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Covid-19 in Latvia: Updates

The Cabinet of Ministers extends the range of beneficiaries eligible for idle time benefits and tax holidays, establishing that the benefits will also be available to those having a tax debt in an amount less than EUR 1,000 and to companies established after March 1, 2019.

On April 2, 2020, the Cabinet of Ministers adopted the following amendments to the criteria and procedures for receiving an idle time benefit and extension of the tax payment term or a deferral of up to 3 years for any Covid-19 crisis-hit company:

  • The allowed tax debt threshold has been increased to EUR 1000 while maintaining the condition that in case of higher tax debt, the employer shall have a prior agreement with the SRS;
  • If the employer or the taxpayer was established in the period from 1 March 2019 to 31 December 2019, the decrease in turnover shall be calculated taking into account the average turnover in 2019;
  • When receiving the idle time benefit, the employer shall not increase the number of employees compared to the number of employees at the beginning of the idle time.

Read more about the amendments here