Law on Assistance to the Productive Sector and Workers for the Effects of the Covid-19 Pandemic

An extension is granted to Obligated Taxpayers categorized as small and medium-sized contributors and to natural persons and independent professionals for the presentation and payment of the Sworn Declaration of Income Tax, Solidarity Contribution and Net Assets; as well as for the presentation and payment of the declarations of the Contribution of the Social Sector of the Economy; Specific Tax of Single Income on Rental or Lease of Dwellings or Apartment Buildings; Special Contribution on the Operating Surpluses obtained by Private Universities, Schools and Institutions of Preschool, Primary and Secondary Education; and to the Social Contribution of the Cooperative Sector; all corresponding to the fiscal period 2019, of which, both their formal and material obligations, shall be complied with no later than thirty (30) June 2020. The extension to the Specific Tax of Single Income on Rental or Lease of Dwellings or Apartment Buildings established in the preceding paragraph is excepted for rental income derived from horizontal property, for which these shall be complied with no later than thirty (30) April 2020.

Obligated Taxpayers categorized as small and medium-sized contributors may enjoy a discount of 8.5% in the Income Tax to be paid for the fiscal period 2019, if they carry out the presentation of the declaration and payment thereof no later than thirty (30) April 2020.

The installments of the Installment Payments of Income Tax corresponding to the fiscal period 2020, must be calculated on seventy-five percent (75%) of the amount of Income Tax determined in the fiscal period 2019 and the payment dates of the first three installments are extended as follows:

• 1)

  First installment, until thirty-one (31) August 2020;

• 2)

  Second installment, until thirty-one (31) October 2020; and,

• 3)

  Third installment, until thirty-one (31) December 2020.

To extend the deadline for the presentation of the Annual Informative Sworn Declaration of Transfer Prices for the fiscal year 2019, which shall be presented no later than 31 July 2020.

All calendar days are declared unsuitable for the period in which the declaration of emergency originated by COVID-19 occurs, excepting from this provision and its effects, the days or deadlines necessary solely to comply with each of the regulations established in Articles 1, 2, 3, 4, 5, 6 and 7 of this decree.

To obligated taxpayers who retain all their employees within the period initiated from the declaration of state of emergency arising from COVID-19 through December 2020, respecting the payment of salaries and labor rights and who have not made suspension or termination of employment contracts, a special additional deduction of their gross income equivalent to 10% calculated on the payment of salaries and wages made in the months that the declared state of emergency lasts shall be recognized, which may be accounted for as a deductible expense for purposes of Income Tax in the fiscal period 2020. This benefit will be lost in cases where the employer terminates or suspends employment contracts.

The deadlines for the presentation of declarations and payment of Sales Tax corresponding to the months affected by the emergency declared by COVID-19 are extended to all obligated taxpayers who have not had operations within the same period of the emergency previously indicated, which shall be presented no later than within ten (10) business days following the end of the state of emergency. Those obligated taxpayers who maintain operations are excepted from the foregoing, for which the obligation of declaration and payment of Sales Tax remains according to applicable legislation.

Within the framework of the HUMANITARIAN AND HEALTH STATE OF EMERGENCY declared throughout the national territory, the Ministry of State in the Office of Finance (SEFIN) is authorized so that, if necessary during fiscal years 2020 and 2021, it may carry out direct contracting of internal or external loans, redistribution or reallocation of available external resources, placement of debt securities in the domestic or international market and other public credit operations at the financial conditions obtained at the time of negotiation, up to an amount of TWO THOUSAND FIVE HUNDRED MILLION DOLLARS OF THE UNITED STATES OF AMERICA (US$2,500,000,000.00) in addition to the amount of borrowing authorized in Article 1 of Decree No. 171-2019, for the creation of an emergency fund intended to address the effects caused by coronavirus (COVID-19), which shall be formalized through the respective instruments and corresponding procedures that will determine the additional amount for placement of debt securities and/or obtaining loans; establishing a maximum ceiling for public borrowing of the Non-Financial Public Sector in relation to Gross Domestic Product (GDP) of fifty-five percent (55%) and a minimum weighted concessionality of the current total external debt portfolio of twenty percent (20%); and shall be contemplated within the respective macroeconomic and fiscal analyses. These resources shall be allocated to provide the National Health System with immediate response capacities for the control, containment and prevention of the spread of the coronavirus epidemic. Likewise, resources shall be directed to the implementation of measures of social compensation and allocation of resources to promote strategic sectors, in order to generate employment, create a technical crisis table and promote a process of sustained economic growth. The Ministry of State in the Office of Finance is instructed to form a Specialized Working Group for the analysis and responsible management of public indebtedness, and may request the support of other Institutions.

