Text consolidated by Valsts valodas centrs (State Language Centre) with amending regulations of: 15 August 2023 [shall come into force on 18 August 2023]; 9 July 2024 [shall come into force on 11 July 2024]; 29 October 2024 [shall come into force on 6 November 2024]; 18 March 2025 [shall come into force on 21 March 2025]. If a whole or part of a paragraph has been amended, the date of the amending regulation appears in square brackets at the end of the paragraph. If a whole paragraph or sub-paragraph has been deleted, the date of the deletion appears in square brackets beside the deleted paragraph or sub-paragraph.

Republic of Latvia Cabinet Regulation No. 10 Adopted 10 January 2023

Regulations Regarding the Implementation of Investment 2.2.1.2.i "Support for the Digitisation of Processes in Commercial Activities" of 2.2.1.r "Establishment of Full Cycle Support for Digital Transformation of Entrepreneurship with Regional Scope" of Reform and Investment Direction 2.2 "Digital Transformation and Innovations of Enterprises" under Component 2 "Digital Transformation" of the Plan for Recovery and Resilience Facility of Latvia

Issued pursuant to Section 19.³, Paragraph two
of the Law on Budget and Financial Management

[9 July 2024]

I. General Provisions

1. The Regulation prescribes the procedures for the implementation and supervision of Investment 2.2.1.2.i "Support for the Digitisation of Processes in Commercial Activities" of 2.2.1.r "Establishment of Full Cycle Support for Digital Transformation of Entrepreneurship with Regional Scope" of Reform and Investment Direction 2.2 "Digital Transformation and Innovations of Enterprises" under Component 2 "Digital Transformation" (hereinafter - the aid programme) of the Plan for Recovery and Resilience Facility of Latvia (hereinafter - the Recovery Fund) including:

1.1. the funding available for the aid programme and indicators to be achieved;

1.2. the aided activities and activities not the be aided and conditions for the eligibility of costs;

1.3. the rights and obligations of the involved authorities.

2. The following terms are used in the Regulation:

2.1. application for aid - a set of documents submitted by the final beneficiary to the Investment and Development Agency of Latvia in order to apply for the receipt of aid;

2.1.¹ opinion - a final evaluation of an expert of the European Digital Innovation Hub on the fulfilment of the requirements laid down in the digital development roadmap and digital maturity increase after implementation of an investment project;

2.2. digital development roadmap - an evaluation managed in an in-depth manner and created by an expert of the European Digital Innovation Hub within the scope of the digital maturity assessment of the investments necessary for the final beneficiary to promote digital transformation;

2.3. European Digital Innovation Hub - a candidate institution selected in the national selection round of Latvia which has submitted an application for a call for proposals of the European Commission regarding the establishment of the European Digital Innovation Hub in accordance with Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240 (hereinafter - Regulation No 2021/694) and a legal entity selected in accordance with Article 16 of Regulation No 2021/694;

2.4. final beneficiary -a micro, small, medium-sized, or large merchant (including a foreign branch of a legal entity, farm, cooperative society), association and foundation which carries out economic activity, a research and knowledge dissemination organisation, or a capital company of a public entity, which are registered in the Republic of Latvia;

2.5. investment project - an aggregate of digital transformation activities to be implemented within the scope of the aid programme by the final beneficiary for which funding has been granted according to the application for aid of the final beneficiary approved by the Investment and Development Agency of Latvia;

2.6. large merchant - a merchant which complies with Article 2(24) of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (hereinafter - Commission Regulation No 651/2014);

2.7. second digital maturity assessment - the evaluation of the current digital and innovation maturity of the final beneficiary which after receipt of aid is performed by the final beneficiary independently or in cooperation with the European Digital Innovation Hub;

2.7.¹ research and knowledge dissemination organisation - an organisation which complies with Article 2(83) of Commission Regulation No 651/2014;

2.8. project application - a set of documents consisting of a completed form, annexes thereof, and other documents which are filled out and submitted by the Investment and Development Agency of Latvia in the Cohesion Policy Funds Management Information System (hereinafter - the Management Information System) in order to receive the funding necessary for the implementation of an investment project;

2.9. initial digital maturity assessment - the evaluation of the current digital and innovation maturity of the final beneficiary which is performed by the final beneficiary independently or in cooperation with the European Digital Innovation Hub in order to determine the digitisation needs of the final beneficiary and the ability to use digital technologies which are defined in the digital development roadmap;

2.10. micro, small, and medium-sized merchant - a merchant which complies with the requirements laid down in Annex I to Commission Regulation No 651/2014;

2.11. [15 August 2023].

[15 August 2023; 9 July 2024; 18 March 2025]

3. The objective of the aid programme is to promote the digitisation of processes in commercial activities and increase productivity by investing targeted resources to create higher added value in the processes of merchant activity which would promote the competitive advantages of Latvia.

