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LEGAL ACTS OF THE REPUBLIC OF LATVIA
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The Saeima1 has adopted and
the President has proclaimed the following law:

Law on the Suppression of Consequences of the Spread of COVID-19 Infection

Section 1. The purpose of the Law is to restore the general legal order after the end of the specified term of the emergency situation, providing for a set of appropriate measures for the suppression of consequences of the spread of COVID-19 infection (hereinafter - COVID-19) (hereinafter also - the crisis caused by COVID-19) and the special support mechanisms and expenditures directly related to the containment of the spread of COVID-19 in order to ensure the improvement of the economic situation of the society and to promote the stability of the national economy.

Section 2. Upon assessing the economic situation, the Cabinet shall determine the criteria and procedures for the application of the measures and special support mechanisms specified in Sections 4 and 15 of this Law to the taxpayers affected by the crisis caused by COVID-19. Where necessary, the Cabinet shall determine the sectors where the financial situation has significantly deteriorated due to the spread of COVID-19.

Section 3. The applicants who, within the meaning of the Public Procurement Law, are legal persons or associations of persons registered in an offshore or who are legal persons registered in Latvia in which the owner or holder of more than 25 per cent of capital shares (stocks) is a legal person or association of persons registered in an offshore shall be excluded from the group of recipients of the State aid and State-guaranteed aid measures.

Section 4. (1) A taxpayer who has been affected by the crisis caused by COVID-19 has the right to apply for an extension of the time limit for the payment of taxes by 30 December 2020, and also to request that an extension of the time limit for the payment of taxes is granted to the late tax payments the time limit for the payment of which has been extended in accordance with Section 24 of the law On Taxes and Duties if the delay has occurred due to the spread of COVID-19. The taxpayer shall, not later than within 15 days after the payment falls due, submit a justified submission to the tax administration. The tax administration has the right to divide the payment for late tax payments in instalments or to defer it for a period of up to three years as of the date of submitting the submission.

(2) The late payment charge specified in Section 29, Paragraph two of the law On Taxes and Duties shall not be calculated for the late tax payment for which an extension of the time limit for the payment of taxes has been granted in accordance with Paragraph one of this Section.

(3) If an extension of the time limit for the payment of taxes has been granted to a taxpayer in accordance with the procedures laid down in this Section, information regarding the taxpayer shall not be included in the database of tax (duty) debtors administered by the State Revenue Service.

(4) The tax administration has the right to revoke the decision to extend the time limit for the payment of taxes if the taxpayer:

1) fails to comply with the time limit specified in the decision to extend the time limit for the payment of taxes;

2) fails to make the current payments of taxes in full amount within the time limit specified in tax laws;

3) does not make, within the specified time limits, payments of taxes the time limit for the payment of which has been extended in accordance with the procedures laid down in Section 24 of the law On Taxes and Duties;

4) fails to make payments of taxes for which the tax administration has taken the decision on voluntary execution of late tax payments.

(5) If the decision to extend the term for the payment of taxes is revoked, the late payment charge shall be calculated for the portion of the outstanding debt for the entire period of delay according to the general principles and the late tax payments shall be recovered in accordance with the procedures laid down in the law On Taxes and Duties.

Section 5. Local governments have the right to determine other time limits for the payment of the immovable property tax in 2020 which are different from the time limits determined in the law On Immovable Property Tax, postponing them to a later period within the scope of 2020. The late payment charge specified in Section 29, Paragraph two of the law On Taxes and Duties shall not be calculated for the tax payment for which the local government has determined another time limit for payment and which has been made within the time limit stipulated by the local government.

Section 6. A payer of personal income tax shall not make the advance payments of personal income tax for the income from economic activity specified in Section 18 of the law On Personal Income Tax for the taxation year 2020. This condition shall be applicable to advance payments from 1 January 2020. The payer of personal income tax may make the advance payments of personal income tax for the income from economic activity for the taxation year of 2020 on a voluntary basis.

Section 7. Donations of goods and services to the social groups negatively affected by the emergency situation (without specifying the donee for the purposes of personal income tax application), and also to persons whose main activity is the provision of health services, provision of education, charity, aid to socially low-income persons, persons with disability or children shall be considered as expenditures related to the economic activity of an enterprise income taxpayer within the time period from the day when the emergency situation in relation to the spread of COVID-19 was declared until 31 December 2020, provided that the following conditions are concurrently met:

1) the donee is not a person related to the taxpayer;

2) the information regarding the donation is made public;

3) the information regarding the donee and the aid sum is submitted to the State Revenue Service together with the return for the last month of the reporting year.

Section 8. A payer of enterprise income tax who has made donations to reduce the consequences of the spread of COVID-19 within the period from the day when the emergency situation in relation to the spread of COVID-19 was declared until 31 December 2020 is entitled, in conformity with Section 12 of the Enterprise Income Tax Law, to increase the amount of donations not to be included in the base taxable with the enterprise income tax in the taxation period as specified in Paragraph one, Clause 1 of the abovementioned Section by three more percentage points of the profits of the previous reporting year after the calculated taxes.

Section 9. (1) The procedures for the refund of the value added tax overpaid until 31 December 2020 shall be determined by this Law, and the procedures laid down in Sections 109 and 110 of the Value Added Tax Law shall not be applicable.

(2) Upon implementing tax administration measures, the State Revenue Service shall refund the approved overpaid amount of value added tax which has been indicated in the value added tax return submitted to the State Revenue Service after 31 March 2020 within 30 days after:

1) the time limit for submitting the value added tax return laid down in Section 118 of the Value Added Tax Law;

2) the day of submitting the value added tax return if it has been submitted after the time limit for submitting the value added tax return laid down in Section 118 of the Value Added Tax Law;

3) the day of submitting the adjusted value added tax return if an adjusted value added tax return has been submitted.

