COVID-19 In Latvia: FAQs By Taxpayers

• Published date: 02 August 2021
• Subject Matter: Tax, Coronavirus (COVID-19), Tax Authorities, Property Taxes, Operational Impacts and Strategy
• Law Firm: Cobalt Legal
• Author: Sandija Novicka

What kind of state support measures are put into effect in the field of taxation?

In the field of taxation the following support measures are available to taxpayers affected by COVID-19:

• possibility to defer or split into installments accrued and current tax payments for a period up to 3 years, without paying late payment interest. Taxpayers can apply for this measure until 30 June 2021 and it shall be done via EDS within 15 days from the due tax payment term.

In accordance with the Regulation of the Cabinet of Ministers possibility to defer or split delayed tax payments into installments for a period up to 3 years, without paying late payment interest will be available to any company affected by COVID-19, whose turnover from commercial activity during the respective 2020 and 2021 months has decreased by not less than 20% in comparison to the average monthly turnover in August, September and October of 2020, when the undertaking had actually operated.

• municipalities have the right to determine other deadlines for the payment of the immovable property tax in 2020 and 2021 postponing them to a later period within the same taxation year The late payment charge pursuant to Article 29 paragraph two of the law On Taxes and Duties shall not be calculated for the tax payment for which the municipality has determined another deadline and that has been made within the deadline stipulated by the municipality;
• the tax authority is not obliged to adopt negative decisions in respect of participants of the enhanced cooperation program until year 2023 if the respective participant is affected by the Covid-19 crisis.
• individual economic operators are released from the obligation to make advance PIT payments in year 2021, without paying late payment interest;
• more favourable CIT regime is established in respect to donations and gifts in order to reduce consequences by the spread of Covid-19.

Is it possible for other tax payers to defer the payment of taxes?

Tax payers that do not meet any of the above criteria can ask to defer...