4. Connection of the aid programme and impact on the reform to be implemented - the aid programme shall implement reform 2.2.1.r "Establishment of Full Cycle Support for Digital Transformation of Entrepreneurship with Regional Scope" the objective of which is to establish a unified and coordinated aid ecosystem for promoting the digital transformation of commercial activities, thus contributing to the competitiveness of merchants.

5. The total eligible funding for the aid programme shall be EUR 36 140 000, including the funding of the Recovery Fund of EUR 36 000 000 and the State budget funding for covering the value added tax - not more than EUR 140 000.

[29 October 2024]

6. The funding referred to in Paragraph 5 of this Regulation shall be available by 30 June 2026.

7. Within the scope of the aid programme, there are the following:

7.1. objectives:

7.1.1. by 30 June 2024, the number of the units that have received aid to digitise processes of commercial activity and whose digital maturity assessment result has improved after receiving the grant and project implementation compared to the previous assessment result - 80;

7.1.2. by 30 June 2026, the number of the units that have received aid to digitise processes of commercial activity and whose digital maturity assessment result has improved after receiving the grant and project implementation compared to the previous assessment result - 200;

7.2. supervision indicators:

7.2.1. by 30 June 2023, the number of the units that have received aid to digitise processes of commercial activity and whose digital maturity assessment result has improved after receiving the grant and project implementation compared to the previous assessment result - 40;

7.2.2. by 31 December 2025, the number of the units that have received aid to digitise processes of commercial activity and whose digital maturity assessment result has improved after receiving the grant and project implementation compared to the previous assessment result - 140;

7.3. common indicators:

7.3.1. enterprises that receive aid for the development or implementation of digital products, services, and applications;

7.3.2. enterprises which are aided in order to adopt digital solutions to transform their services, products, or processes (small, including micro enterprises, medium-sized enterprises, large enterprises);

7.3.3. aided enterprises (small, including micro enterprises, medium-sized enterprises, large enterprises).

[9 July 2024]

8. The Investment and Development Agency of Latvia shall implement the aid programme and grant aid to final beneficiaries in accordance with the conditions of this Regulation.

9. The type of aid shall be the grant issued by the Investment and Development Agency of Latvia to finance an investment project of the final beneficiary.

[15 August 2023]

9.¹ The place of implementation of the aid programme shall be the Republic of Latvia.

[15 August 2023]

10. Within the scope of the aid programme, a strategically important project shall be implemented which is implemented by the Investment and Development Agency of Latvia and whose communication measures are carried out in accordance with Sub-paragraph 25.15 of this Regulation.

[15 August 2023]

11. The agreement shall be entered into between the Ministry of Economics and the Investment and Development Agency of Latvia for the management of the funding referred to in Paragraph 5 of this Regulation, the procedures for granting, use, and supervision thereof, and accounting and entry of the determined indicators in the Management Information System.

12. The Investment and Development Agency of Latvia shall, twice a year, ensure accounting and entry of the supervision indicators and objectives referred to in Paragraph 7 of this Regulation and the submission of the documents supporting the achieved supervision indicators and objectives in the Management Information System within the time limits specified in Paragraph 7 of this Regulation.

13. The agreement referred to in Paragraph 11 of this Regulation shall include the obligations of the parties in respect of:

13.1. the activities performed by the Ministry of Economics and the Investment and Development Agency of Latvia to prevent, during the implementation of the aid programme, the principles of corruption, fraud, and conflict of interest in accordance with Article 61 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (hereinafter - Regulation No 2024/2509), and also the risk of double funding at the level of the final beneficiary;

13.2. checks of the documentation supporting the objectives, including data reliability inspections of the information provided by the final beneficiaries of the Investment and Development Agency of Latvia.

[29 October 2024]

14. The Ministry of Economics has the right to unilaterally withdraw from the agreement in any of the following cases:

14.1. the Investment and Development Agency of Latvia does not fulfil the agreement, including other circumstances have set in which negatively affect or may affect the achievement of indicators of the aid programme or the determined indicators;

14.2. the Investment and Development Agency of Latvia has intentionally provided false information during the implementation of the aid programme;

14.3. failure to comply with the principles of corruption, fraud, conflict of interest in accordance with Article 61 of Regulation No 2024/2509 and violations of double funding have been detected;

14.4. in other cases provided for in the agreement.

[15 August 2023; 29 October 2024]

II. Aided Activities and Activities Not to be Aided

15. The Investment and Development Agency of Latvia shall provide aid for the implementation of an investment project of the final beneficiary.