(3) The State Revenue Service shall, prior to refunding the approved overpaid amount of value added tax, cover the taxes and duties of the taxpayer administered by the State Revenue Service, other payments stipulated by the State and the payments related thereto in accordance with the procedures laid down in the law On Taxes and Duties.

(4) The State Revenue Service shall refund the approved overpaid amount of value added tax which has arisen for the value added tax group to the principal undertaking.

(5) The State Revenue Service shall refund the approved overpaid amount of value added tax which has arisen for a person excluded from the State Revenue Service Value Added Tax Taxable Person Register within 30 days after the decision to exclude the registered payer of value added tax from the State Revenue Service Value Added Tax Taxable Person Register has been taken.

(6) If the time limit for the approval of the overpaid amount of value added tax was extended until 31 March 2020 in accordance with Section 110 of the Value Added Tax Law, the State Revenue Service shall refund the approved overpaid amount of value added tax not later than on the following working day after approval of validity of the overpaid amount of value added tax.

Section 10. (1) The permit issued by the State Revenue Service to the taxpayer (except for medical treatment institutions and veterinary medicine institutions, and pharmacies) to purchase alcoholic beverages subject to exemption from the excise duty for the purchase of such undenatured alcohol which is intended for the use in the production of disinfectants shall expire on the day following the end of the emergency situation. The abovementioned taxpayer shall, on the day following the end of the emergency situation, make an inventory of the remainder of undenatured alcohol and shall declare the established remainder to the State Revenue Service, additionally indicating the activities planned with the undenatured alcohol.

(2) Within a month from the day when the permit referred to in Paragraph one of this Section has expired, the taxpayer shall do the following with the abovementioned remainder of undenatured alcohol:

1) without the permit of the State Revenue Service, send back to the supplier;

2) with the permit of the State Revenue Service, move or sell it to the tax warehousekeeper who has the right to operate with alcohol. In order to receive the abovementioned permit, a contract for the sale of undenatured alcohol to the relevant tax warehousekeeper shall be appended;

3) destroy in the presence of an official of the State Revenue Service;

4) hand over for denaturation to the tax warehousekeeper who has the right to denature alcohol and receive the permit for the purchase of denatured alcohol for the production of disinfectants.

Section 11. Alcoholic beverages may be sold using a distance contract. Alcoholic beverages may not be sold to persons who are younger than 18 years of age and in the time period from 22.00 to 8.00.

Section 12. Upon assessing the actual implementation of the revenues from personal income tax for the previous quarter in comparison with the projected revenues in accordance with the division in percentage specified in the law On the State Budget for 2020, the Cabinet may take the decision on the procedures for and the amount in which the non-implementation of the revenue projection from personal income tax shall be compensated to local governments.

Section 13. In 2020, 2021, 2022, and 2023, the State Revenue Service is entitled to not take a negative decision in relation to the participants of the In-depth Cooperation Programme if they have been affected by the crisis caused by COVID-19 and they prove the existence of the objective circumstances.

Section 14. (1) State and local government institutions, and also derived public persons and capital companies controlled by a public person, free ports, and special economic areas shall, by 31 December 2020, exempt merchants and other performers of economic activity, associations and foundations affected by the emergency situation determined due to the spread of COVID-19 from lease payment for a public person property and a property of a capital company controlled by a public person or decide on reduction of the lease payment, and also shall not apply late interest and contractual penalties in case of a late payment, except for the payment for the services consumed - electricity, thermal energy, water supply, and other services related to the maintenance of the property.

(2) The Cabinet shall determine the procedures by which the measures specified in Paragraph one of this Section shall be applied.

(3) Costs incurred upon granting the aid provided for in this Section shall not be compensated to the lessor directly from the State budget.

Section 15. (1) If an employer affected by the crisis caused by COVID-19 does not provide work to an employee or does not perform the activities necessary for the acceptance of employee's obligations (furlough), a remuneration shall be compensated to the employee in accordance with the procedures and in the amount stipulated by the Cabinet in the amount of up to 75 per cent from the amount of the average remuneration of the previous six months but not more than EUR 700 per calendar month (furlough allowance). In such case the employer need not apply Section 74 of the Labour Law.

(2) Furlough allowance and the furlough assistance allowance stipulated by the Cabinet shall be granted for the period from 14 March 2020 to 30 June 2020, and they shall not be taxable with the personal income tax and subject to the mandatory State social insurance contributions. The disbursement of the furlough allowance is discontinued if during the period of receipt thereof the employer increases the number of employees in comparison with the number of employees as at the moment of the beginning of furlough, or terminates furlough due to the renewal of operation. The decision to refuse to grant the furlough allowance may be contested and appealed by the addressee of the administrative act in accordance with the procedures laid down in the Administrative Procedure Law.

(3) The Cabinet may determine other support measures for the taxpayers affected by the crisis caused by COVID-19.

(4) If the furlough allowance has been requested or received unjustifiably or the employer affected by the crisis, during the period of disbursement of the furlough allowance, increases the number of employees in comparison with the number of employees as at the moment of the beginning of furlough, or terminates furlough due to the renewal of operation, the employer affected by the crisis shall voluntarily repay the granted furlough allowance or the State Revenue Service shall recover it by applying the provisions of the law On Taxes and Duties.

