On Thursday, 18 March, the Saeima adopted in the final reading urgent law amendments introducing a number of relief measures to help entrepreneurs overcome the crisis caused by the COVID-19 pandemic.

The amendments extend the deadline for submitting the annual statement of income and paying personal income tax. Performers of economic activity will be allowed to submit the annual statement of income for 2020 by 1 July 2021, and the calculated tax amount will have to be paid into the single tax account by 23 July. Until now, the statement had to be submitted to the State Revenue Service by 1 June, while the calculated tax amount was to be paid by 23 June.

When calculating the personal income tax based on economic activity in 2020 and 2021, the present expenditure ceiling amounting to 80 % of income shall not apply to performers of economic activity. According to the explanatory note of the amendments, this measure is important because currently the number of entrepreneurs working at a loss is growing rapidly due to the crisis. 

The amendments also stipulate that capital companies with a monthly turnover exceeding 2500 euros will not have to pay personal income tax and social contributions from the minimum wage until the end of 2021 if such a company has not had any employee or board member receiving at least the minimum wage.

In order to facilitate the recovery of the restaurant and catering sector from the COVID-19 crisis, local authorities are now obliged to coordinate, as a matter of priority and in a shorter time-frame, street sales on outdoor terraces, tasting stands, mobile catering units, and other outdoor dining areas at no extra charge.

To support providers of commercial transport services, in the restricted access territory of Riga International Airport, the amendments will allow taxi services using vehicles the age of which does not exceed seven years since its first registration, and the requirement for prepaid vouchers has also been postponed. Until now, passengers at the airport could only be serviced by taxi vehicles that do not exceed the age of five, and taxi services also had to offer the possibility of paying for the trip in advance.   

The amendments also provide for other support measures, including an extension of the deadline for submitting annual reports for 2020 for companies, public organisations, religious organizations, and social enterprises.

According to the explanatory note, the Law was amended to improve and stabilise the economic situation affected by the COVID-19 pandemic.

The Law will enter into force on the day following its promulgation. 

Saeima Press Service