16. The final beneficiary may make investments for the improvement of the following processes of commercial activity:

16.1. administrative processes - finance and accounting, administration, document management, project management, cooperation, system compatibility;

16.2. personnel management processes - human resource management, working time accounts, work delegation, personnel involvement, evaluation and motivation;

16.3. sales processes - customer attraction and transaction management automation, sales and transaction tracking, e-commerce, digital marketing, digital solutions for retail, customer relationship management - CRM;

16.4. resource management processes - resource management (enterprise resource planning - ERP, warehouse management systems), energy resource management, more efficient use;

16.5. data management processes - data security, data storage, communication infrastructure;

16.6. transport and logistics processes - internet of things, smart mobility solutions, perception systems, traffic monitoring;

16.7. production and quality control processes - management and automation of production and business processes, quality control systems, data synchronisation, data analytics;

16.8. operational management processes - business management, business analytics, big data analytics, solutions for management decision-making, data automation, synchronisation;

16.9. strategic management - digitisation (process and product) and innovation development strategy;

16.9.¹ development of new digital solutions;

16.10. making other improvements related to information and communication technology products, technologies, security, or processes.

[9 July 2024]

17. Activities not to be aided shall be:

17.1. purchase of standard office equipment and computer equipment necessary for the provision of basic internal functions and the set of processes that the final beneficiary performs regardless of the scope of activity;

17.2. support for the current software and information systems, excluding security tests;

17.3. supplementation of the current programmes with a new functionality for users;

17.4. preparation of the user documentation;

17.5. investments already made in internal functions and processes;

17.6. purchase of immovable property;

17.7. adaptation of the current software, except for the implementation of security enhancements and synchronisation of the new software for the implementation of the objectives of the aid programme in commercial activity;

17.8. activities that have already been completed at the time when the agreement of the Investment and Development Agency of Latvia with the Ministry of Economics is entered into.

[18 March 2025]

III. Eligible Costs and Costs Not Covered from the Funds of the Recovery Fund

18. Within the scope of the aid programme, the following cost items shall be eligible:

18.1. for the Investment and Development Agency of Latvia:

18.1.1. the remuneration costs of the personnel, including work remuneration, mandatory State social insurance contributions, benefits, and compensations;

18.1.2. the cost of providing a workplace;

18.1.3. the costs of informative measures;

18.1.4. the costs related to the verification of the data of final beneficiaries (database subscription fee for the duration of the aid programme);

18.1.5. the costs of the development, iterative development and debugging of the necessary functionality for the information system the State Platform for Business Development (www.business.gov.lv), insofar as it refers to the aid programme;

18.2. for the final beneficiary:

18.2.1. the costs of purchase, development, prototyping, installation, and customisation of ready-made solutions, hardware, sensors, equipment, software, and information technology infrastructure, including costs for the purchase of a license;

18.2.2. the consulting costs for the final beneficiary which are related to the costs referred to in Sub-paragraph 18.2.1 of this Regulation in the field of digitisation of strategic management of commercial activities by taking into account the provisions referred to in Sub-paragraphs 19 and 41 of this Regulation.

[15 August 2023; 9 July 2024]

19. The costs of consultations referred to in Sub-paragraph 18.2.2 of this Regulation shall not be a permanent or periodic activity, they shall not be related to the usual operating costs of the merchant, for example, current tax consultancy services, regular legal services, or advertising services in accordance with Article 18(4) of Commission Regulation No 651/2014.

19.¹ The costs of purchase of a licence referred to in Sub-paragraph 18.2.1 of this Regulation shall be applied not longer than by 30 June 2026. The costs of purchase of a license from the Recovery Fund can be eligible if the license refers to the implementation of the specific technology or software within the scope of the investment. The expiry term of the license may be longer than 30 June 2026.

[15 August 2023]

19.² The final beneficiary may purchase the services referred to in Sub-paragraph 18.2 of this Regulation from a foreign supplier.

[15 August 2023]

19.³ The costs of prototyping referred to in Sub-paragraph 18.2.1 of this Regulation may be covered for the final beneficiary in accordance with Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (Official Journal of the European Union, 15.12.2023) (hereinafter - Commission Regulation No 2023/2831).

[9 July 2024]

20. The costs referred to in Sub-paragraph 18.1 of this Regulation shall be eligible for the Investment and Development Agency of Latvia from 1 August 2022.

21. The final beneficiary may start the activities to be aided within the scope of the investment project only after submitting the application for aid to the Investment and Development Agency of Latvia. If the application for aid is not approved, the final beneficiary shall cover all the costs of the investment project from its own funds. If the aid is provided in accordance with the provisions of Articles 14 and 18 of Commission Regulation No 651/2014, it may be granted if the provision of the stimulating effect is complied with in accordance with Article 6 of Commission Regulation No 651/2014, including if the application for aid contains at least the information laid down in Article 6(2) of Commission Regulation No 651/2014.

