Background information

The duty to perform the advance payments of personal income tax for the income from economic activity for the payer of personal income tax has been cancelled. The measure is applicable to advance payments from 1 January 2020. The measure is set in force in Section 5 of the law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of Covid-19” (adopted on 20 March 2020, valid from 22 March 2020).

Content of measure

Usually, in compliance with the Section 18 of the law On Personal Income Tax, concurrently with the tax declaration, submitted not later than until 1 June of the post-taxation year, the State Revenue Service calculate the size of advance payments in the taxation year for the payer on the basis of the income of the previous year. The payer who has commenced the economic activity in the taxation year has the right, within 30 days after commencement of economic activity, to voluntarily submit a calculation for the size of advance payments in the taxation year by forecasting the expected income. Section 5 of a Law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of Covid-19” determines that a payer of personal income tax has not a duty to perform the advance payments of personal income tax for the income from economic activity for the taxation year of 2020. This condition is applicable to advance payments from 1 January 2020. The payer of personal income tax may perform the advance payments of personal income on a voluntary basis. Taxpayers who have already made the first advance payment (until 15 March 2020), can recover the money from State Revenue Service.

Use of measure

No information to date.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

N/A

Views and reactions

As far as we know social partners participate in discussions on measures for the prevention and suppression the spread of COVID-19 and on crisis impact on economy. However specific opinions of social partners are not published.

Sources

• 09 April 2020: Law On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19 (likumi.lv)
• 09 April 2020: State Revenue Service informative page on COVID-19 (www.vid.gov.lv)