The Ministry of State in the Office of Finance (SEFIN) is authorized to create the necessary budget items for income and expenses in the General Budget of Income and Expenditures of the Republic for the registration of operations derived from the application of this Decree and in each fiscal year during the validity of the obligations.

The Ministry of State in the Offices of Governance, Justice and Decentralization (SGJD) is authorized, by virtue of the National Emergency Declared, to effect the registration of the expense form (F01) in the Integrated Financial Administration System (SIAFI), corresponding to the transfer of the first quarter of the year two thousand twenty (2020) to the Municipal Corporations. The Ministry of State in the Office of Finance (SEFIN) is instructed to coordinate with the Ministry of State in the Offices of Governance, Justice and Decentralization (SGJD) to carry out the financial programming of first quarter transfers in accordance with the collection of income in the current fiscal year. Likewise, Municipalities must prioritize the execution of these resources to address the COVID-19 emergency and the payment of employee payroll. Likewise, the Ministry of State in the Offices of Governance, Justice and Decentralization (SGJD) is authorized, for this occasion only, to transfer as of the second quarter of this year, the presentation and compliance by the Municipal Corporations of the legal requirements to access the corresponding transfers of the first quarter of the year two thousand twenty (2020), the foregoing in observance of the principles of accountability and transparency.

REFINANCING AND FINANCIAL READJUSTMENT FOR ALL SECTORS. THE HONDURAN BANK FOR PRODUCTION AND HOUSING (BANHPROVI) is a Financial Institution that is part of the National Financial System, and in such capacity is empowered to carry out all credit operations stipulated by the Laws applicable to Financial Institutions, including Refinancing and Readjustments of credits that, due to problems of any kind affecting their debtors, cannot meet the payment of their obligations. Within the framework of the Coronavirus crisis and post-crisis, the implications will be sanitary, but also a contraction of economic activity in different strategic sectors of the country, considering that the Honduran Bank for Production and Housing (BANHPROVI) within its powers is to support national development through the financing of strategic sectors through its first and second-floor banking. For this reason it is important that to guarantee the reactivation of strategic sectors, the Honduran Bank for Production and Housing (BANHPROVI) be authorized to make its financial products and services more flexible in order to guarantee financial inclusion, job creation, promotion of economic growth, contribute to mitigating the effects that cause inflation and others. Therefore, the Honduran Bank for Production and Housing (BANHPROVI) is authorized to suspend payment and readjust the installments to be paid of principal and interest of the users (natural and legal persons) at the end of the total portfolio corresponding to the months of March, April and May 2020, which shall be transferred to the final maturity of each credit, granting an extension of the credit term by three additional months to each debtor who receives such readjustment, likewise the Honduran Bank for Production and Housing (BANHPROVI) is authorized to readjust and refinance with its own funds all new loans and existing ones in its portfolio, which for any reason require this credit operation, granting them the conditions (term, form of payment, amount and rate) that in accordance with their economic and financial conditions can meet the new obligations to be paid; as well as other strategies that facilitate access to credit to all economic sectors of the country that are priorities in job and foreign exchange generation, conducting the risk management established by the corresponding regulatory framework; requesting the guarantees permitted by the current norms issued by the National Commission of Banks and Insurance (CNBS); and contract directly those services and goods that provide continuity and promotion of the business and expansion of its first and second-floor services. The Central Bank of Honduras (BCH) and the Honduran Bank for Production and Housing (BANHPROVI), in their capacity as Trustor and Trustee respectively, are authorized to use the resources defined in Article 2 of the Law of Financial Support for the Productive Sectors of Honduras, contained in Decree No. 175-2008 dated December 18, 2008; amended by Decree No. 67-2009 dated May 12, 2009; Decree No. 57-2013 dated April 16, 2013; Decree No. 95-2014 dated October 16, 2014; Decree No. 90-2016 dated October 19, 2016; and Decree No. 145-2018 dated November 28, 2018, to carry out expenditures and investments that promote risk management and/or refinancing and debt readjustment to natural or legal persons who are debtors of the financial system belonging to productive sectors, such as MIPYME, Agricultural, Forestry and other sectors prioritized for job and/or foreign exchange generation for the country; as well as the direct contracting of electronic wallets or other electronic mechanisms that allow access to credit to Micro and Small enterprises in an expedited and secure manner in all productive sectors of the country through information and communication technologies.