[9 July 2024]

21.¹ The final beneficiary which is applying for the receipt of aid in accordance with Commission Regulation No 2023/2831 or Commission Regulation (EU) No 1408/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agriculture sector (Official Journal of the European Union, 24.12.2013, L 352/9) (hereinafter - Commission Regulation No 1408/2013) shall, before submitting the project application to the Investment and Development Agency of Latvia, make sure of the balance of the de minimis amount available for it in accordance with Sub-paragraphs 81.1 and 81.1.¹ of this Regulation.

[9 July 2024]

22. The following costs shall not be covered from the funds of the Recovery Fund:

22.1. the value added tax;

22.2. the costs related to the preparation of the project application which also include the costs of consultation services;

22.3. the costs of loading, unloading, lifting, transportation, and storage of cargo.

[9 July 2024]

23. The value added tax shall be covered from the State budget funds for the eligible costs of the Investment and Development Agency of Latvia referred to in Sub-paragraphs 18.1.2, 18.1.3, 18.1.4, and 18.1.5 of this Regulation. The value added tax shall be covered by the Investment and Development Agency of Latvia from the State budget funds only in the event if the Investment and Development Agency of Latvia cannot recover the value added tax in accordance with the procedures laid down in laws and regulations.

IV. Provisions for the Implementation and Supervision

24. Obligations of the Ministry of Economics:

24.1. to send an invitation to the Investment and Development Agency of Latvia to submit a project application within 15 working days after receipt of the invitation;

24.2. within 15 working days after the submission of the project application, to evaluate it in accordance with the requirements of this Regulation, and also to evaluate whether the criteria laid down in Article 138 of Regulation No 2024/2509 are not applicable to the Investment and Development Agency of Latvia, and, where necessary, to request the Investment and Development Agency of Latvia to supplement and clarify the information indicated in the project application form, but not more than twice, also determining the time limits for the submission of clarifications and supplements. If the Investment and Development Agency of Latvia has submitted the project application in accordance with the requirements of this Regulation and does not comply with the exclusion criteria, and has clarified, where necessary, the project application in accordance with the requirements specified by the Ministry of Economics, when fulfilling the conditions referred to in this Sub-paragraph, the Ministry of Economics shall take the decision to approve the project application and enter into the agreement for the management of funding of the Recovery Fund, the procedures for granting, use, and supervision thereof;

24.3. to take the decision on the conformity of the costs administered by the Investment and Development Agency of Latvia with this Regulation and the requirements laid down in the agreement;

24.4. to verify the fulfilment of the objective to be achieved and indicators according to the information submitted by the Investment and Development Agency of Latvia in the Management Information System;

24.5. in accordance with the laws and regulations regarding the procedures for the implementation and supervision of the Plan for the European Recovery and Resilience Facility, to provide information in the Management Information System in a timely manner on the progress of the implementation of the aid programme for the preparation of the half-yearly report on the progress of the implementation of the Recovery Fund plan and the request for the payment taking into account the information entered by the Investment and Development Agency of Latvia in the Management Information System;

24.6. to provide information to the public on the implementation progress and results of the aid programme;

24.7. to ensure checks of the principles of prevention of corruption, fraud, conflict of interest in accordance with Article 61 of Regulation No 2024/2509 and also a random verification of the documentation supporting the prevention of double funding risk and achieved objectives, including data reliability checks.

[29 October 2024]

25. Obligations of the Investment and Development Agency of Latvia:

25.1. within 15 working days from the moment of receiving the invitation, to submit the project application in the Management Information System;

25.2. to ensure the implementation of the aid programme, the allocation and supervision of the aid, including the use of the funding granted to the final beneficiaries, in accordance with the provisions of this Regulation and the agreement entered into by the Investment and Development Agency of Latvia with the Ministry of Economics;

25.3. after entering into the agreement with the Ministry of Economics for the data exchange with the Ministry of Economics, to use the data entry forms in the Management Information System according to the type of document to be submitted;

25.4. after entering into the agreement with the Ministry of Economics, to submit the schedule for the submission of progress reports in the Management Information System by intending to submit the progress report not more than twice a year, and the procurement plan for the planned procurements in which it is intended to apply the public procurement regulation;

25.5. to submit the final progress report in the Management Information System by 30 June 2026;

25.6. to develop the evaluation criteria for the applications submitted by the final beneficiaries, the internal control system, and the procedures by which the grant is issued to the final beneficiary and the supervision of the use of the grant is ensured, and, within a month after entry into effect of the provisions of the aid programme, agree thereupon with the Ministry of Economics;

25.7. to ensure the evaluation of the applications submitted by the final beneficiaries in conformity with the evaluation criteria, the requirements for granting aid for commercial activity, and the provisions of this Regulation ensuring compliance with the principles of mutual supervision in the decision-making process, i.e. by evaluating the applications submitted by the final beneficiaries and the information attached thereto, providing aid to the final beneficiaries and accounting the aid granted;

