Support for Entrepreneurs
Last update 15.06.2020
On 10 June this year, following the lifting of the state of emergency, the "Law on Overcoming the Consequences of the Spread of the Covid-19 Virus", which provides for the maintenance of a number of support measures for entrepreneurs, entered into force.
Support from the State Revenue Service
- Allowance for idle time for employees and self-employed persons. Through 30 June, the SRS will be able to pay allowances for idle time caused by Covid-19 and exceeding the period of the state of emergency. Employers may submit an application for the period from 1 June to 30 June for their employees by 30 June, and self-employed persons may do so by 25 July.
- Applying by 30 December, 2020, entrepreneurs affected by the crisis will be able to receive an extension of the deadline for the payment of taxes or a division of the taxes into several payment periods for a period of up to three years. The taxpayer must submit a substantiated application regarding the necessity to divide the payment or to extend its deadline within 15 days after the deadline of the payment. No arrears will be calculated for this overdue tax payment, while information about the company will not be included in the database of tax debtors administered by the SRS.
- The cancellation of 2020 advance payments of personal income tax has remained in force. Moreover, donors retain the favourable opportunities to make donations in 2020 to help overcome and prevent the consequences of COVID-19 without being subjected to corporate income tax.
- The three-month extension of the submission deadline of the 2019 annual financial statement (where applicable) granted to the subjects of the Law on Annual Financial Statements and Consolidated Financial Statements is also maintained. As a result, companies that must submit their annual financial statement by, for example, 30 April, will be able to submit their annual financial statement by 31 July, while companies that normally submit their annual financial statement by 31 July will have the deadline extended until 31 October. In turn, associations, foundations, and religious organisations with an annual financial statement submission deadline of 31 March will be able to extend the deadline for the submission of their 2019 statement until 31 July.
- Until the end of 2020, the SRS will continue to ensure the refunding of the approved overpaid value added tax (VAT) amount in a shorter term than provided by the current VAT law. As a result, businesses will have more financial resources available for overcoming the consequences caused by the COVID-19 crisis.
- In 2020, 2021, 2022, and 2023, the SRS will not exclude participants from the In-Depth Cooperation Programme or reduce the programme level for those participants of the In-Depth Cooperation Programme that have been affected by the financial consequences of the spread of Covid-19. At the same time, the participants of the programme will need to provide evidence that the objective circumstances have arisen as a result of the spread of Covid-19.
- Remote selling of alcoholic beverages continues.
!Please note that as of 10 June, 2020, the use of undenatured ethyl alcohol in the production of disinfectants is prohibited.
Detailed information on the criteria for potential support beneficiaries, the granting conditions, and the receiving procedure is available on the website of the State Revenue Service.
In case of any questions or uncertainties, please call the SRS consultation number 67120000 or ask a question in writing under the SRS EDS section “Correspondence with the SRS”. Personalised consultations may be received when calling 67120000, as long as the person accesses his/her SRS EDS account during the call and relays the code that is shown there.
Support from the ALTUM Finance Institution
Entrepreneurs can apply to the ALTUM finance institution for:
Find out more about these support mechanisms by calling +371 26655309.
Support for business rent payments
State and municipal capital companies temporarily exempt entrepreneurs in the sectors affected by the Covid-19 crisis from their rent payments or decide on a reduction of the rent amount.
Entrepreneurs must contact the local authorities to find out about the possibility of receiving rent reductions.
More information: Support for Entrepreneurs
Bank support for entrepreneurs
To mitigate the effects of the crisis, banks have developed various solutions for determining bank loan holidays, deferring capital payments, and temporarily postponing other liabilities. If you are a borrower, you can agree with your credit institution on changes in your payment schedule.
To ensure the security of both customers and employees of the banking sector, a large part of banking services is available remotely.
The list of banks and their contact information is available on the website of the Financial and Capital Market Commission.
Support from the Investment and Development Agency in Latvia
LIAA support for foreign trade promotion and a questionnaire on the impact of the crisis for assessing the situation in a timely manner and finding the most appropriate support for business needs. Additional information: firstname.lastname@example.org Telephone: +371 68803505.
If a business needs to send its employees on a business trip and if there is sufficient demand, it is possible to organise special trips to countries that have allowed the flow of passengers. More information and the application form are available on the LIAA website. Additional information: email@example.com Telephone: +371 67039409.