Government aid to save businesses to save jobs.

The national government, after the declaration of economic emergency, adopted several particular measures (+150 decrees) aimed at preserving people’s lives, and controlling the spread of Covid-19. These measures have affected people’s lives and very importantly the operation of companies. The main effect on companies has been their decrease in the level of sales in most sectors. Some have been affected more than others; however, they have all been affected. That is why it has established a series of government aid to save businesses and thereby save jobs.
After serving the first few months of isolation and reduction of business activities, employment has been the main injured. That is why a number of government aid has been created so that companies can sustain operations and thus sustain jobs.

Entrepreneurs have been forced to sail, in turbulent areas.

However, they have had to make decisions with great uncertainty.

In particular, some of the doubts they have had to face are:
  • What will be the duration of quarantine, is it special, for those aspects that prevent or limit the sales of the business on site and production at headquarters?
  • Should employees be suspended, fired, or kept?
  • How productive will they be at a job at home?
  • What to do with other monthly or recurring payment obligations? Lease, credits, subscriptions, among others.
  • With gradual entry, will the business remain viable, especially if production capacity is reduced as a product of security protocols? Should you reduce jobs? or reduce the days?
  • How will demand respond after gradual opening? When to reach a break-even point?
  • In times of crisis, what to do with falling incomes?
Likewise, the National Government decreed measures to reduce the impact on companies (government aid), that is, to give relief to the corporate box. At the same time, do not affect the collection of taxes that allow further development of social investment programmes.
The government and Senate have suspended the fiscal rule as a mechanism to create debt needed to deal with the crisis.

What are the rescue measures offered by the Government?

And which ones do I want to take advantage of the Company?

The following are some of the government’s aid to save businesses, jobs, and the credits of these companies:

  1. Formal employment support program, premium payment. Fixed amount
    1. Are these trading income?
    2. It is calculated on the minimum wage.
    1. 3 days without VAT non-technical characterization goods. They are doubts, for lack of clarity in the categories. It encourages e-commerce goods, it cannot control restrictions.
    2. Reduction of VAT on leases for the duration of Quarantine
  2. Tax payment agreements, with interest rates less than a current bank rate, from a default interest. Forgive default interest and penalties and pay up to 80% of the capital
  3. Express returns balances in favor of taxpayers. Very good for speeding up cash availability. It is no longer available, as an option.
  4. Suspension of terms (term and term) for the duration of quarantine.
  5. Business reorganization processes so that viable companies do not fall into the possibility of being liquidated. I develop the special insolvency procedure with fiscal connotation.
    1. It seeks to give relief at the checkout, exemption from withholding tax, advance income and presumptive rent until December 2020.
    2. New express tax payment agreements for companies in reorganization.
    3. Access to funding
  6. Development of online channels, for tax processes with the DIAN
  7. Changing deadlines for paying taxes
Decretos de gobierno

Objective: Hold the box!

>> Also learn about our productivity consulting services
As administrators we know that every business, you need to sustain its survival, for this the alternatives are: Subscribe debt, reach new markets, create new products or lower operating costs. At OBC Partners we help you develop them all.

This post is also available in: Español (Spanish)