(5) A medical treatment institution which has concluded a contract for the provision of State paid health care services and to which, according to the procedures stipulated by the Cabinet, a compensation payment for ensuring standby is disbursed during the emergency situation shall disburse a remuneration to the employee in the amount of up to 75 per cent of the amount of the average remuneration for the previous six months if the medical treatment institution does not provide work to such employee or does not perform the activities necessary for the acceptance of employee's obligations (furlough); however, the remuneration shall not exceed the triple of the amount of the average monthly remuneration for work for the workforce in the State as published in the official statistical notification of the Central Statistical Bureau of the previous year. In such case the medical treatment institution need not apply Section 74 of the Labour Law.

Section 16. (1) For the provision of false information to the State Revenue Service to receive the furlough allowance, a fine of up to three hundred fine units shall be imposed on a natural person or a board member, with or without deprivation of the board member's right to hold specific positions in commercial companies.

(2) Administrative offence proceedings for the offence referred to in Paragraph one of this Section shall be conducted by the State Revenue Service.

Section 17. (1) Until 31 December 2020, an employer who conforms to the criteria specified for the participants of the In-depth Cooperation Programme and who has been adversely affected by the crisis caused by COVID-19 may:

1) reduce the remuneration for furlough specified in Section 74 of the Labour Law for an employee to 70 per cent of the salary to be disbursed to the employee, taking into account the following conditions:

a) the amount of remuneration to be maintained shall be not less than the minimum monthly salary;

b) in addition to that laid down in Sub-clause a) of this Paragraph, funds in the minimum amount of the maintenance specified by the State for each dependent child shall be maintained for an employee upon whom a minor or a child who continues acquiring the general, vocational, higher or special education but has not yet reached 24 years of age is dependent;

2) grant the unused annual paid leave to an employee, without complying with the provisions of Section 150, Paragraph two of the Labour Law.

(2) The employee who does not agree with the reduction in the remuneration referred to in Paragraph one, Clause 1 of this Section has the right to give a notice of termination of the employment contract, without complying with the time period specified in Section 100, Paragraph one of the Labour Law. In such case the employer has an obligation to disburse a severance pay to the employee in the amount specified in Section 112 of the Labour Law.

Section 18. (1) It may be provided for in the collective agreement concluded with the trade union, upon mutual agreement and without reducing the total level of protection of employees, that in case of temporary fall in the production a part-time work shall be determined for an employee. Changes to a collective agreement may be valid not longer than by 31 December 2020. The following conditions shall be applicable to the remuneration to be disbursed to an employee:

1) the amount of remuneration to be maintained shall be not less than the minimum monthly salary;

2) in addition to that laid down in Clause 1 of this Paragraph, funds in the minimum amount of the maintenance specified by the State for each dependent child shall be maintained for an employee upon whom a minor or a child who continues acquiring the general, vocational, higher or special education but has not yet reached 24 years of age is dependent.

(2) The employee who does not agree with determination of part-time work referred to in Paragraph one of this Section has the right to give a notice of termination of the employment contract, without observing the time period specified in Section 100, Paragraph one of the Labour Law. In such case the employer has an obligation to disburse a severance pay to the employee in the amount specified in Section 112 of the Labour Law.

Section 19. (1) A person who, within a year prior to the declaration of the emergency situation, has graduated from a higher education institution or college where he or she has acquired a higher education and who has obtained the status of unemployed person during the emergency situation or within three months after the end thereof has the right to the allowance for young specialists if the total length of the period of insurance (employment) is less than one year, and over the period of the last 16 months prior to the day of obtaining the status of unemployed person the contributions for unemployment have been made for the unemployed person for less than 12 months or have not been made at all.

(2) In the cases referred to in Paragraph one of this Section, the allowance for young specialists shall be disbursed for the first two months in the amount of EUR 500 but for the third and fourth month in the amount of EUR 375. The allowance shall be disbursed until the moment when the person loses the status of unemployed person but no longer than for four months and no later than until 31 December 2020.

Section 20. In order to ensure the rights of the public to objective information regarding the refusal to grant the support measures laid down by this Law, the civil servant (employee) of the tax administration may, without the consent of the taxpayer, provide information on the reasons due to which the following has been decided in relation to the taxpayer:

1) an extension of the time limit for the payment of taxes referred to in Section 4, Paragraph one of this Law has not been granted or the decision to extend the time limit for the payment of taxes has been revoked;

2) granting of the furlough allowance has been refused or it has been granted, but it is established that the requesting or receiving of furlough allowance has not been justified.

Section 21. (1) The holder of the Commercial Pledge Register shall, within 60 days, take the decision on exercising the commercial pledge referred to in Section 42, Paragraph six of the Commercial Pledge Law.

(2) Upon hearing civil cases and deciding on the term for voluntary enforcement of the judgment in accordance with Section 204.1 of the Civil Procedure Law, the court may specify it as not exceeding 60 days, except when the judgment is to be enforced without delay.

(3) An application for the undisputed compulsory enforcement of liabilities or voluntary sale of immovable property by auction through the court in accordance with the procedures laid down in the Civil Procedure Law may only be submitted if a warning has been issued to a debtor within the meaning of the Law on Extrajudicial Recovery of Debt at least 60 days prior to submitting the application.

(4) A creditor or a provider of debt recovery service, upon commencing the recovery of a debt, shall notify the debtor in writing of the existence of a debt and invite to fulfil the late payment liabilities voluntarily, indicating information in the notice regarding the possibility of expressing justified written objections regarding the existence, amount, and payment time limit of the debt and determining a time limit for expressing objections which is not less than 60 days from the day of receipt of the notice.

