Tag Archives: TGS Baltic

ILN Today Post

Covid-19 in Latvia: Updates in regulatory enactments

General

  • As of 15 May 2020, the Baltic States resumed their international passenger air, sea, bus, and rail services.
  • Transport and passenger transport service providers and passengers, cargo or technical flight crew, performing their work duties or seafarers going to their jobs on board or returning therefrom, as well as foreigners, where the need to bring them into Latvia for compliance of the obligations of merchants has been confirmed by the Latvian Investment and Development Agency, are allowed to cross the external and internal borders of the European Union in the territory of Latvia.
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Covid-19 in Latvia: State of Emergency extended until 9 June 2020

General

  • From 12 May 2020, it is allowed to hold public events both indoors and outdoors, by observing distance of 2 meters. The number of participants in the event may not exceed 25 people, and the maximum duration of the event shall be 3 hours;
  • Mouth and nose cover shall be worn when using public transport;
  • From 12 May 2020, museums, libraries, the National Archive will be able to gradually resume operations, the same applies to cultural events that can be observed from personal auto transport (drive-in events);
  • The shopping centres can be open on weekends and holidays;
  • From 12 May 2020, it is allowed to organize tourism services for travel only in Latvia, Lithuania, and Estonia.
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Amendments to the procedure for granting idle time benefits

Today, on 23 April 2020, the Cabinet of Ministers amended the criteria for granting idle time benefits. The most essential amendments:

  • the reduction in turnover for any undertaking affected by the crisis shall be calculated by comparing the turnover in March or April 2020 with the average income from economic activity for the months worked in 2019;
  • self-employed persons who perform pedagogical or creative work on a part-time basis and whose monthly income does not exceed the minimum wage are eligible for idle time benefit;
  • idle time benefit shall not be granted to members of management board if during the preceding year and at the time of assessment of the application the member of the management board has been punished for violations in the areas of tax and customs or for the breach of the regulatory enactments governing labour legal relationship, unless a warning or a fine not exceeding EUR 151 has been imposed for a single violation, and the total amount of penalties per year does not exceed EUR 500.
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Covid-19 in Latvia: Updates regarding Covid-19

Amendments to the procedure for granting idle time benefits

Today, 9 April 2020, the Cabinet of Ministers amended the criteria for granting idle time benefits to employers affected by the crisis. The most essential amendments:

  • An employee receiving an idle time benefit shall be granted an additional allowance of EUR 50 for each dependent child under the age of 24 for whom the employee is entitled to a personal income tax credit on the date of granting the idle time benefit;
  • The members of the management board and supervisory board of the employer affected by the crisis may also receive the idle time benefit, if the income from economic activity of the employer affected by the crisis in 2019 does not exceed EUR 100,000;
  • Idle time benefit is also available to employees concurrently receiving old-age or retirement pension.
  • The procedure for calculating the idle time benefit for micro-enterprise taxpayers affected by the crisis has been adjusted.
  • From now on, only Cabinet Regulation No. 165 will apply to all employers affected by the crisis, regardless of the sector.

The text of the amendments to the Cabinet Regulation No. 165 is available here.

Changes in employment

  • It is determined that illness due to Covid-19 is not considered to be an accident at work;
  • Self-isolation during performance of job duties, if a person does not show signs of acute respiratory infection and the person is not recognized as a contact person of Covid-19 infectious disease, does not apply to:
  1. Latvian citizens, who return from Lithuania and Estonia after performing their job duties;
  2. Lithuanian and Estonian citizens, who enter the territory of Latvia to perform their job duties.

Medical devices and personal protective equipment

  • Procurement organized by public persons, subject to certain conditions, allows the purchase of personal protective equipment and medical devices, the conformity assessment procedure whereof has not been initiated or has not been fully completed, and which do not contain CE mark.

The text of the amendments to the Cabinet Order on declaring the state of emergency is available here.

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Covid-19 in Latvia: State of Emergency extended until 12 May 2020 and other updates

Covid-19 in Latvia: At the meeting of April 7, the Cabinet of Ministers extended the State of Emergency until May 12, 2020. In turn, at an extraordinary session on April 3, the Parliament of Latvia adopted several amendments to the regulatory enactments due to the spread of Covid-19.

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Covid-19 in Latvia: The latest regulation provides for idle time benefits and tax holidays up to 3 years for all companies with 30% or in certain cases 20% drop in turnover, regardless of industry

On 26 March 2020, the Cabinet of Ministers adopted criteria and procedures for receiving idle time benefits and maturity breakdown of tax payments or a deferral of up to three years for any company affected by Covid-19 crisis.

Rights to receive crisis benefits and tax holidays

The criteria for employers and tax payers affected by Covid-19, to receive idle time benefit and tax holidays up to three years are as follows:

1. turnover has decreased by at least 30% (compared to March or April 2019); or
2. turnover in March or April 2020 (compared to March or April 2019) has decreased by at least 20% and the company meets at least one of the following criteria:

  • the company’s exports amount to 10% of its total turnover in 2019 or at least EUR 500,000;
  •  the average monthly gross salary paid by the company in 2019 was at least EUR 800;
  • long-term investments in fixed assets as at 31 December 2019 were at least EUR 500,000.
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TGS Baltic offers up-to-date information on the availability of Covid-19 crisis mitigation measures and the newest regulatory changes.

General

In accordance with Cabinet Order No. 119 of 24 March 2020, which amends Cabinet Order No. 103 On the Declaration of Emergency Situation of 12 March 2020, new restrictions take place:

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Measures in Latvia to support sectors that have suffered crisis costs due to spread of COVID-19

Today the legislator of Latvia has adopted a special temporary law on measures to prevent and manage state threats and consequences of the spread of COVID-19.

The law provides for the following measures:

General: The Cabinet of Ministers shall determine sectors that have suffered crisis costs (sectors affected by the crisis) due to the spread of COVID-19 and that are therefore subject to measures and special support mechanisms, as well as to set criteria, how to determine those who shall receive the same special support in other sectors;

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ILN Today Post

Covid-19 | Legal solutions in Latvia

Due to potential risks, on 13 March 2020 the Parliament approved decision of the Cabinet and an emergency situation was declared in Latvia until 14 April 2020 in connection with the rapid spread of coronavirus disease (COVID–19) in Europe and also in Latvia. Read more…

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Impact of Coronavirus on Employment and Business Relationships: Force Majeure and Other Important Aspects

Undertakings who have difficulty in performing their obligations to cooperation partners and employees are faced with the following questions:

  • Is the virus a force majeure event?
  • Is the aggrieved party entitled to claim amendment of the contract from the other party?

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