Support for Entrepreneurs and Employees
Last update 14.01.2021
Grant for the working capital flow
- A company can receive the support if:
- the turnover for the month for which the support is requested (November or December) is at least 20% lower than the average turnover in August, September and October 2020 combined;
- and is at least 30% lower than in the corresponding month of 2019 (does not apply to companies registered in 2020).
- The support is 30% of the total gross wage on which wage taxes were paid in August, September, and October 2020.
- Applications for the grant for November or December can be submitted until 15 January 2021.
Downtime allowance for companies and their employees
- The downtime allowance shall be granted for employees in the amount of 70% of the average monthly gross salary for the period from 1 August to 31 October 2020.
- Employees of a micro-enterprise will be able to receive support in the amount of 50% of the average monthly gross salary for the 3rd quarter of year 2020, as indicated in the quarterly declaration.
- Regardless of the current salary, the downtime allowance from 1 January 2021 will not be less than EUR 500 and no more than EUR 1000 for a full month.
- In addition to the downtime allowance, the State Social Insurance Agency will also grant a supplement of EUR 50 for each dependent child under the age of 24, for which the employee is subject to personal income tax relief.
- The employer may pay its employees the difference between the downtime allowance and the full salary received so far.
Allowance for part-time employee salary subsidies
- Within the framework of the support measures the employee will receive support in the amount of 50% of the average monthly gross salary for the period from 1 August to 31 October of year 2020 but not more than EUR 500.
- The employer is obliged to pay the difference between the salary subsidy and the full salary received so far.
Support for self-employed and patent payers
- For a self-employed person operating under the general tax regime and a recipient of royalties who has not registered as an economic operator, support is provided in the amount of 70% of the average income from economic activity or royalties in the 3rd quarter of year 2020, but not less than EUR 500 and no more than EUR 1000 per full month.
- A self-employed person - a micro-enterprise taxpayer may receive support in the amount of 50% of the average monthly income from economic activity for the third quarter of year 2020, but not less than EUR 500 and no more than EUR 1000 per full month.
- The patent payer has a fixed downtime allowance in the amount of EUR 500 per full month. It is available if there is a valid patent during the support period.
- In addition to the downtime allowance, the SSIA will also grant a supplement of EUR 50 for each dependent child under the age of 24, for which the person is subject to personal income tax relief.
How does one apply for the allowance?
- You can apply by filling in the application form in the SRS Electronic Declaration System (EDS). The application form is available in the EDS from 1 December of year 2020.
- For employees of the company, the employer submits both an application for downtime allowance and a salary subsidy, but the employee receives the support to his/her account.
- You can apply for the allowance for November until 15 December, for December - until 15 January, and for January - until 15 February.
In applications for March and in any subsequent months, a justification for the link between the reduction in revenue and the restrictions on economic activity associated with the epidemiological safety measures to limit the spread of Covid-19 will have to be provided.
Support from the State Revenue Service
- Applying by 30 June, 2021, 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.
- 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:
- Working Capital Loan
- Loan Holidays Guarantee
- Export support
- Investment fund
- Guarantees to large companies
- Loans for large and medium-sized businesses
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
- Support for tourism companies to overcome the effects of the Covid-19 crisis
Support programme for tourism companies to overcome the effects of the crisis caused by the Covid-19 virus and to promote employment. Companies in the tourism sector that meet the criteria stated in the regulations will be able to receive support in the amount of 30% of the mandatory state social insurance contributions made in 2019. The maximum support for one company or group of companies may reach up to 800 thousand euros. Applications for receiving support must be submitted by 30 September 2020
- Support for export companies to overcome the effects of the Covid-19 crisis
Support programme for export companies to overcome the effects of the crisis caused by the Covid-19 virus and to promote employment. Export companies that meet the criteria stated in the regulations will be able to receive support in the amount of 25% of the mandatory state social insurance contributions made in 2019. The maximum support for one company or group of companies may reach up to 800 thousand euros. Applications for receiving support must be submitted by 30 September 2020
- Exceptions for non-compliance with 14-day self-isolation requirements for performance of work duties
The requirement of 14-days’ self-isolation need not apply to foreigners at the time and place of performance of their work duties, the arrival of whom in Latvia is required for the fulfilment of liabilities of Latvian merchants.
Telephone: +371 68803505