(5) A creditor may submit a notarial deed to a sworn notary for assignment for compulsory enforcement within one year but not earlier than 60 days from the day when the term for the execution of the relevant liability became due.

(6) The provisions of this Section shall be applicable until 1 September 2020.

Section 22. Until 1 September 2020, creditors are prohibited from submitting an application for insolvency proceedings of a legal person if any of the features of insolvency proceedings of a legal person referred to in Section 57, Paragraph one, Clause 1, 2, 3, or 4 of the Insolvency Law exists.

Section 23. (1) An undertaking to which the Law on the Annual Financial Statements and Consolidated Financial Statements applies is entitled to submit the annual statement and the consolidated annual statement on 2019 within a time limit which exceeds the time limit for submission specified in Section 97, Paragraph one of the Law on the Annual Financial Statements and Consolidated Financial Statements by three months.

(2) An association or foundation which exceeds the time limit for submitting the annual statement specified in Section 52, Paragraph three and Section 102 of the Associations and Foundations Law is entitled to submit the annual statement on 2019 or part thereof to the State Revenue Service by 31 July 2020.

(3) A religious organisation the time limit for the submission of annual statements for which is determined in accordance with the Cabinet regulation regarding annual statements of religious organisations issued pursuant to Section 13, Paragraph four, Clause 2 of the law On Accounting is entitled to submit the annual statement on 2019 or part thereof to the State Revenue Service by 31 July 2020.

(4) A social enterprise is entitled to submit the activity report on 2019 referred to in Section 10, Paragraph one of the Social Enterprise Law to the Ministry of Welfare by 31 July 2020.

(5) A public benefit organisation is entitled to submit the activity report on 2019 referred to in Section 13, Paragraph one of the Public Benefit Organisation Law to the State Revenue Service by 31 July 2020.

(6) In order to approve the annual statement and the consolidated annual statement of a capital company for the reporting year of 2019, the capital company of a public person and public-private capital company to which the Law on Governance of Capital Shares of a Public Person and Capital Companies applies are entitled to convene a meeting of shareholders (stockholders) within a time limit that exceeds the time period determined in Section 54 of the Law on Governance of Capital Shares of a Public Person and Capital Companies by three months.

(7) The time limit for submitting the report on the use of a gift (donation) in 2020 provided in the contracts of gift (donation) of financial resources and property of a public person shall be extended until 31 December 2020.

Section 24. Measures for the prevention and suppression of threat to the State and its consequences due to the spread of COVID-19 shall be financed from the resources from the State budget and local government budgets allocated to the authorities financed from the budget. The Cabinet may, upon a justified request of ministries, take the decision on measures for the prevention and suppression of treat to the State as well as on allocation of funding from the State budget programme 02.00.00 "Funds for Unforeseen Events".

Section 25. The Minister for Finance has the right to make changes in appropriation, including reduction or reallocation of appropriation between the ministries and other central State institutions for measures for the prevention and suppression of threat to the State and its consequences due to the spread of COVID-19 if a relevant Cabinet decision has been adopted and the Budget and Finance (Taxation) Committee of the Saeima has examined it within five working days from the day of receipt of the relevant information and has not objected to it, and also to perform reallocation of appropriation for a ministry or another central State institution within the scope of the appropriation specified in the law among programmes, sub-programmes, and expenditure codes according to the economic categories.

Section 26. The Minister for Finance has the right to increase the appropriation specified in the law On the State Budget for 2020 in the programme 02.00.00 "Funds for Unforeseen Events" of the budget unit "74. Funding to be Reallocated in the Process of Implementation of the Annual State Budget" and to extend the permissible limits of the government action for the carrying out of the government obligations if a relevant Cabinet decision has been adopted and the Budget and Finance (Taxation) Committee of the Saeima has examined it within five working days from the day of receipt of the relevant information and has not objected thereto.

Section 27. The Minister for Finance has the right, upon informing the Saeima thereof, to increase the appropriation in the programme 02.00.00 "Funds for Unforeseen Events" of the budget unit "74. Funding to be Reallocated in the Process of Implementation of the Annual State Budget" from the actual revenues in 2020 from the confiscation of the proceeds from crime which exceed the amount planned in the law On the State Budget for 2020 for the increase of work remuneration for teachers in 2020 if a relevant Cabinet decision has been adopted.

Section 28. In order to ensure funding for the measures for the mitigation and prevention of the impact of the emergency situation determined in relation to the spread of COVID-19 and the expenditures related thereto, and also for the financing of the State budget financial deficit, for the carrying out of the national debt obligations, and for ensuring of State loans, the Minister for Finance is entitled to take borrowings on behalf of the State in the necessary amount, to select instruments and conditions of borrowings, and also is entitled to increase the maximum permissible amount of the national debt specified in the law on the annual State budget at the end of the economic year and the appropriation specified for the execution of expenditures and liabilities of the national debt management if the Budget and Finance (Taxation) Committee of the Saeima has examined it within five working days from the day of receipt of the relevant information and has not objected thereto.

Section 29. (1) The Cabinet shall, on the basis of a proposal by the sectoral ministry, decide on the issuance of new State loans and recrediting of loans issued by credit institutions and their conditions, or the change in the conditions of the contracts of State loans already issued and the conditions of the security contracts related thereto for the mitigation and prevention of the consequences of the crisis caused by COVID-19 and for the support to the national economy. The Cabinet has the right to increase the total increase of State budget loans specified in the law on the State Budget for the current year if the Budget and Finance (Taxation) Committee of the Saeima has examined it within five working days from the day of receipt of the relevant information and has not objected thereto.

