On 20 March 2020, the Latvian Parliament passed a special law on support measures related to the COVID-19 pandemic. The law took effect retrospectively on March 12, 2020, when a state of emergency was declared in Latvia.
Companies on a state- approved list of selected industries that cannot meet their tax payments as a direct result of COVID-19 can postpone their payment obligations for up to 3 years without triggering late-payment penalties. In the event of a deferral of tax payment obligations, no interest will be charged and the company will not be included in the list of tax payers of the Latvian state financial service.
All companies can delay the submission of their annual reports for 2019 by three months. This means a new deadline of 31 July 2020 for companies that normally submit their annual reports by 30 April and a new deadline of 30 October 2020 for companies that normally submit their annual reports by July 31, 2020. Until 1 September 2020, the law limits the right of creditors to file for bankruptcy and provides certain procedural protection for debtors, e.g. on enforcement of commercial pledges.
