Mechanisms for entrepreneurs and employees to support them during the state of emergency regarding COVID-19

30-03-2020

On March 26, 2020, the Government of Latvia approved the criteria and the procedures for receiving aid, in which a company affected by the Covid-19 crisis in any sector can qualify for downtime allowance and tax holidays for up to three years.

 

The businesses who can apply for downtime allowance and for the distribution or deferral of late tax payments for a period of up to three years are:

  • Businesses whose revenue from economic activity in March or April 2020, compared to the relevant month of 2019, has decreased by at least 30 per cent due to the distribution of Covid-19;
  • Businesses whose revenue from economic activity in March or April 2020 compared to the relevant month of 2019 has decreased by 20 per cent due to the distribution of Covid-19, provided that they meet at least one of the following:

- the export volume of the company accounts for 10% of its total turnover in 2019 or is not less than EUR 500 000;
- the average monthly gross salary paid by the company in 2019 is not less than EUR 800;
- the long-term investment in fixed assets on 31 December 2019 is at least EUR 500 000.

 

For more information on the decision and application arrangements, see HERE.

 

In addition, the following programmes are currently available to support operators in the event of an emergency:

  1. Tax aid – COVID19 for sectors affected by the crisis (implemented by the SRS). Contact information: 67120000, vid@vid.gov.lv ;
  2. Tax aid – for entrepreneurs and workers, regardless of industry (implemented by the SRS). Contact details: 67120000, vid@vid.gov.lv
  3. Support for company rentals (implemented by municipalities). Contact the relevant local government;
  4. Current loan (implemented BY ALTUM). Contact details: 67774048, garantija@altum.lv ;
  5. Credit holiday guarantee: please refer to the bank where the credit is issued. Contact details: 67774151, garantija@altum.lv or in contact with yourbank.

 

It is also possible to contact LIDA, which will help find the most appropriate state aid! Contact details: 68803505, jautajumi@liaa.gov.lv

 

FOR INFORMATION:

The Republic of Latvia announced a state of emergency from 12 March 2020 to 14 April 2020, taking into account the rapid spread of the virusCOVID19 in the world and efforts to limit it in Latvia in order to ensure that it is kept under control as much as possible.

 

Declaring a state of emergency means wide restrictions on business as well as other areas of household, which inevitably means optimizing funds and potential losses.

 

Currently, the Ministry of Economics has submitted to the Cabinet in the near future a number of informative reports regarding support measures for the reduction of the negative consequences caused BY THE COVID19 disease, which provide solutions to the existing problem. The solutions proposed relate to tax, monetary, post-crisis recovery and otheraid.

 

The Ministry of Economy informs that the Saeima has adopted and the President of Latvia has proclaimed the Law On Measures for Prevention and Management of State Hazard and Its Consequences in relation to the spread OF COVID19 (hereinafter - Law). The Law entered into force on 22 March 2020.

 

More information on the Law and the support mechanisms it contains can be found HERE.

 

More detailed information on the available types of aid will be followed in the coming days, for further information please check official websites of ministries and please respect the security measures.

 

Last update:    01-04-2020