Tax incentives to support entrepreneurs
20 March 2020
On March 20, 2020, Parliament (Saeima) adopted the Crisis Act “On measures to prevent and manage national threats and consequences of Covid-19” which includes a series of proposals aimed at mitigating the negative consequences of the COVID-19 epidemic for businesses:
- To postpone personal income tax (PIT) advance payment in 2020;
- Provision for taxpayers to defer payment of late tax payments in sectors identified by the Cabinet of Ministers for up to three years if the delay is due to the impact of COVID-19;
- Refund the validated value added tax (VAT) amount to all taxpayers within 30 days of the VAT filing deadline, without accruing until the end of the tax year, with effect from April 1st, 2020. It is also provided to return the confirmed amount of VAT currently accrued until the end of 2020, in accordance with the VAT returns already submitted for January and February 2020;
- Deadline for the preparation and submission of the Annual report of companies is extended to 31 July 2020.
This publication has been carefully prepared, however it is written in general terms and should be considered as general informative material. The team of BDO Law will follow the development of the current situation and publish up-to-date information as soon as any changes will come into effect. Please contact BDO Law to discuss your particular situation!