Decree Number 557 intends to take economical and tax related measures to relieve economic burden to some companies and charity and social solidarity organizations in the context of the economic emergency caused by COVID-19. Specifically, micro and small business as well as associations and solidarity non-profit organizations, will have special discounts applicable to the payment of administrative fees before the sanitary authority, INVIMA.This measure applied to proceedings related to the issuance, amendment, renewal of sanitary registrations of products comprehended in Section 1 od Decree 507 dated April 1, 2020, namely, those catalogued as products of first need by the Ministry of Health and Social Protection, the Ministry of Commerce, Industry and Tourism or the Ministry of Agriculture and Rural Development.

Likewise, the discount in the fees applied by the INVIMA, would apply to the issuance, amendment and renewal of sanitary registrations of pharmaceuticals, cosmetics, medical and surgical devices, biomedical devices, phitotherapeutic goods, in-vitro diagnostic reagents, which are useful for the prevention, diagnosis or treatment of COVID-19.

The discount measure is transitory and in principle should only apply until August 31, 2020. The discount should favor micro businesses that would only pay 25% od the current fees applicable, and to small businesses which should only 50%.

As exceptions, Decree 577, establishes: (i) the discount measure is not applicable to micro, small and medium business as well as associations an solidarity non-profit organizations which are subordinated to a medium or large company, or belong to a corporate group, further to Sections 260 and 261 of the Code of Commerce. (ii) Businesses that benefit from the discount will not be able to assign the sanitary registration, while it is still in force.

The Decree excludes from payment of the governmental fees before the INVIMA previously mentioned, to micro businesses and non-profit associations and solidarity entities, related to poor and vulnerable population, population that has been victim of forced migration, population in process of reintegration or reincorporation to society (after the peace agreement) that may lawfully prove their status. Likewise, favored entities cannot assign their sanitary registration.

Finally, Section 5 of Decree 557, extends the enforceability of sanitary registrations belonging to small and micro businesses and non-profit associations and solidarity entities that lapse during the state of emergency declared by the Ministry of Health and Social Protection, further to the pandemic derived from COVID-19, until December 31, 2020.

In addition to the measures related to the filings before INVIMA, the Decree: (a) postpones the deadlines to declare and pay tourism-related taxes from the second and third trimester of 2020, (b) established measures for the transition destination of resources of the tourism-related taxes to favor tourism guides, offering them economic incentives, and (c) takes special measures related to the right of refusal, withdrawal and other circumstances of reimbursement related to tourism establishments.

DECREE557 OF2020