(2) If a relevant Cabinet decision has been adopted and the Budget and Finance (Taxation) Committee of the Saeima has examined it within five working days from the day of receipt of the relevant information and has not objected to it, the Minister for Finance shall make amendments to the contracts of State loans, extending the time period for issuing State loans by 12 months if the three-year period for issuing a State loan expires during the operation of this Law and an application has been received from the borrower regarding the extension of the time period for disbursing the loan and the opinion of the sectoral ministry has been received that the amendments are required for the mitigation and prevention of the consequences of the crisis caused by COVID-19.

(3) If a relevant Cabinet decision has been adopted and the Budget and Finance (Taxation) Committee of the Saeima has examined it within five working days from the day of receipt of the relevant information and has not objected to it, the Minister for Finance shall make amendments to the contracts of State loans, deferring the principal payment of the loan planned in 2020 and dividing the principal payment of the loan deferred in 2020 for a period of up to three years if an application has been received from the borrower regarding the deferral of the principal payment of a State loan and the opinion of the sectoral ministry has been received that the amendments are required for the mitigation and prevention of the consequences of the crisis caused by COVID-19.

(4) The Minister for Finance shall not increase the risk interest rate on the State loans and State guarantees if the borrower's creditworthiness or the value of the collateral provided thereby has deteriorated due to the containment of the spread of COVID-19, and a request has been received from the borrower to not increase the risk interest rate and the opinion of the sectoral ministry has been provided that it is required for the mitigation and prevention of the consequences of the crisis caused by COVID-19.

(5) The conditions of Paragraph four of this Section shall not apply to a State loan and State guarantee if they have been issued for a project or any activity thereof which is qualified as aid for commercial activity.

Section 30. If the turnover of the capital company controlled by the local government has decreased by more than 50 per cent in comparison with the respective period of 2019 due to the emergency situation declared in the State in relation to the spread of COVID-19, the local government is entitled to receive a State budget loan for increasing the equity capital of the capital company to ensure financial resources for the maintenance expenditures of the capital company. The term for repaying the loan shall be up to 12 months from the day of concluding the loan contract. The fixed State loan servicing fee shall not be applied to the loan. The contribution of the local government into the equity capital of the capital company shall be calculated without exceeding the period during which the restrictions on the main activity of the capital company imposed during the emergency situation are in force. The conditions of Sections 13 and 56 of the law On the State Budget for 2020 shall not apply to the abovementioned loan.

Section 31. After the Cabinet decision on the increase of the reserve capital for akciju sabiedrība "Attīstības finanšu institūcija Altum" [joint stock company Development Finance Institution Altum] has been taken for financing the crisis guarantee programme and the crisis loan programme, the Minister for Finance shall increase the appropriation for the Ministry of Economics for the resources from the grant from general revenue for transfer into the reserve capital of the joint stock company Development Finance Institution Altum in accordance with the procedures and in the amount stipulated by the Cabinet for financing the crisis guarantee programme and for financing the crisis loan programme.

Section 32. When the Cabinet has supported the guarantee agreement, the Minister for Finance has the right to sign the guarantee agreement with the European Commission on behalf of the Republic of Latvia on the participation in the European Union support instrument Support to Mitigate Unemployment Risks in an Emergency (SURE).

Section 33. The conditions of Section 7, Paragraph three, Section 9, and Section 12, Paragraph three of the Fiscal Discipline Law shall not be applicable in 2020 and 2021.

Section 34. Upon implementing the measures referred to in this Law which conform to the features specified in Section 5 of the Law on Control of Aid for Commercial Activity, the requirements of the regulation of control of aid for commercial activity are conformed to.

Section 35. During the time period from 1 April 2020 to 1 September 2020, the late payment interest on default of the performance of civil obligations may not exceed the lawful interest.

Section 36. During the time period from 12 March 2020 to 1 July 2020, the running of the prescriptive period of obligations rights specified in laws are suspended, and this time period shall be deducted from the calculation of the prescriptive period.

Section 37. (1) Until 31 December 2020, a member of an association or cooperative society has the right to participate and vote in a general meeting of members remotely.

(2) A notification regarding convening of the general meeting of members shall indicate the procedures according to which and the time periods within which the members may exercise the right to vote prior to the general meeting of members or to participate and vote in the general meeting of members through electronic means.

(3) A member has the right to vote in writing (including through electronic means) prior to the general meeting of members if the following conditions are met:

1) the vote has been given in a way which allows an association or cooperative society to identify the member;

2) an association or cooperative society is informed of the vote at least one day prior to the day of the general meeting of members.

(4) A member who has voted prior to the general meeting of members may request the association or cooperative society to acknowledge the receipt of the vote. Upon receipt of the vote of the member, the association or cooperative society shall immediately send an acknowledgement to the member, but after the end of the voting it shall publish votes of all members.

(5) A board shall, upon its own initiative or upon request of the members thereof who jointly represent at least 20 per cent of the number of members of the association or cooperative society, ensure the member with the right to participate and vote in the general meeting of members, using electronic means. In such case the board shall determine the requirements for the identification of members and the procedures by which the members can exercise this right.

(6) The right of a member to participate and vote in the general meeting of members through electronic means shall not restrict the right of the member to participate and vote in the general meeting of members in person.

(7) A member who votes prior to the general meeting of members or participates and votes in the general meeting of members, using electronic means, shall be considered present at the general meeting of members and shall be included in the list of the members present.

