Update COVID-19: Solidarity package: Emergency measures for mitigating the effects of the crisis

WILLEMSTAD - During a special press conference, the government announced a series of measures, or a so-called solidarity package to mitigate the effect of the crisis caused by the COVID-19 virus.

Prime Minister Eugene Rhuggenaat indicated that the coronavirus has an impact on the economy of the island. It affects the work of employers and their salary. “That is why it is important that we have a solidarity package that leads to relief. Especially for the hospitality and tourism sector.”

Prime Minister: “Three keys to our economy: the government, workers and employers. This must be balanced for our cash flow. We must find a system for this time, in times of crisis. Our economy is fragile.”

Rhuggenaath continued saying that the Minister of Economic Development and stakeholders have looked at the possibilities for financial support. “We want to keep as many people as possible at work. It will have many effects worldwide and locally in the coming months. We must adapt to this.”

Below you will find the solidarity package translated into English. If there are questions you can always contact Curaçao Chronicle through info@curacaochronicle.com.

 

Solidarity package:Emergency measures for mitigating the effects of the crisis due to the COVID-19 virus

 

Curaçao against COVID-19!

 

The table below summarizes the activities already undertaken by MEO.

 

Emergency measures by MEO towards the recovery phase of

Businesses

 

Private Sector

 

Self-employed Entrepreneurs

 

Responsible 

Minister

 

1.   Payment arrangements with Aqualectra for the needy.

 

X

X

X

MIN EC.DEV.

2. Temporary regulations introduced with maximum prices

for hygienic products (hand sanitizers, latex gloves, disinfectant sprays, antibacterial wipes and alcohol,) and fruits and vegetables with a high vitamin C content.

 

X

X

X

MIN EC.DEV.

3. Financial institutions and insurance companies are approached to argue that

special provisions are offered to those who have been financially affected by the COVID crisis,

and therefore, need some flexibility in fulfilling their regular obligations

 

X

X

X

MIN EC.DEV.

4.Owners and managers of commercial properties were requested temporary suspension of payment of rent for commercial properties.

 

X

 

X

MIN EC.DEV.

5.Establishment of an online support center for the

business (Mi Negoshi) and a one-on-one e-commerce support program (for small and medium-sized businesses). ANG 1 million is available for this. Promotion of e-commerce and working from home

safeguarding business continuity on digital / virtual instead of closing. Project becomes

drawn by CITI.

X

 

X

MIN EC.DEV.

6. The launch by the Chamber of Commerce of a support program to support companies in these difficult times.

 

X

 

X

MIN EC.DEV.

7. Establishment of "Fondo di sosten pa empresa mikro, chiki, mediano (MCM Fund) "by private sector in collaboration with Korpodeko, OBNA , Ministry of Economic Development and other stakeholders in support of freelancers and a small company so that it can survive including tax deduction for participating funders.

X

 

X

MIN EC.DEV.

8. Close contact between the Ministry of Economic Development and unions to be able to respond immediately to any possible abashments and to make translations available to support the tourism industry.

X

 

X

MIN EC.DEV.

9. The launch by the Ministry of Economic Affairs Development of "KLA PA TURISMO" 2.0, whereby hospitality training will be given digitally to stakeholders within the tourism sector.

X

 

 

MIN EC.DEV.

 

The Minister of Finance will implement a series of tax incentives for entrepreneurs and workers to offer a financial breathing space.

Tax support measures April - June 2020

 

Businesses

 

Private Sector

 

Self-employed Entrepreneurs

 

Responsible 

Minister

 

1. Current payment arrangements (deferred payment) can be suspended on request.

x

x

x

MIN FIN

2. The Compliance project will be suspended.

x

x

x

MIN FIN

3. Recovery interest for all tax debts reduced from 6% to 0%.

x

x

x

MIN FIN

4. Collection/Recovery costs will be set to ZERO (it won't be charged).

x

 

x

MIN FIN

5. Fines for late or non-payments won't be imposed.

x

x

x

MIN FIN

6. Possibility to set up new payment arrangements for all taxes and non-taxes for affected companies and self-employed persons in liquidity problems.

x

x

x

MIN FIN

7. Payment of the employer's contribution to AOV premiums / AWW will be omitted for employers in the Hospitality sector, beauty salons, travel industry, car rental companies, car wash and transportation.

x

 

x

MIN FIN

8. Sales tax allowance for entrepreneurs in the Hospitality sector, beauty salons, travel industry, car rental companies, car wash and transport. Sales tax will be withheld but it does not have to be paid.

x

 

x

MIN FIN

9. Lower rate of import duties and sales tax to 0% on hygiene and sanitary / cleaning products.

x

x

x

MIN FIN

10. The basic discount in income tax will be adjusted / increased retroactively for the year 2020 to January 1, 2020.

 

x

 

MIN FIN

 

Below are the activities that are currently being initiated by the Ministry of Social Affairs (SOAW).

