The Cabinet of Ministers confirmed the criteria and procedure for obtaining support in which companies of any industry that were affected by the COVID-19 crisis can receive allowance for idle time and tax deferral thereof for up to three years.
Question: What is an idle time?
Answer: The idle time is when the employer does not provide work to an employee or does not perform the activities necessary for the acceptance of employee’s obligations due to the spread of COVID-19.
Question: Who is entitled to receive allowance for idle time and division of the payment for late tax payments in instalments or deferral thereof for up to three years?
Answer: The companies are entitled to apply for the allowance for idle time and the division of the payment for late tax payments in instalments or deferral thereof for a period of up to three years if:
Question: What conditions must be met to receive allowance for idle time?
Answer: The following conditions must be met in order to receive allowance for idle time:
Question: What are the conditions to apply for the division of the payment of late tax payments in instalments or deferral thereof for a period of up to three years?
Answer: The State Revenue Service decides on the division of payment of the company’s tax debt or on providing the company with a tax holiday of up to three years based on the conditions specified in article 24 of the Tax and Duty Law:
Question: Which industry companies are entitled to receive allowance for idle time and division of the payment of late tax payments in instalments or deferral thereof for a period of up to three years?
Answer: Companies operating in ANY INDUSTRY are entitled to receive allowance for idle time and division of the payment of late tax payments in instalments or deferral thereof for a period of up to three years.
Question: What amount is provided for allowance for idle time?
Answer: The allowance for the idle time shall be determined in the amount of 75 % of the average monthly gross work remuneration for the period of last six months before the declaration of the emergency situation by considering the information at the disposal of the State Revenue Service (data declared by the employer to the State Revenue Service), or in accordance with the actual data declared by employees within the previous six months, but not exceeding EUR 700 per calendar month.
Question: How can I apply for a idle time allowance or division of the payment of late tax payments in instalments or deferral thereof for a period of up to three years?
Answer: An application to receive allowance for idle time or division of the payment of late tax payments in instalments or deferral thereof for a period of up to three years must be submitted in the electronic declaration system of the State Revenue Service: https://eds.vid.gov.lv/