The Honduran Bank for Production and Housing (BANHPROVI) is authorized to proceed with the cancellation of credit assignments of all those borrowers whose credits were assigned by the Social Housing Fund (FOSOVI), Association of Evangelical Institutions of Honduras (AIEH) and the Honduran Federation of Limited Housing Cooperatives (FEHCOVIL) and who accredit that they have already paid their obligations to FOSOVI, AIEH and FEHCOVIL, as well as also to proceed with the cancellation of credit assignments to all those borrowers whose credits granted by FOSOVI, AIEH and FEHCOVIL were not rediscounted by BANHPROVI and those that being rediscounted are without balance according to BANHPROVI's accounting. Likewise, BANHPROVI is authorized to make the accounting write-offs of the previous customer portfolios, in accordance with applicable laws, the norms issued by the National Commission of Banks and Insurance (CNBS) and the policies approved by BANHPROVI, since the users of such credits cannot use their dwellings as collateral to access financing.

BANHPROVI is authorized so that within the framework of its powers with the object of guaranteeing the credits it grants to natural and legal persons, through First and Second-Floor Banking, within the framework of expediting credit and in adherence to CNBS norms, it may receive the following as collateral: Fiduciary, Movable, Pledge, Assignment of Credit Portfolio, Mortgage, Reciprocal Guarantee, Guarantee Fund Certificate, Bank Guarantees, Bonds, Liquid Guarantees, as well as any other that is approved as viable by the Board of Directors of BANHPROVI. The foregoing automatically enables modifications to the articles of the credit regulation that refer to portfolio review mechanisms, approval thereof and the financial products it offers.

BANHPROVI is authorized to use its own funds and those from the trusts it manages within the framework of its powers and in order to make financing more flexible and expedite financing to the MIPYME and agri-food sector, to enable the financial mechanism of "accelerated credit lines" for regulated and non-regulated institutions, so that disbursements can be granted with the simple presentation of the promissory note, and otherwise each of the credits that make up the credit line shall be formalized in accordance with the current credit manuals and policies of BANHPROVI.

BANHPROVI is authorized in order to generate cash flow with immediate availability, to redeem with penalty if applicable, the investments that through fixed-term deposit certificates it currently holds in institutions of the financial system.

Special Authorization for the Contracting of Licenses and Electronic Platforms: The Honduran Bank for Production and Housing (BANHPROVI) is authorized to directly contract the acquisition of financial resource planning systems that may accord with institutional priority, the following components:

• a)

  promote financial inclusion and the payment and collection mechanism to the beneficiary population of state programs.

• b)

  Financial administrative management that includes general accounting, fixed asset control, accounts receivable, accounts payable and treasury; budget control management that includes cost center accounting and budget management module.

• c)

  Logistics control management that includes the purchase and acquisition of goods, inventory control and management, and the maintenance of assets and vehicle fleet;

• d)

  Controls over expenses, personnel, and the recruitment and retention of qualified human resources to gradually increase the professionalization of civil servants in selected institutions.

