Covid-19, Crisis, Financial Services, Latvia, Markets and Companies

International Internet Magazine. Baltic States news & analytics Friday, 05.06.2020, 15:32

Latvia Covid-19: Downtime regulation to be applied also to companies with tax debts

BC, Riga, 02.04.2020.Print version
The Latvian government on Tuesday decided to apply the downtime regulation also to crisis-hit companies with outstanding tax debts, which means that their employees will be able to receive downtime pay and the companies will be able to seek deferral for their overdue tax payments, informed LETA.

According to the new amendments approved by the government, the downtime pay will be provided to employees of companies whose tax debts do not exceed EUR 1,000.

A company with tax debts bigger than EUR 1,000 has to negotiate tax deferral or an agreement on voluntary tax payment with the State Revenue Service, so that its employees can claim downtime pay.

Under the previous regulation, the State Revenue Service did not grant downtime pay to employees of companies whose tax debts exceeded EUR 150 as at March 7 and that had not negotiated tax deferrals. 

As reported, companies that meet certain criteria can apply for downtime benefits for their employees, up to 75% of their salaries but not more than EUR 700 a month. Self-employed persons and microenterprise employees are also eligible for downtime benefits.

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