Tax relief measures provided for companies affected by the coronavirus (COVID-19) pandemic have been expanded in Latvia.
Legislation passed on 20 March 2020 provides state support to companies in response to COVID-19. Two of the tax relief measures were available only for companies in industries “most affected” by COVID-19 and allowed:
Regulations issued 24 March 2020 defined which industries were “most affected” by COVID-19 and include public catering, international passenger transportation, car lease, hospitality and tourism, public and cultural events, education, and fitness services.
These tax relief measures were extended on 26 March 2020 to all companies—regardless of their industry sector, provided the companies meet certain criteria:
There are other criteria for a company to qualify for the downtime support—such as compliance with tax return submission rules, payment of outstanding tax liabilities, lack of identified major tax compliance breaches, etc. In assessing taxpayer applications for the postponement of tax payments, the tax authority will assess compliance with past tax payments and tax return submissions, how cooperative the taxpayer has been, and if there have been tax assessments raised following a past tax audit.
For more information, contact a KPMG tax professional in Latvia:
Ilze Berga | +371 67 038 000 | firstname.lastname@example.org
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