• e)

  Measure the behavior of critical variables in human resources processes such as personnel turnover, labor absenteeism, hiring time, unfilled vacancies, late arrivals, permits, fictitious and duplicate employees.

• f)

  Automation of sensitive processes to ensure quality, traceability and service improvement.

• g)

  Acquire the supply of technical infrastructure for the installation of said solution, specialized consulting services for each of the management modules, and obtaining the respective licensing.

Authorize BANHPROVI to establish and administer any type of GUARANTEE FUNDS; likewise, to grant financing to the MSME Sector through all Financial Institutions qualified as Eligible, accepting among others, collateral consisting of a Guarantee Certificate issued by any Entity authorized to administer Guarantee Funds.

The Executive Branch, within the framework of the National Emergency due to the threat of spread of Coronavirus COVID-19, on March 20, 2020 decreed ABSOLUTE RESTRICTIONS OF CONSTITUTIONAL GUARANTEES THROUGHOUT THE ENTIRE NATIONAL TERRITORY, a situation that limited the normal movement of persons to conduct administrative proceedings in all Institutions, in this sense, BANHPROVI is empowered to grant to all its clients (Financial Intermediaries), sixty (60) additional business days beyond the terms stipulated in the Resolutions approved by the Board of Directors of BANHPROVI, General Credit Regulations for Second Floor Operations and the BANHPROVI Law and its Regulations; with the exception of information that is periodically required to conduct risk analyses that determine the financial situation of clients. FIFTH SECTION AUTHORIZATION TO THE SECRETARIAT OF HEALTH, INVEST-H, SECRETARIAT OF STATE IN THE OFFICE OF RISK AND NATIONAL CONTINGENCY MANAGEMENT TO CONDUCT DIRECT CONTRACTING TO MEET THE REQUIREMENTS OF PUBLIC INSTITUTIONS FACING THE NATIONAL EMERGENCY

The Secretariat of State in the Office of Health (SESAL), Strategic Investment of Honduras (INVEST-Honduras) and the Secretariat of State in the Office of Risk and National Contingency Management are authorized to directly contract for works, goods and services that it deems necessary for the containment, care and mitigation of the health, economic and social effects derived from the Pandemic caused by the COVID-19 virus.

All prior material actions to the issuance of this Decree that have been carried out by the Secretariat of State in the Office of Health (SESAL), Strategic Investment of Honduras (INVEST-Honduras) and the Secretariat of State in the Office of Risk and National Contingency Management are authorized to ensure the obtaining of all purchases assigned in the previous Article. All types of taxes, fees or any other charges that burden purchases made by INVEST-Honduras for the care of the Pandemic caused by the COVID-19 virus are exempted; as well as, the importation, transfer and installation of Mobile Isolation Hospitals that INVEST-Honduras acquires. The installation of the same is authorized in areas that are considered technically appropriate and their operation without the need for any prior administrative procedure, whether national or municipal. All Secretariats of State, decentralized institutions, deconcentrated institutions and other organs of the Public Administration in General shall provide the assistance that the Secretariat of State in the Office of Health (SESAL), INVEST-Honduras and Secretariat of State in the Office of Risk and National Contingency Management require for the purpose assigned to them. SIXTH SECTION AUTHORIZATION TO CONATEL TO ACCELERATE THE IMPLEMENTATION OF THE NATIONAL BROADBAND PLAN, CREATION OF ELECTRONIC SERVICE PLATFORMS, MODIFICATION OF MOBILE TELEPHONY AND PERSONAL SERVICES CONTRACTS (PCS)

The National Telecommunications Commission (CONATEL) may, by mutual agreement, extend the Concession Contracts entered into with Mobile Cellular Telephony operators and Personal Communications Service (PCS), approved by the National Congress of the Republic, by means of a Resolution of the Plenary Session of the Commission, and shall notify the Superior Court of Accounts (TSC) and publish the same in the Official Newspaper "La Gaceta", for it to have legal effect.