(8) If a member participates and votes in the general meeting of members through electronic means, an association or cooperative society shall ensure recording and registration of the course of the general meeting of members on a medium and storage of the relevant materials of the meeting. Members, members of the board and council, an auditor, and competent authorities have the right to access materials of the meeting.

(9) Paragraph eight of this Section shall also be applicable to capital companies until 1 September 2020.

Section 38. Until 31 December 2020, a court may, upon receipt of a reasoned application from a debtor within the scope of the procedure for extinguishing liabilities in insolvency proceedings of a natural person, decide to postpone the time periods for payments to creditors included in the plan for extinguishing liabilities by concurrently extending the time period for the procedure for extinguishing liabilities by the relevant period.

Section 39. (1) Until 31 December 2020, in cases where an application for approval of the plan of measures of legal protection proceedings or for amending of the plan of measures of legal protection proceedings has been submitted, a time period shall be determined for the implementation of legal protection proceedings not exceeding four years from the day when a court ruling on the implementation of legal protection proceedings has entered into effect. In such a case the possibility to extend the time period for the implementation of legal protection proceedings referred to in Section 48, Paragraph two of the Insolvency Law shall not be applicable to the specific legal protection proceedings.

(2) If the time period for the implementation of legal protection proceedings is extended in accordance with Section 48, Paragraph two of the Insolvency Law and the consequences of the crisis caused by COVID-19 prevent a debtor from implementing the plan of measures of legal protection proceedings, the time period for the implementation of legal protection proceedings may, until 1 September 2020, be extended by one year, if the majority of the creditors specified in Section 42, Paragraph three of the Insolvency Law agrees to that.

Section 40. Irrespective of whether religious associations (churches) are registered with the Register of Public Benefit Organisations, donations by phone of religious associations (churches) arranged during the emergency situation may be maintained also after revocation of the emergency situation, until 31 December 2020.

Section 41. Until 30 September 2020, upon receipt of payment from an addressee of a cash-on-delivery item for the provision of courier services with a payment card or by using a mobile application, postal operators are entitled to not use electronic devices and equipment for registering tax and other payments and to issue an electronically prepared registered receipt for confirmation of a transaction in accordance with the requirements of the laws and regulations governing the procedures for using electronic devices and equipment in respect of electronically prepared registered receipts for the transactions in facilities for receipt of postal items.

Section 42. Akciju sabiedrība "Attīstības finanšu institūcija Altum" [joint stock company Development Financial Institution Altum] which is registered with the Financial and Capital Market Commission as the manager of alternative investment funds shall, upon managing the alternative investment fund established for the suppression of consequences of the spread of COVID-19, operate in accordance with the Law on Alternative Investment Funds and Their Managers, except for Section 5, Paragraph six and Section 6, Paragraphs three and six thereof. The explanation of the term "manager of an alternative investment fund" used in Section 1, Clause 3 of the Law on Alternative Investment Funds and Their Managers shall not apply to the abovementioned manager. The establishment of the alternative investment fund shall be notified in the official gazette Latvijas Vēstnesis.

Section 43. The registered manager of the alternative investment fund referred to in Section 42 of this Law shall provide the information and documents specified in the Law on Alternative Investment Funds and Their Managers to the Financial and Capital Market Commission and shall perform payments for financing the Financial and Capital Market Commission, and also shall fulfil other obligations specified in the Law on Alternative Investment Funds and Their Managers.

Section 44. The fund referred to in Section 42 of this Law shall be liquidated in accordance with the procedures laid down in the Law on Alternative Investment Funds and Their Managers.

Section 45. The limits specified in the second and third sentence of Section 12, Paragraph two, Clause 7.1 and Clause 14 of the Law on State Funded Pensions shall not be applied to the managers of funds of the State funded pension scheme in relation to the alternative investment fund referred to in Section 42 of this Law over the period from the commencement of the operation of the fund until its liquidation.

Section 46. If, within the meaning of Section 55.11, Paragraph 1.1 of the Financial Instrument Market Law and in relation to the suppression of consequences of the spread of COVID-19, a small or medium-sized merchant who is registered in Latvia issues debt securities in the amount of issue of up to two million euros and a maturity of debt securities does not exceed three years, the manager of funds of the State funded pension scheme in relation to investments in such securities is entitled to not observe the restrictions specified in Section 12, Paragraph one, Clause 3 of the Law on State Funded Pensions and the requirement of Section 12, Paragraph two, Clause 4 of the Law on State Funded Pensions that investments in debt securities of one issuer may not exceed 10 per cent of the debt securities of one issuer.

Section 47. The manager of funds of the State funded pension scheme is entitled to invest in the debt securities referred to in Section 46 of this Law in the amount of up to 100 per cent of the relevant issue until 31 December 2023.

Section 48. The total amount of investments of an investment plan in the debt securities referred to in Section 46 of this Law may not exceed one per cent of the assets of such investment plan.

Section 49. The manager of funds of the State funded pension scheme shall not apply the requirement of Section 12.1, Paragraph three of the Law on State Funded Pensions:

1) to investments in the fund referred to in Section 42 of this Law over the period from the commencement of the operation of the fund until its liquidation;

2) to investments in the debt securities referred to in Section 46 of this Law until 31 December 2023.

