The Government has announced a set of financial and fiscal measures to deal with the repercussions of the cantonment of citizens and the drastic drop in activity that results from it. The total amount of the envelope announced is 2,500 MD.
The aim of these measures is to avoid bankruptcies or permanent cessation of business activity, to maintain employment and to provide financial support to the poorest and the most affected businesses.
I/ Tax mesures
I-A Tax mesures intended for all businesses
All companies, regardless of size and sector of activity, will systematically benefit from the following measures:
I-B Tax mesures for the most affected companies
The concept of «companies affected by the repercussions of the coronavirus» will be defined by government decree after consultation with representatives of the monitoring unit to the government’s presidency.
The most affected companies are allowed to benefit from the following possibilities:
I-C Tax mesures intended for fully exporting companies
Exceptionally and only for the 2020 financial year, fully exporting companies can benefit from the authorization to sell their goods on the local market within the following new limits:
|EXPECTED TAX RETURNS DUE ON MARCH 25 AND 28, 2020|
With regard to the annual corporate income tax return, the deadline for filing is:
With regard to monthly declarations, the deadline of March 28 has not been extended and any filing beyond this date is subject to the payment of late interests.
|This interpretation is based on our current understanding of the measures taken. We are awaiting further clarification on this subject from the competent authorities in order to better inform our customers.|
II/ Financial mesures
II-A Direct financial aid (450 MD)
II-B Financial support for businesses (1.700 MD)
An envelope of 500 MD to increase the stock of basic products for public enterprises in medicines (PCT), food (OC) and petroleum (STIR).
- The 1st in the amount of 500 MD (including 100 MD to be released as the first tranche) for large companies, especially strategic, to strengthen their capital and maintain employment;
- The second of an amount of 100 MD is a bridging fund for a resumption of the holdings of the investment funds existing in the companies in difficulty in the strategic sectors, these funds will then be able to finance other projects;
- The 3rd of an amount of 100 MD to finance the acquisition of equipment for hospitals and public health establishments.
The CDC’s contribution will come at the expense of the Treasury, which was the main use of the Fund’s resources, which would force the State to resort even more to the financial system.
II-C Exemptions and financial support
-Postponement of repayments of bank loans over 6 months for employees whose salary is less than 1000 D per month. This measure relates to limited amounts because the credits for this population represent a small part of the total credits to individuals which are 24 billion dinars. It should therefore not be a problem for banks provided that other individuals continue to repay. It remains to deepen the case of BH which can hold a significant portfolio of construction loans for these households.
-Postponement of repayments of bank loans over 6 months for companies affected by the crisis. This measure, on the other hand, can relate to large amounts if it covers several sectors.
By way of illustration, the central clearinghouse accounts for 67 billion D in business loans, including 39 billion in the short term. Deferrals should be limited to the most affected among them to avoid suffocating the banking system.
Admittedly, the BCT has a possible margin for refinancing because the average need of banks for liquidity decreased from 16 billion dinars in early 2019 to 11 billion currently. This decrease took place over 12 months and helped reduce the inflation (from 7.3% to 5.8% in one year). A refinancing resumption is therefore expected to allow the banks to postpone the maturities of the affected customers but it would be limited to 5 billion D over a year if the objective is not to exceed the level of end 2018 considered high and inflationary. This amount represents 13% of companies' short-term loans only. For this, the carryover of credits must be targeted towards the companies most affected by the crisis.