Likewise, the National Telecommunications Commission (CONATEL) is authorized to grant Licenses upon application by Mobile Cellular Telephony operators and Personal Communications Service (PCS) in the frequency ranges that are available, Radio spectrum that shall be assigned in accordance with international methodologies for spectrum valuation.

The Technical Committee of the Investment Fund in Telecommunications and Information and Communications Technologies (FITT) is authorized to, through expedited processes, accelerate the implementation of the National Broadband Plan that seeks to extend telecommunications infrastructure to all municipalities in the country, especially in health centers, hospitals, public educational centers, remote communities and civil protection institutions.

The Technical Committee of the Investment Fund in Telecommunications and Information and Communications Technologies (FITT) is authorized to, through abbreviated processes, acquire equipment, services, computer licenses that the National Telecommunications Commission (CONATEL) requires, to comply with its mandate and guarantee the development of the Telecommunications sector in the country in matters of regulation, supervision and reduction of digital divide, digital government and development of tele-education, telework, telehealth and other sectors that will benefit from the implementation of technological transformation tools. SEVENTH SECTION SOLIDARITY CONTRIBUTION FOR THE TEMPORARY MAINTENANCE OF EMPLOYMENT AND INCOME FOR WORKERS DURING THE NATIONAL EMERGENCY

OBJECT: The Law has the purpose that during a process of suspension of employment contracts before the Secretariat of State in the Offices of Work and Social Security (STSS) due to the national health emergency of the COVID-19 pandemic (coronavirus), to guarantee labor stability, as well as the granting of a solidarity contribution, which ensures the survival of workers and, for purposes of this Law does not constitute wages. This Law is aimed at maintaining employment and the sustainability of companies, in order to mitigate any measure that leads to the final termination of employment contracts and closure of companies during the national health emergency.

SCOPE OF APPLICATION: This Law is of public order and is applicable to private sector companies whose workers are affiliated with the Private Contribution System (RAP), the Maquila Industry or any other sector that the Executive Branch determines, which may benefit from mechanisms similar to those provided in this Law. TEMPORARY SOLIDARITY CONTRIBUTION FOR WORKERS

TEMPORARY SOLIDARITY CONTRIBUTION FOR WORKERS: Workers who are subject to a suspension of contracts due to force majeure derived from the National Health Emergency may receive a temporary solidarity contribution, which may be financed in the following manner: 1) For workers who are affiliated with the Private Contribution System (RAP), with contributions made by the State, the Private Sector and the Private Contribution System (RAP). 2) For workers employed in companies covered under the Free Trade Zones System (Maquila), with contributions made by the State and the Private Sector. In all cases, the amount, term and form of payment shall be determined by the parties that finance the temporary solidarity contribution.

PROCEDURE: Companies that, due to the National Health Emergency, find themselves in the urgent need to suspend employment contracts, must notify electronically the Secretariat of State in the Offices of Work and Social Security (STSS) through a note, the decision to avail themselves of this Law, which must contain:

• 1)

  Request by employers to avail themselves of this Law, with the commitment to make the corresponding contribution in order to finance the temporary solidarity contribution granted to workers, through a Sworn Statement. This request must prove the impact that prevents the non-payment of wages to its workers. In case the worker disagrees with the employer's decision to avail themselves of this Law, he must notify it in writing to the Secretariat of Work and Social Security (STSS) in the corresponding suspension process.

• 2)

  Period of probable suspension of employment contracts.

• 3)

  List of workers subject to suspension, stating their full name and identity card number.

