State aids for companies in Latvia hit by Covid-19
Latvia’s government offers support mechanisms to companies affected by the Covid-19 crisis.
With winter upcoming and the second wave of infections on the rise, the Latvian Government has renewed and prolonged the state of emergency in the country.
To mitigate its economic effects, as of 12 November 2020 the state offers several support mechanisms for companies whose turnover is negatively affected by domestic or international restrictions due to the fight against the spread of Covid-19.
Three support tools will be available:
- state aid for idle employees;
- state aid in the form of a subsidy to wage payments;
- a subsidy to current assets for entrepreneurs.
Support will be available to all companies:
- whose activities have been affected and restricted by the decision of the Cabinet of Ministers on notification of the emergency situation;
- whose turnover shows a 20 % drop against the average in comparison to August, September and October 2020.
State aid for idle employees is provided for the period from 9 November 2020 to 31 December 2020. The idle support will be 70 % of the average salary declared by the company for three months (August, September, October 2020).
State aid for wage payments will be available to entrepreneurs in the amount of 50 % of the declared average monthly gross wages for the period from 1 August to 31 October 2020.
Finally, the subsidy to current assets for entrepreneurs will be available in the amount of 30 % of the total amount of the company’s gross wages, for which salary taxes have been paid in August, September and October 2020.
The support package is administered by the state revenue service (VID) and will be handled through the electronic declaration system (EDS).
Source: Cabinet regulations of 10 November 2020 regarding provision of aid to taxpayers for continuation of their activities during the emergency situation.