Section 50. The manager of funds of the State funded pension scheme shall concurrently submit the amendments made to the investment plan prospectus until 31 December 2020 in relation to the investments in the fund referred to in Section 42 of this Law or in the financial instruments referred to in Section 46 of this Law to the Financial and Capital Market Commission and the State Social Insurance Agency. The Financial and Capital Market Commission shall examine the amendments to the investment plan prospectus within five working days from the day of receipt thereof and shall send a notification to the State Social Insurance Agency on the registration of such amendments or the refusal to register them. Amendments to the investment plan prospectus shall come into effect on the day following their registration. The State Social Insurance Agency shall, within three working days from the day of receipt of the notification of the Financial and Capital Market Commission, decide whether to conclude an agreement with the manager of funds of the State funded pension scheme regarding the amendments to the contract on the management of such funds. Section 11, Paragraph 4.1 of the Law on State Funded Pensions and Paragraph 28 of Cabinet Regulation No. 272 of 27 May 2003, Regulations Regarding the Operation of the State Funded Pension Scheme, shall not be applied in relation to such amendments.

Section 51. (1) Until 9 September 2020, the owner of a vehicle or - where the vehicle has been leased - the holder of the vehicle indicated in the vehicle registration certificate has the right to remove the vehicle from the register, temporarily suspending the registration of the vehicle but without handing over the vehicle registration plates to the Road Traffic Safety Directorate, and to submit a submission by using the e-services of the Road Traffic Safety Directorate. In such case the Road Traffic Safety Directorate shall make a mark "the registration of a vehicle has been temporarily suspended without handing over the vehicle registration plates" in the Register of Vehicles maintained by it. It is prohibited to participate in road traffic with a vehicle the registration of which has been temporarily suspended without handing over the vehicle registration plates.

(2) In order to renew the registration of a vehicle, a submission shall be submitted to the Road Traffic Safety Directorate by using the e-services of the Road Traffic Safety Directorate. Following receipt of the submission, the Road Traffic Safety Directorate shall delete the mark regarding the temporary suspension of registration.

(3) The Road Traffic Safety Directorate shall ensure that the submissions referred to in this Section can be submitted remotely by using the e-services of the Road Traffic Safety Directorate.

(4) If the registration of a vehicle, without handing over the vehicle registration plates to the Road Traffic Safety Directorate, is temporarily suspended in accordance with the procedures laid down in this Section:

1) the vehicle operation tax shall be paid into the State budget for the months from the beginning of the relevant taxation period until the month (including) when the registration of the vehicle is temporarily suspended;

2) the company car tax shall be paid into the State budget for the previous taxation period if it has not been paid, and from the beginning of the current taxation period until the month (including) when the registration of the vehicle is suspended.

(5) Upon renewing the registration of a vehicle which has been temporarily suspended in accordance with the procedures specified in this Section:

1) the vehicle operation tax shall be paid into the State budget for the period from the month (including) when the registration of a vehicle is renewed until the end of the relevant calendar year;

2) the company car tax shall be paid into the State budget for the month when the registration of a vehicle is renewed.

(6) Until 9 September 2020, the owner of the vehicle or - where the vehicle has been leased - the holder of the vehicle indicated in the vehicle registration certificate (if it has concluded an appropriate insurance contract) who is a carrier that has received the special permit (licence) for performing carriage for reward is entitled to submit a written application to the insurer for an early termination of the insurance contract - standard contract or international insurance contract (the Green Card) - if the registration of a vehicle used for carriage for reward has been temporarily suspended without handing over the vehicle registration plates to the Road Traffic Safety Directorate. In such case the operation of the insurance contract is terminated on the day following the submission of a written application.

(7) Upon submitting the written application referred to in Paragraph six of this Section, one of the following justifications for terminating the insurance contract shall be indicated:

1) early termination of the insurance contract by receiving back the portion of the deposited insurance premium according to Section 10, Paragraph five, Clause 1 of the Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law;

2) early termination of the insurance contract without receiving back the portion of the deposited insurance premium for the remaining period from the day of terminating the contract until expiration of the contract. After renewal of the registration of a vehicle, if the insurer has received a written application for the conclusion of a new insurance contract for the terms of validity of an insurance contract referred to in the Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law, it shall issue a new insurance contract, and the unused insurance premium shall be included into the portion of insurance premium of such contract. In such case the new insurance contract shall enter into effect not later than by 9 September 2020.

(8) The owner of the vehicle or - where the vehicle has been leased - the holder of the vehicle indicated in the vehicle registration certificate (if it has concluded an appropriate insurance contract) who is not referred to in Paragraph six of this Section has the right to terminate an insurance contract and to receive back the unused portion of insurance premium in accordance with Section 10, Paragraphs two and three and Paragraph five, Clause 1 of the Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law, provided that the registration of a vehicle is temporarily suspended, handing over the vehicle registration plates to the Road Traffic Safety Directorate.

Section 52. (1) Until 31 December 2020, the taxpayer may pay the vehicle operation tax for the taxation period of 2020 for goods vehicles with gross weight above 3000 kilograms and their trailers and semi-trailers in the amount of 50 per cent.

(2) If the vehicle operation tax has been paid in accordance with Paragraph one of this Section, in the next calendar year the vehicle operation tax shall be paid into the State budget for the current calendar year, and for the previous calendar year in the amount of 50 per cent.

(3) If the vehicle operation tax has been paid in accordance with Paragraph one of this Section, the registration of a change in owner, the registration of a holder, and also the removal of a vehicle from the register for alienation in Latvia or for the bringing out of Latvia shall be performed by the Road Traffic Safety Directorate if the tax for the previous period is paid in full.

Section 53. Until 31 December 2020, the property of a public person may be transferred for use without compensation to the authority involved in the epidemiological safety measures for the containment of the spread and the suppression of the consequences of COVID-19 for a period not exceeding the duration of operation of this Law. The decision on the transfer of a property of a public person for use without compensation shall be taken by the institution of the public person in whose possession the relevant property is. Property of a public person shall be transferred for use without compensation by a deed of acceptance and delivery. The institution of the relevant public person has the right to control whether the property transferred for use without compensation is used in conformity with the purpose of its transfer.