25.8. to enter into contracts with final beneficiaries, including therein the obligation for the final beneficiary to perform the second digital maturity assessment. The Investment and Development Agency of Latvia may request the European Digital Innovation Hub to issue an opinion if it is necessary to make sure of the increase in the digital maturity of the digital transformation after implementation of an investment project;

25.9. when providing aid to final beneficiaries, to ensure the application of the principle "do no significant harm" in accordance with Article 2(6) and Article 5(2) of Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (hereinafter - Commission Regulation No 2021/241). In the contract of the Investment and Development Agency of Latvia with the final beneficiary, to include the information on no aid to the initiatives causing significant harm;

25.9.¹ to ensure a mutual exchange of information with the European Digital Innovation Hub on the compliance of the final beneficiary with the "do no significant harm" principle;

25.10. to establish an advisory board and ensure the conduct of meetings once every six months;

25.11. to carry out random checks at the level of final beneficiaries and ensure compliance with the principles of prevention of corruption, fraud, conflict of interest in accordance with Article 61 of Regulation No 2024/2509 and also the verification of the documentation supporting the prevention of double funding risk and the achieved goals, including data reliability checks;

25.12. twice a year, to submit in the Management Information System the contracts entered into between the Investment and Development Agency of Latvia and the final beneficiaries and also the second digital maturity assessments of the final beneficiaries which confirm process improvements;

25.13. twice a year, to submit in the Management Information System the list of contracts referred to in Sub-paragraph 25.12 of this Regulation;

25.14. to publish information on its website in accordance with Article 9(1) and (4) of Commission Regulation No 651/2014;

25.15. to ensure information and publicity measures in accordance with Article 34 of Commission Regulation No 2021/241 and Article 10 of the Recovery and Resilience Facility Financing Agreement between the Commission and the Republic of Latvia, ensuring at least one informative measure for the implementation of Paragraph 10 of this Regulation;

25.16. to publish the information on the submission of the applications for aid in the information system the State Platform for Business Development (www.business.gov.lv);

25.17. to ensure granting the aid for commercial activity to the final beneficiaries;

25.18. to ensure a separate disbursement, accounting, and separation of the costs specified in Sub-paragraph 18.1 of this Regulation, including the costs of value added tax;

25.19. prior to receipt of the funding in the amount the costs of value added tax, to provide a certification to the Ministry of Economics that the abovementioned amounts are not and will not be recovered from the State budget in the form of input tax.

[15 August 2023; 9 July 2024; 29 October 2024]

25.¹ If, during the implementation of the aid programme, there have been changes in the implementation of the investment or in the related laws and regulations, the Investment and Development Agency of Latvia shall, on its own initiative or upon request of the Ministry of Economics, clarify the documentation referred to in Sub-paragraph 25.6 of this Regulation and submit it to the Ministry of Economics for approval, while ensuring equality in the evaluation process of project applications.

[15 August 2023]

26. In order to ensure the compliance of the aided activities with this Regulation, the Investment and Development Agency of Latvia has the right to request the necessary information from the European Digital Innovation Hub.

27. Within the scope of the financing of the Recovery Fund referred to in Paragraph 5 of this Regulation, the aid up to EUR 9999 shall be available for the final beneficiaries for the aided activities specified in this Regulation within the scope of one investment project.

[9 July 2024]

28. [9 July 2024]

29. [9 July 2024]

30. Within the scope of the financing of the Recovery Fund referred to in Paragraph 5 of this Regulation, the aid up to EUR 100 000 shall be available for the final beneficiaries for the aided activities specified in this Regulation within the scope of one investment project.

[9 July 2024]

31. The final beneficiary may submit several applications to receive aid in accordance with Paragraphs 27 and 30 of this Regulation.

[9 July 2024]

32. The funding of the Recovery Fund for the Investment and Development Agency of Latvia referred to in Paragraph 5 of this Regulation shall not exceed EUR 2 500 000.

33. [9 July 2024]

34. Within the meaning of this Regulation, the Investment and Development Agency of Latvia may grant the aid to the final beneficiary if:

34.1. it complies with one of the following:

34.1.1. it is registered in the Enterprise Register or the Commercial Register of the Republic of Latvia;

34.1.2. it is registered in the Register of Associations and Foundations of the Enterprise Register of the Republic of Latvia;

34.1.3. it is registered in the list of public entities and institutions;

34.1.4. it is registered in the Register of Scientific Institutions of the Ministry of Education and Science;

34.2. it corresponds to the status of a micro, small, or medium-sized merchant in accordance with Sub-paragraph 2.10 of this Regulation or the status of a large merchant in accordance with Sub-paragraph 2.6 of this Regulation;

