Riga, November 24, LETA. Several existing support mechanisms for the population and entrepreneurs affected by the Covid-19 crisis will continue to apply in 2021, the government and the Crisis Management Council agreed on a joint meeting on Tuesday.
Last week, a working group chaired by Minister of Finance Jānis Reirs (JV) to support entrepreneurship and employees considered proposals submitted by line ministries to improve the provisions of the Covid-19 Infection Management Act. Ministries submitted proposals for statutory special support mechanisms and expenditures directly related to the containment of Covid-19.
One of the proposals is to extend by six months the period during which companies can apply for an extension of the tax payment deadline. The current regulation provides for such a possibility until the end of this year, but with changes in the law, such a possibility will be until 30 June 2021.
Also, the possibility for state and local government institutions to exempt merchants and other economic operators, associations and foundations from rent will be extended for six months – until 30 June next year.
The possibility for employers to apply the Labor Law more flexibly by paying an employee 70% of the salary during downtime instead of 100% has also been extended. The current version allows for a derogation until the end of this year, but this derogation will apply until 30 June next year.
The amendments to the law also extended the term during which the recipient of a state loan can defer the planned principal payments.
The possibility to defer payments to creditors included in the insolvency plan of a natural person will be extended until 30 June next year, while extending the term of the insolvency procedure to ensure that the debtor’s chances of receiving a second option are not jeopardized by the current situation.
Until June 30, 2021, the possibility included in the law to determine a longer term of action of the legal protection process action plan will also be extended, in order not only to promote the application of legal protection processes, but also to provide businesses with greater opportunities to overcome existing financial difficulties.
Also in 2021, local governments will have the right to set other real estate tax payment terms.
Throughout 2021, the possibility will also be provided for economic operators who pay personal income tax (PIT) in accordance with the general procedure, also for 2021 not to make PIT advance payments from economic activity income.
Also, the right of a member of an association or cooperative society to participate and vote at the general meeting of members remotely has been extended for one year or until 31 December 2021.
The law has also been supplemented with a clause stipulating that the Cabinet of Ministers shall determine the procedure and criteria for granting downtime support and support for wage subsidies in the circumstances of an emergency situation.
The amendments to the law also provide for the possibility to hold a meeting of the founders of a political party remotely. A sworn notary will not participate in such a remote meeting of the founders of the party, but each founder will come to any sworn notary within ten days after the meeting of the founders and certify with his / her signature the consent to the decision on the establishment of the party. Upon receipt of a sworn notary’s certificate, the application for the establishment of a party will have to be submitted to the Register of Enterprises.
The final decision on amendments to the law will be made by the Saeima.
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