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Latvia: Tax relief included in government’s response to coronavirus (COVID-19)

Latvia: Tax relief included in response to coronavirus

The government of Latvia announced tax relief measures to support businesses in response to the coronavirus (COVID-19) pandemic.

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In general, through 30 June 2020, tax relief allows for:

  • Postponement of current and overdue tax payments, for up to three years, or the ability to make instalment payments when the delay is related to COVID-19 without triggering late-payment penalties; a request must be submitted to the tax authority
  • A quicker process for refunds of input value added tax (VAT); beginning 1 April 2020, the tax authority will refund the approved input VAT within 30 days after the due date of submitting the VAT return (and not until end of the tax year), and the faster refund of input VAT will also apply for January and February 2020
  • Cancellation of advance payments of individual (personal) income tax for self-employed individuals, and no late-payment fees for failure to remit the advance payments
  • Postponement of real estate tax payments to be allowed by municipalities
  • Submissions of financial statements (annual report and consolidated annual report) may be made later than the legal deadline (three or four months, respectively)

Other COVID-19-related measures provide that employees of companies in industries most affected by COVID-19 will be paid by the government at a rate of 75% of their salaries capped at €700, and plans are being evaluated how the state could pay sick leave payments to COVID-19 patients and persons in quarantine, instead of payments being made by employers. 

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