34.3. according to the information available in the public database of tax (fee) debtors administered by the State Revenue Service, it does not have any debts of taxes or fees, including the debt of mandatory State social insurance contributions the total amount of which exceeds EUR 150, except for tax payments for which the payment term has been extended, divided in instalments, deferred, or divided in instalments repeatedly in accordance with Section 24, Paragraphs one, 1.³, and 1.⁷ of the law On Taxes and Fees, or in respect of which a settlement agreement is in force in accordance with Section 41 of the law On Taxes and Fees;

34.4. the following exclusion criteria are not applicable to the final beneficiary, except for Sub-paragraph 34.1.3 of this Regulation:

34.4.1. the final beneficiary or a person who is a member of the executive board or supervisory board or a general representative of the final beneficiary, or a person who is authorised to represent the final beneficiary in activities related to the branch, has been found guilty of any of the following criminal offences by such prosecutor's penal order or a court judgment that has entered into effect and has become non-contestable and non-appealable:

34.4.1.1. the establishment, management of a criminal organisation, the involvement therein or an organised group in its composition or in another criminal formation or the participation in criminal offences committed by such organisation;

34.4.1.2. accepting bribes, bribery, misappropriation of bribe, intermediation in bribery, unauthorised accepting of benefits or commercial bribery, unlawful requesting, accepting, or giving of benefits, trading with influence;

34.4.1.3. fraud, misappropriation, or money laundering;

34.4.1.4. evasion of tax payments and payments equivalent thereto;

34.4.1.5. terrorism, financing of terrorism, establishment or organising of a terrorist group, travelling for terrorism purposes, justification of terrorism, incitement to terrorism, threats of terrorism, or recruitment, training of a person, and training for terrorism;

34.4.1.6. trafficking in human beings;

34.4.1.7. movement of such goods and substances the circulation of which is prohibited or specially regulated across the State border of the Republic of Latvia;

34.4.1.8. unlawful participation in property transactions;

34.4.1.9. a recovery order referred to in Article 1(4)(a) of Commission Regulation No 651/2014 applies to it if the aid is granted in accordance with Commission Regulation No 651/2014. This provision shall be evaluated at the level of the enterprise group;

34.4.2. the final beneficiary is subject to such a decision on penalty of the competent authority in the relevant field or a court judgment that has entered into effect and has become non-contestable and non-appealable, it has been found guilty and punished for a violation manifesting as:

34.4.2.1. employment of one or several persons if they do not have the necessary work permit or if they are not entitled to stay in a European Union Member State;

34.4.2.2. employment of a person without a written employment contract;

34.4.3. by such a decision of a competent authority in the relevant field or a court judgment which has entered into effect and has become non-contestable and non-appealable, the final beneficiary has been found guilty of violation of competition law manifested as a vertical agreement aimed at restricting the opportunity of a purchaser to determine the resale price, or horizontal cartel agreement, except for the case when the relevant authority, upon determining violation of competition law, has released the final beneficiary from a fine or has reduced the fine for cooperation within the scope of the leniency programme;

34.4.5. insolvency proceedings have been declared, a case of legal protection proceedings has been initiated, or legal protection proceedings are being implemented in respect of the final beneficiary, its economic activity has been suspended, or discontinued, or it is being liquidated. The verification of non-compliance of the final beneficiary with Article 2(18) of Commission Regulation No 651/2014 shall be performed in respect of the final beneficiary that is applying for aid in accordance with Commission Regulation No 651/2014;

34.4.6. by such a decision on penalty of a competent authority in the relevant field or a court judgment which has entered into effect and has become non-appealable, the final beneficiary has been found guilty and punished for the violation manifested as failure to submit an informative declaration on employees which is to be submitted, within the term specified in the laws and regulations, in respect of the persons who commence work.

[15 August 2023; 9 July 2024; 29 October 2024; 18 March 2025]

34.¹ The verification of compliance with the exclusion criteria referred to in Sub-paragraph 34.4 of this Regulation shall also be performed in respect of the Investment and Development Agency of Latvia in the selection process of a project application.

[15 August 2023]

34.² The Investment and Development Agency of Latvia shall not reject the application for aid of the final beneficiary if, from the date when the following has become non-appealable:

34.² 1. the court judgment, the prosecutor's penal order, or the decision taken by another authority in relation to the violations referred to in Sub-paragraph 34.4.1 or 34.4.2.1 of this Regulation, three years have passed until the date of submission of the application for aid;

34.² 2. the court judgment or the decision taken by another authority in relation to the violations referred to in Sub-paragraphs 34.4.2.2 or 34.4.3 of this Regulation, 12 months have passed until the date of submission of the application for aid.

