was granted to companies in respect of the amount of VAT payable on the importation of goods and raw materials used in the production of the 54 goods referred to in Presidential Decree No. 23/19, of 14 January 2019; (iv) the deferment was authorized of the payment of the social security contribution (8% of the total payroll) relating to the 2nd quarter of 2020, to be paid in six monthly instalments during the months of July to December 2020, without interest.

Also approved were financial support measures to maintain minimum levels of activity for micro, small and medium-sized companies in the manufacturing sector.

The following measures were approved to remove excessive bureaucracy affecting businesses: (i) companies are no longer required to carry out statistical registration; (ii) the issuance of a commercial license is now only required for the marketing of foodstuffs, live species of plants, animals, poultry and fish, and medicines, as well as for the sale of automobiles, fuel, lubricants and chemical products, while all other commercial and service-provision activities are only required to apply to the respective Municipal Administration for authorization to open an establishment; (iii) companies are no longer required to license, with the BNA and the Ministry of Economy and Planning, contracts relating to management, service provision and foreign technical or management assistance.

Also published was the credential form that employees of private sector companies, whose activity is not suspended, must present upon request to the authorities when circulating.

The following measures have been presented for private individuals and the protection of family welfare: (i) private sector employers must transfer to employees' salaries the amount of the discount to social security (3% of the employee's salary) in April, May and June 2020; (ii) water and energy supply companies must not cut off supplies to customers who have difficulties paying their bills during the month of April; (iii) campaigns to distribute the basic food basket will be carried out together with the Provincial Governments.

Finally, the new statute also mentions measures to accelerate the transition from informal activity to the formal sector.

Presidential Decree No. 273/11, of 27 October 2011, which approved regulations on the hiring of foreign technical assistance or management services, and Decree No. 92/82, of 18 October 1982, which created the unique register of companies and approved its regulations, are repealed. Also repealed are Article 10.1, Article 27.1 and Article 34 of Presidential Decree No. 193/17, of 22 August 2017, approving regulations for the licensing of establishments and commercial activity and market services.

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