DTI grants 30-day grace period for commercial rent payment
Finance & Accounting
237 week ago — 3 min read
The Department of Trade and Industry (DTI) granted a minimum 30-day grace period on residential and commercial rent payment for micro, small, and medium enterprises (MSMEs) according to its Memorandum Circular (MC) No. 20-29.
This changed the previous MC guidelines which determined the start of the 30-day grace period from “the last due date of rent which fell within the ECQ.”
The DTI made the amendments as the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) expanded the lockdown measures from enhanced community quarantine (ECQ) to modified ECQ, general community quarantine (GCQ), and modified GCQ.
More businesses and jobs have also resumed as the quarantine measures ease.
The commencement of the grace period granted by its lessor shall be from the latest due date of the rent falling within the covered community quarantine.
Also read: 6 financing options to help your business stay afloat during and after crisis
But the DTI has different rules for tenants whose business or work were permitted by the IATF to resume their operations.
“The commencement of the grace period granted by its lessor shall be from the latest due date of the rent falling within the covered community quarantine. This shall apply regardless of whether or not lessee opts to go back to work or resume business operation,” the MC 20-29 said.
During the Laging Handa public briefing Tuesday, DTI Undersecretary Ruth Castelo said tenants have the option of paying the cumulative rents in monthly installment for six months.
“The requirement is they will execute a promissory note or any letter indicating their intention to pay in installment and give it to their landlord or landowner,” Castelo said.
The new MC reiterates the non-enforcement of eviction from the start of the ECQ until the end of the grace period.
Source: PNA
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