[9 July 2024]

35. If the aid is provided in accordance with Commission Regulation No 651/2014, for the purpose of receiving aid the final beneficiary shall submit the following to the Investment and Development Agency of Latvia:

35.1. filled out application form developed by the Investment and Development Agency of Latvia for receipt of aid;

35.2. declaration on conformity with the status of micro, small, or medium-sized merchant;

35.3. initial digital maturity assessment;

35.4. a digital development roadmap;

35.5. information on the aid planned and granted within the scope of the same investment project, including on the same eligible costs by indicating the date of granting the aid, the provider of aid, the aid measure, and the planned or granted amount of aid, and the aid intensity;

35.6. a confirmation that it has not performed and will not perform the activities specified in Article 14(16) of Commission Regulation No 651/2014 which are defined in Article 2(61a) of Commission Regulation No 651/2014;

35.7. a certification that it will submit reports to the Central Statistical Bureau on innovation costs within the time limits and in the form specified by the Central Statistical Bureau during the period of implementation of the activities to be aided and referred to in Paragraph 16 of this Regulation and for three years after implementation of such activities.

36. If the aid is provided in accordance with Commission Regulation No 2023/2831 or Commission Regulation No 1408/2013, for the purpose of receiving aid the final beneficiary shall submit the following to the Investment and Development Agency of Latvia:

36.1. filled out application form developed by the Investment and Development Agency of Latvia for receipt of aid;

36.2. the list of members and founders' decision (applicable to associations and foundations);

36.3. the printout form prepared in the de minimis aid accounting system or indicate the identification number of the applicant form created and approved in the de minimis aid accounting system;

36.4. [18 March 2025];

36.5. initial digital maturity assessment;

36.6. a digital development roadmap;

36.7. a certification that it will submit reports to the Central Statistical Bureau on innovation costs within the time limits and in the form specified by the Central Statistical Bureau during the period of implementation of the activities to be aided and referred to in Paragraph 16 of this Regulation and for three years after implementation of such activities.

[9 July 2024]

37. The final beneficiary shall submit the documents referred to in Paragraphs 35 and 36 of this Regulation using the information system the State Platform for Business Development (www.business.gov.lv).

38. For the implementation of the activities referred to in Paragraph 16 of this Regulation, the Investment and Development Agency of Latvia shall issue a grant to the final beneficiary for the implementation of an investment project.

[15 August 2023]

38.¹ The date when the Investment and Development Agency of Latvia has taken the decision to grant the aid for commercial activity shall be regarded as the date of granting the aid for commercial activity to the final beneficiary.

[9 July 2024]

38.² The final beneficiary shall indicate in the project application according to which of the Regulations referred to in this Regulation, i.e. Commission Regulation No 651/2014 or Commission Regulation No 2023/2831, or Commission Regulation No 1408/2013, it wishes to receive aid. Where necessary, before submitting the project application, the final beneficiary shall consult with the Investment and Development Agency of Latvia.

[9 July 2024]

38.³ The Investment and Development Agency of Latvia may take the decision to grant the aid for commercial activity to the final beneficiary:

38.³ 1. within the time limit specified in Article 58(4) and Article 59 of Commission Regulation No 651/2014 if the aid is provided in accordance with Commission Regulation No 651/2014;

38.³ 2. not later than by 31 March 2026 if the aid is provided in accordance with Commission Regulation No 2023/2831;

38.³ 3. by 31 March 2026 if the aid is provided in accordance with Commission Regulation No 1408/2013.

[9 July 2024]

39. The final beneficiary shall purchase goods and services in accordance with the laws and regulations in the field of public procurements, implementing an open, transparent, non-discriminating procedure not restrictive of competition.

40. The final beneficiary referred to in Paragraph 27 of this Regulation may use the grant issued by the Investment and Development Agency of Latvia by choosing a service provider for the implementation of an investment project from the catalogue of standardised digital transformation solutions available in Latvia created by the European Digital Innovation Hub. When choosing a service provider from the catalogue, the final beneficiary shall, at the same time, conform to the requirements of the laws and regulations in the field of public procurements.

[9 July 2024]

41. The part of the eligible costs that the final beneficiary may use to cover the costs of consultations referred to in Sub-paragraph 18.2.2 of this Regulation shall proportionally not exceed the part of eligible costs which is intended for covering the eligible costs referred to in Sub-paragraph 18.2.1 of this Regulation.

[9 July 2024]

42. [9 July 2024]

43. The final beneficiary shall submit the investment supporting documentation to the Investment and Development Agency of Latvia together with the second digital maturity assessment and, where applicable, an opinion. The Investment and Development Agency of Latvia shall compare the initial digital maturity assessment and the second digital maturity assessment. As a result of the comparison, there should be an improvement in the overall digitisation level. Costs shall be eligible for the final beneficiary only after verification of documentation supporting the costs, the second digital maturity assessment, and, where applicable, the opinion performed by the Investment and Development Agency of Latvia. The second digital maturity assessment and, where applicable, the opinion shall be submitted to the Investment and Development Agency of Latvia after the implementation of an investment project.