Section 54. Until 31 December 2020, the movable property (personal protective equipment and disinfectants) of a public person may be transferred into the ownership of the authority involved in the epidemiological safety measures for the containment of the spread and the suppression of the consequences of COVID-19 without compensation. Permission to alienate a movable property of the State shall be given by the authority stipulated by the Cabinet, whereas the permission to alienate a movable property of a derived public person shall be given by the decision-making authority of the relevant derived public person, without clarifying the need of the public person or its institutions for such property. The movable property which is transferred according to the procedures laid down in this Section, but has not been used for the containment of the spread and the suppression of the consequences of COVID-19 during the operation of this Law, shall be given back to the relevant public person. The abovementioned solution applies also to the transfer of movable property (personal protective equipment and disinfectants) of a public person without compensation into the ownership of a religious association (church) for implementing the epidemiological safety measures.

Section 55. Property of a public person which, in accordance with Sections 53 and 54 of this Law, has been transferred for use without compensation to the authority involved in the epidemiological safety measures for the containment of the spread and the suppression of the consequences of COVID-19, or movable property (personal protective equipment and disinfectants) of a public person which has been transferred without compensation shall be regarded as a donation (gift) that is exempted from the application of the enterprise income tax or personal income tax.

Section 56. Until 31 December 2020, the State and local governments have the right to disburse financing to the associations and foundations with which a project financing contract, a participation contract, or a delegation contract has been concluded for the provision of services and implementation of other types of activities, even if they could not be provided or implemented due to the emergency situation. The State and local governments shall evaluate the impact of furlough on the financial flow of the service provider or project implementer and shall determine the extent to which payment for the period of furlough will be made.

Section 57. The State Culture Capital Foundation shall support financially the projects implemented by natural and legal persons using the State budget funds allocated thereto in order to mitigate the negative impact of the crisis caused by COVID-19 on the cultural sector.

Section 58. If the COVID-19 infection spreads or there are threats that it could spread, the Cabinet shall, in order to ensure the economic stability and upon coordination with the Budget and Finance (Taxation) Committee of the Saeima and the responsible sectoral committee of the Saeima, provide for the measures for restoring the national economy, strengthening the health sector, and improving the economic situation of the society.

Transitional Provisions

1. With the coming into force of this Law, the law On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19 (Latvijas Vēstnesis, 2020, No. 57B, 67B, 80A, 88B, 96B, 103C) is repealed.

2. The Cabinet shall, by 31 December 2020, issue the regulations provided for in Sections 2, 14, 15, and 29 of this Law. The following regulations are applicable until the day of the coming into force of the abovementioned regulations, insofar as they are not in contradiction with this Law:

1) Cabinet Regulation No. 151 of 24 March 2020, Regulations Regarding the Sectors where the Financial Situation has Significantly Deteriorated due to the Spread of COVID-19;

2) Cabinet Regulation No. 165 of 26 March 2020, Regulations Regarding the Employers Affected by the Crisis Caused by COVID-19 which are Eligible for the Allowance for Idle Time and Division of the Payment for Late Tax Payments in Instalments or Deferral Thereof for up to Three Years;

3) Cabinet Regulation No. 179 of 31 March 2020, Regulations Regarding the Allowance for Idle Time for the Self-employed Persons Affected by the Spread of COVID-19;

4) Cabinet Regulation No. 180 of 2 April 2020, Regulations Regarding the Application of Exemption From or Reduction in Lease Payment for the Property of a Public Person and of a Capital Company Controlled by a Public Person in Relation to the Spread of COVID-19;

5) Cabinet Regulation No. 236 of 23 April 2020, Regulations Regarding the Assistance Allowance Idle Time for Employed or Self-employed Persons Who have been Affected by the Spread of COVID-19;

6) Cabinet Regulation No. 278 of 12 May 2020, Regulations Regarding the Conditions and Procedures by which a State Loan is Issued to the Local Governments for Mitigating and Preventing the Impact of the Emergency Situation in Relation to the Spread of COVID-19.

3. The restriction specified in Section 3 of this Law on the receipt of the State aid and State-guaranteed support measures does not apply to the right to receive furlough allowance and the furlough assistance allowance stipulated by the Cabinet for the period referred to in Section 15, Paragraph two of this Law.

4. Section 11 of this Law shall be in force until the day when the amendments to the Handling of Alcoholic Beverages Law come into force in conformity with which the retail sale of alcoholic beverages using a distance contract is permitted but no later than until 31 December 2020.

5. Section 16 of this Law shall come into force concurrently with the Law on Administrative Liability.

6. Section 29, Paragraphs two, three, and four of this Law is repealed on 31 December 2023.

7. Section 58 of this Law is repealed on 31 December 2020.

The Law shall come into force on the day following its proclamation.

The Law has been adopted by the Saeima on 5 June 2020.

President E. Levits

Rīga, 9 June 2020


1 The Parliament of the Republic of Latvia

Translation © 2020 Valsts valodas centrs (State Language Centre)

 
Document information
Title: Covid-19 infekcijas izplatības seku pārvarēšanas likums Status:
In force
in force
Issuer: Saeima Type: law Adoption: 05.06.2020.Entry into force: 10.06.2020.Theme: COVID-19; Administratīvās atbildības ceļvedisPublication: Latvijas Vēstnesis, 110A, 09.06.2020. OP number: 2020/110A.2
Language:
LVENRU
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