Labor Measures
- COVID 19 emergency donation: It is a special donation that is part of the Government’s Economic Emergency Plan, and which aims to support the most vulnerable families in the health contingency by Covid-19.
- Suspension of the employment contract with pay: Aimed at employers who need to take advantage of the employment protection law because, due to the health emergency, their activities were affected:
- Suspension of the employment contract by act of authority: it is applied when the health or safety authority orders the total or partial cessation of activities (for example, in the quarantine that some communes are living due to the coronavirus) and allows workers to access their remuneration through Unemployment Insurance (70% the first month).
- Agreement to suspend the employment contract: the employers who are affected by their activities due to the health emergency caused by COVID-19, may agree with their workers, individually or collectively, a pact of temporary suspension of the employment contract. This agreement will allow workers to access their remuneration through Unemployment Insurance (70% the first month).
- The duration of the agreements will depend on the type of work:
- Three months (continuous) in the case of workers with a fixed-term contract, for work, task or service.
- Five months (continuous) for male and female workers with an indefinite contract.
Financial measures
- Line of credit to banks with state guarantee for loans: Consists of a guarantee plan for up to USD $ 3,000 million to mobilize credit for companies with annual sales of up to 1 million UF.
- Income protection plan: Consists of creating a fund to protect the income of the most vulnerable.
- Incorporation of Central Counterparty Entities and Savings and Credit Cooperatives that comply with regulatory and supervisory standards in the liquidity facilities of the Central Bank.
Taxation measures
- Postponement of VAT payment for the next 3 months for all companies with sales below UF 350,000, making it possible to pay in 6 or 12 monthly installments at zero real interest rate, depending on their size.
- Anticipation of the income tax refund corresponding to SMEs, which materialized in April.
- Suspension of the monthly provisional payments (PPM) of the corporate income tax for 3 months.
- Postponement until July 2020 of the payment of income tax for SMEs according to what they declare in the April income operation.
- Postponement of April tax payments for companies with sales of less than 350,000 UF and for people with properties with a tax assessment of less than CLP $ 133 million. The deferred tax will be paid in three installments, along with the following three contribution installments, with a real interest rate of 0%.
- Transient release from April of stamp duty and stamps at 0% for all credit operations during the next 6 months.
- Relief measures for the treatment of tax debts with the General Treasury of the Republic (TGR) focused on SMEs and people with lower incomes: flexibility to enter into tax debt payment agreements with TGR, without interest or fines from April .
- All the expenses of the companies associated with facing the health contingency will be accepted as a tax expense.
- The Chilean tax authority materializes exceptional return of withholding’s from January and February to 630 thousand independent workers at honorarium
Measures taken by various companies
- P&G Chile donates 270,000 hygiene and household products to vulnerable families and medical personnel through 2 initiatives.
- Viña Garcés Silva launches a campaign to support restaurants, by donating a percentage of their online sales.
- Automotive distributor SALFA launches platform for online purchase.
- The Komatsu Cummins Chile Group, a provider of solutions for mining, construction and forestry, decided to accelerate payment to all of its SME suppliers, paying all invoices in advance. This meant for that company an early disbursement of 3,317 million Chilean pesos.
- Coca-Cola strengthened its online sales channel.
- Casaideas enables online sales channel.
- Gimnasio Pacific announced the obtaining of a bank loan for CLP $280 million for the purchase of 104 sanitation tunnels.
- The Christus UC health network and the fuel distribution company COPEC carry out the campaign to apply the PCR test (to detect coronaviruses) “without leaving the car”.
- The Chilean subsidiary of hearing products GAES makes its debut in e-commerce.
- Walmart reinforces its digital channel and announces measures paid by e-commerce.
- The mining company BHP creates a USD $ 25 million fund to support contractor companies.
- Cabify announces the delivery of microcredit to driving partners.
- Agrosuper makes available a complex with 200 beds in Freirina.
- 3M delivers 200 thousand masks to the Supply Center of the National System of Health Services (Cenabast)
- The CCU company delivers to the Ministry of Health the first batch of gel alcohol made with raw material from beers.
NOTE: 1 UF= CLP $ 27,658 = USD $ 0.30 1 USD = CLP $ 850.41Click here to learn more.
