Self-employed and royalty recipients will also be able to apply for support to compensate for the loss of income / Article / LSM.lv

November 10 government approved support mechanisms Covid-19 to affected taxpayers, including in the cultural sector. Legal entities – companies and non-governmental organizations, as well as natural persons – self-employed, sole proprietors, royalty recipients and patent payers, whose activities have suffered as a result of the restrictions imposed on the spread of the pandemic, informed the Ministry of Culture. –

IN SHORT

• Self-employed people, sole proprietors, royalty recipients and patent payers will also be able to receive support to compensate for the loss of income.
• The aid will not be granted to self-employed persons and micro-enterprise taxpayers with a tax debt of more than EUR 1000.
• No support will be provided to a self-employed person in insolvency proceedings.
• No support will be provided to the self-employed supported by the target program of the State Cultural Capital Fund.
• Companies and non-governmental organizations will be able to apply for support for downtime and part-time employees, as well as subsidies for companies’ working capital.

Self-employed persons – those who have registered with the State Revenue Service (SRS) as economic operators, recipients of royalties who have not registered as economic operators, sole proprietors, as well as payers of patent fees – will be able to apply for support to compensate for the loss of income.

Self-employed persons working under the general tax regime, recipients of royalties who are not registered as economic operators and sole proprietors whose economic activity has ceased as a result of the established restrictions or whose income from economic activity has decreased by at least 20% (compared to this year August, September and October) will be eligible for 75% of the average operating income or royalties in the third quarter of this year (excluding royalties received by authors and performers and income from collecting societies), but not more than 1,000 euros.

Self-employed persons who are micro-enterprise taxpayers will be able to receive 50% of the average monthly income for the 3rd quarter of this year. Patent payers will be able to receive support in the amount of 330 euros.

SRS support will not be granted to those self-employed persons and micro-enterprise taxpayers whose tax debt on the day of submission of the application will be more than 1,000 euros, and the debt has not been extended or no agreement on voluntary tax payment has been concluded.

Support will not be provided to a self-employed person in the process of insolvency, for sickness benefit days, as well as to self-employed persons supported by the target program of the State Cultural Capital Fund.

During the period when the self-employed person has been granted support, the sickness benefit will not be paid and the municipal benefit in a crisis situation will not be paid.

Companies and non-governmental organizations active in the cultural sector will be able to apply for support for downtime workers, support for wage subsidies for part-time workers and subsidies for company working capital.

Aid for idle workers will be paid in the amount of 70% of the declared average gross salary for the period from 1 August to 30 October this year for general employees and 50% for employees of micro-enterprises, provided that the aid amount may not be less than 330 euros and more than 1,000 euros. Support for several employers is granted to those working simultaneously, taking into account the workload of each employer. Support for downtime employees may not exceed 80% of the salary of each employer.

The wage subsidy for part-time employees is set at 50% of the declared average gross monthly wage for the period from 1 August to 30 October this year, but not more than 500 euros, obliging the employer to pay the difference between the received support and full-time employment. payment. Entrepreneurs will be able to use both types of support at the same time, applying for downtime benefits to those employees who do not perform their duties as a result of restrictions, and to employees who continue to work to receive a wage subsidy.

A working capital subsidy for businesses will be available in the amount of 30% of the total gross salary of the company, for which salary taxes were paid in August, September and October 2020, but not more than 50,000 euros for the support period and no more than 800,000 euros related group of persons.

The aid measures run from 9 November to 31 December.

Legal and natural persons whose main activity is registered in the SRS in one of the NACE codes of the statistical classification of economic activities specified in the Annex to the Cabinet of Ministers Regulations “Regulations on Provision of Support to Taxpayers for Continuation of Their Activities in Emergency Situations” approved on 10 November are eligible for support.

In order to apply for support, companies and the self-employed must apply to the SRS by filling in the information required for applying for support in the electronic declaration system (EDS).

CONTEXT:

During the Covid-19 outbreak in the spring, an emergency situation was declared in Latvia to control the new coronavirus. The situation was stable in the summer, but the morbidity at the end of September fast increased. The government tightened security measures, but the incidence of Covid-19 continued to rise.

In November, in order to limit the spread of Covid-19 in Latvia, the government decided to re-declare a state of emergency in the country, which will be in force from November 9 to December 6, and during which there will be new, stricter restrictions.

In particular, all on-site public cultural events will be canceled and banned by 6 December. Museums, libraries, cultural centers and other cultural sites will be able to continue the work during the limited working hours – from 06.00 to 20.00, by refusing to organize events.

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