• 4)

  Whether or not workers are affiliated with RAP. For purposes of accessing the benefits of this Law, the Secretariat must issue a Certificate that enables companies to access such benefits, without prejudice to the employment contract suspension procedure contained in the Labor Code. It being understood that in no case does the issuance of the certificate represent authorization by the Secretariat of Work and Social Security (STSS) for the suspension of employment contracts and that the issuance of such certificate is at the discretion of said Secretariat of State. By virtue of the foregoing, once the National Health Emergency expires, in compliance with Article 100 of the Labor Code, the written Request for Authorization for the Suspension of Employment Contracts must be filed in a timely manner and form in accordance with the provisions of Article 61 of the Administrative Procedure Law together with the requirements already established by the Secretariat of State in the Offices of Work and Social Security (STSS), and must also prove payment of the temporary solidarity contribution granted to workers during the period of the emergency declared by the Executive Branch. The days of the National Health Emergency period are considered non-business days for all corresponding legal purposes. The procedure to resolve the request for authorization of suspension of employment contracts before the Secretariat of Work and Social Security (STSS) shall be developed in accordance with applicable regulations. It is understood that in case the Request for Authorization for the Suspension of Employment Contracts is declared without merit, workers may exercise their rights arising from the employment relationship for the responsibility that corresponds to the employer, and must pay the wages corresponding to workers during the time of suspension, and also refund the total amount of contributions granted as consideration by the Government of the Republic and the Private Contribution System (RAP) for the financing of the temporary solidarity contribution for the survival of workers. The misuse or non-application of the temporary solidarity contribution shall entail criminal, civil and administrative responsibility on the part of employers.

GUARANTEE OF ACCESS TO SOCIAL SECURITY: Within the framework of this Law, workers shall maintain the benefit of access to health through the Honduran Institute of Social Security (IHSS) even though contributions are suspended due to the suspension of work or the period of the National Emergency.

ALLOCATION OF RESOURCES: To comply with the contribution corresponding to the Government Sector to finance the temporary solidarity contribution for workers subject to a suspension of employment contracts, the Secretariat of State in the Office of Finance (SEFIN) is authorized to carry out all corresponding actions in order to obtain the necessary funds.

SOCIAL DIALOGUE: Without prejudice to the provisions established in this Law and within the framework of Social Dialogue, workers and employers may agree through agreement on actions that provide greater benefits. It is understood that such agreements must be reported immediately to the Ministry of Labor and Social Security (STSS) through electronic means created for such purpose, in compliance with the provisions of Article 379 of the Labor Code. REGIME OF PRIVATE CONTRIBUTIONS (RAP)

AUTHORIZATIONS FOR THE RAP: The Regime of Private Contributions (RAP) is authorized to design mechanisms for the implementation of benefits to workers derived from this Law, as well as to grant temporary economic relief measures to generate liquidity in companies and income to workers affiliated with said Regime who have been affected by the State of Health Emergency decreed throughout the country, as a consequence of the Pandemic generated by Coronavirus (COVID-19). Such Relief measures are aimed at: 1) The temporary suspension of the collection of worker and employer contributions and payments, and 2) Participate as a contributor in accordance with the provisions of this Law.

TEMPORARY SUSPENSION OF APPLICABLE LEGAL PROVISIONS: To temporarily suspend the application of articles 13 numeral 2, 30, 53, 59-A of the Framework Law of the Social Protection System with respect to provisions related to financing through mandatory worker and employer contributions and payments derived from the Social Security Insurance Regime (Complementary Pillar of Individual Accounts) and from the Labor Coverage Insurance Regime; for a period of three (3) months, counted from the month of March of the year 2020 by virtue of the National Health Emergency and Absolute Restriction of Constitutional Guarantees decreed as a consequence of the threat and spread of the COVID-19 Pandemic (Coronavirus).

TEMPORARY CESSATION OF COLLECTION OF WORKER AND EMPLOYER CONTRIBUTIONS AND PAYMENTS: The Regime of Private Contributions (RAP) is authorized to cease for a period of up to three (3) months from the month of March 2020, the collection of mandatory worker and employer contributions and payments corresponding to individual capitalization accounts derived from the Social Security Insurance Regime and Labor Coverage Insurance Regime, in accordance with the attribution granted by the Framework Law of the Social Protection System. The foregoing as a palliative measure for the reduction of income of workers and private companies affiliated with the RAP, as a result of the emergency measures applied in the country. The aforementioned period may be extended provided that there is a decree issued by the State and in accordance with the gradualism established by the RAP.