 

Financing via Management Budget 2020 / Social Development Agenda Curaçao (SOAC)

Action

Content

Amount

1. Emergency food and hygiene package resources. 

 

• Emergency package of ANG 50, to be provided weekly

• Intended for 550 families based on established criteria

• Implementing organization: Food Bank

 

ANG 110,000

for 1 month

 

2.   Emergency hygiene package

 

• Emergency package of ANG 16, - with hygienic items in connection with Coronavirus, to be provided monthly to 7,200 welfare recipients

• Implementing organization: Kas di Bario

 

ANG 115,200.00 for 1 month

 

3. Project "Tur mucha mester kome"

 

• Children of 500 vulnerable families

• Implementing organization: Fundashon Tur mucha mester kome

• SOAC project: sector Family & Youth

 

ANG 500.000,- (SOAC)

 

4. Debt mediation - financial effects

 

• Debt mediation on application

• Implementation organization Center for Family & Youth

 

ANG 100.000,-

 

5. Tips for recognizing and dealing with stress in crisis situations

 

• Signpost with Instruction for recognizing and dealing with families and youth

• Framework of working groups (IVRK) in collaboration with Ministries Jus / OWCS / GMN

• Implementing organization: Sector Family & Youth

 

ANG 100.000,-

 

6. Helpdesk to raise awareness for social - emotional problems and online / also free access to call lines

• Implementing organization: Center F & J

 

ANG 50,000.

 

7. Information campaigns and courses through media. To bridge this period, it will be necessary to inform the families and offer them various alternative time commitments, this is also for the prevention of violence.

 

Themes are:

• Violence can be prevented

• What can I still do?

• How do I pay attention to my old parents, aunts and

other family members?

• How do I say goodbye to my loved ones?

• How can I organize myself for work at home?

• Healthy Leisure for the whole family

• What to do in the event of a conflict with my boss?

• How can I help someone in quarantine?

• Implementing organization: Platform IVKR, SIGE, PSI,

Sector F & J, GMN

 

ANG 250.000,-

 

8. Communication and information of labor aspects (helpdesk)

 

• Implementing organization: Sector Labor i.s. m. Min. AZ and Min MEO

 

ANG 250.000,-

 

9. The Visit of single elderly people

 

• Implementation organization: SOAW in collaboration with the police

 

Staff deployment

 

10. Compulsory admission of holidays with retention of salary

 

• Employees & employers with possible mediation of the Ministry of SOAW

 

Staff deployment

 

TOTAL                                                                                             ANG 1,325,200

 

The tax facilities lead to the following budgetary effects

Tax support measures April - June 2020 (3 months)

 

Businesses

 

Private Sector

 

Self-employed Entrepreneurs

 

Loss of MMNAf.*

Calculated based on of year figures 2019

 

1. Current payment arrangements (deferred payment) can be suspended on request 12.4

x

x

x

12.4

2. The Compliance project will be suspended.

x

x

x

6.0

3. Recovery interest for all tax debts reduced from 6% to 0% 0.8

x

x

x

0.8

4. Collection/Recovery costs will be set to ZERO (it won't be charged)

x

 

X

0.4

5. Fines for late or late payments won't be Imposed

x

x

x

3.1

6. Possibility to set up new payment arrangements for all taxes and non-taxes for affected companies and self-employed persons in liquidity problems.

x

x

x

PM*

7. Payment of the employer's contribution to AOV premiums / AWW will be omitted for employers in the Hospitality sector, beauty salons, travel industry, car rental companies, car wash and transportation.

x

 

x

2.9

8. Sales tax allowance for entrepreneurs in the Hospitality sector, beauty salons, travel industry, car rental companies, car wash and transport. Sales tax will be withheld but it does not have to be paid.

X

 

X

8.3

9. Lower rate of import duties and sales tax to 0% on hygiene and sanitary / cleaning products.

X

X

x

0.2

10. The basic discount in income tax will be adjusted / increased retroactively for the year 2020  to January 1, 2020.

 

x

 

PM*

 

* PM or token means that the item could not be filled at the moment.

 

That will happen at a later stage.

 

 

 

 




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