PARTICIPATION OF THE RAP AND ADVANCE BENEFIT: The Regime of Private Contributions (RAP) shall participate as a contributor as indicated in this Law and consequently shall grant its affiliates an advance on the values they have in their Individual Capitalization Account derived from the Social Security Insurance Regime and the Labor Coverage Insurance Regime, as well as any other individual account that is credited in the name of the affiliate and that are being administered by the RAP; taking into consideration the balance that each affiliate had in their individual account. The advance established in this article shall be divided into three (3) successive monthly payments of equal value, up to an amount of Nine Thousand Lempiras (L.9,000.00) to be disbursed in three (3) months. Said advance shall be granted provided that the company affected by the emergency proves to the RAP in a reliable manner that it has been affected in the development or normal course of its operations and/or economic activity, and also proves compliance with the provisions of Article 28 of this Law. The Ministry of Labor and Social Security (STSS) shall issue a certificate that certifies the request of the company to apply the provisions of this Law, which may be sent electronically to the employer. Once said certificate is issued, the employer shall present it to the RAP, accompanied by the list with the details of the full name and identity number of its workers subject to the suspension of labor contracts. For such purposes, the Regime of Private Contributions (RAP) shall establish the procedure to grant the benefit established in this Article. In any case, if the labor relationship terminates, the temporary solidarity contribution granted to workers under the provisions of this Law does not constitute, in any way, a labor right of any kind. In the case that participation is only between the State and the company, the procedure to grant the benefit shall be established by the Executive Branch.

SUSPENSION OF INTEREST, FINES AND SURCHARGES: The temporary measures described in articles 9 and 10 of this Law shall not result in the generation of interest, fines and surcharges of any kind for private companies in their capacity as employers and for workers in the country who comply with the provisions contained in this Law and shall not represent a breach of the new powers and faculties granted to the Regime of Private Contributions (RAP) in the Framework Law of the Social Protection System.

Natural and legal persons, including those incorporated under the free trade zones regime, are not subject to the payment of Sales Tax and customs duties on the import on local purchases and imports of raw materials, machinery, inputs, equipment, spare parts, accessories and packing material necessary for the manufacture of medical supplies, as well as antiseptics and disinfectants that serve to protect to address the health emergency and combat the effects of the risk of infection by coronavirus. The Ministry of State in the Office of Finance and the Customs Administration of Honduras, within a maximum period of five (5) business days counted from the date of entry into force of this Decree, must issue the tax-customs instruction that leads to the implementation of what is established in the previous articles. Once the instruction described above is issued, immediately the Customs Administration must create the precision codes in the Customs Computer System for the application of the previous paragraph and the respective controls. The exemption established in this Article shall have a duration until December 31, 2020.

MEASURES FOR THE CELEBRATION OF COMMERCIAL TRANSACTIONS THROUGH VIRTUAL MECHANISM DURING THE ISOLATION STAGE. While the corresponding laws or legal reforms are approved, all private contracts that are concluded through technical means of filing and reproduction that allow filing, knowing or reproducing the content of a declaration of will of one or more persons or the expression of an idea, thought that is subscribed by electronic signature, or that allow the knowledge or experience, data, figures and mathematical operations carried out for accounting purposes or other kind, are authorized and enjoy legal validity and effectiveness. Likewise, private legal acts shall be valid and effective that require the assistance of two (2) or more natural or legal persons through their representative, which are carried out through the reproduction of sounds and images captured by means of filming instruments, recording or similar ones. The proof of such acts and contracts shall be subject to the rules established in the Civil Procedural Code".

ENTRY INTO FORCE: This Decree shall enter into force from the day of its publication in the Official Gazette "La Gaceta". Given in the City of Tegucigalpa, municipality of the Central District, in the Sessions Hall of the National Congress, on the second day of the month of April of two thousand twenty. MAURICIO OLIVA HERRERA PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SALVADOR VALERIANO PINEDA SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., April 3, 2020 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICE OF THE PRESIDENCY EBAL JAIR DÍAZ LUPIAN National Congress RESOLUTION No. 01-2020