[18 March 2025]

43.¹ The moment when the solution purchased by the final beneficiary is introduced in commercial activity or installed at the place of project implementation shall be regarded as the moment of implementation of an investment project of the final beneficiary. If in the investment project it is planned to purchase equipment for the use of software, the installation thereof without transfer of ownership outside the place of implementation of the project shall be aided.

[9 July 2024]

44. The final beneficiary has the right to repeat the digital maturity assessment if the second digital maturity assessment indicates no improvement in the overall level of digitisation. After both the second and repeated digital maturity assessments, the European Digital Innovation Hub shall evaluate the results. If the results of the evaluation performed by the European Digital Innovation Hub indicate that there are improvements in the overall level of digitisation, the European Digital Innovation Hub shall issue a positive opinion. If the evaluation results do not indicate improvements in the overall level of digitisation, the European Digital Innovation Hub shall issue a negative opinion and the costs for the final beneficiary from the financing of the Recovery Fund shall not be eligible.

45. The final beneficiary shall ensure information and publicity measures in accordance with Article 34 of Commission Regulation No 2021/241 and Article 10 of the Recovery and Resilience Facility Financing Agreement between the Commission and the Republic of Latvia or in accordance with the requirements laid down in the agreement between the final beneficiary and the Investment and Development Agency of Latvia.

46. The advisory board referred to in Sub-paragraph 25.10 of this Regulation shall be composed of the representatives from:

46.1. the association Digital Accelerator of Latvia;

46.2. the association Latvian IT Cluster;

46.3. the Investment and Development Agency of Latvia;

46.4. the Ministry of Economics.

47. The Investment and Development Agency of Latvia has the right to invite other representatives from scientific institutions, industry associations and foundations to the advisory board.

48. Obligations of the advisory board:

48.1. to evaluate the information on the result of the aid programme to be indicated in the six-month progress reports;

48.2. to identify and evaluate the possible risks that affect the achievement of the desired results and objectives of the aid programme.

49. The Investment and Development Agency of Latvia has the right to request and receive direct access to data in State information systems, databases, and registers free of charge to the extent necessary for the implementation of the aid programme and the provision of support to the final beneficiaries in accordance with this Regulation.

50. The progress of the implementation of the aid programme and the availability of data and their processing shall be ensured in accordance with the laws and regulations regarding the procedures for the implementation and supervision of the Plan for the European Recovery and Resilience Facility.

51. [9 July 2024]

52. The maximum permissible aid intensity for the Investment and Development Agency of Latvia shall be 100 % of the total eligible costs of the aid programme.

53. The Ministry of Economics shall take the decision on the conformity of the costs of the Investment and Development Agency of Latvia with this Regulation and the requirements laid down in the agreement.

V. Conditions Related to Receiving Aid for Commercial Activity if the Aid for Commercial Activity is Granted in Accordance with Commission Regulation No 651/2014

54. The aid for the final beneficiaries referred to in Paragraph 30 of this Regulations shall be granted in accordance with Article 14 of Commission Regulation No 651/2014 in respect of the costs referred to in Sub-paragraphs 18.2.1 of this Regulation, but for the final beneficiaries referred to in Paragraph 30 of this Regulation who do not correspond to the status of a large merchant in accordance with Article 18 of Commission Regulation No 651/2014 in respect of the the costs referred to in Sub-paragraph 18.2.2 of this Regulation.

[15 August 2023]

55. [15 August 2023]

56. The final beneficiary shall submit a certification to the Investment and Development Agency of Latvia of compliance with the condition contained in Article 18(c) of Commission Regulation No 651/2014.

57. The Investment and Development Agency of Latvia shall ensure that the aid to be granted by Commission Regulation No 651/2014 does not exceed the limit values laid down in Article 4(1)(a) and (d) of Commission Regulation No 651/2014.

58. The eligible costs of the final beneficiary shall be the costs for the investments in tangible assets in accordance with Article 2(29) of Commission Regulation No 651/2014 and intangible assets in accordance with Article 2(30) of Commission Regulation No 651/2014 if the aid is granted in accordance with Commission Regulation No 651/2014 in compliance with the following conditions:

58.1. the eligible costs shall be the initial investments in accordance with Article 2(49)(a) of Commission Regulation No 651/2014;

58.2. the initial investments shall remain in the Republic of Latvia in the relevant level 3 region of the Nomenclature of Territorial Units for Statistics (hereinafter - the NUTS) where the aided project is implemented for at least five years for large merchants or three years for micro, small, or medium-sized merchants in compliance with Article 14(5) of Commission Regulation No 651/2014;

58.3. the assets are new, except for the case where the assets are purchased by a micro, small, or medium-sized merchant in compliance with the conditions referred to in Article 14(6) of Commission Regulation No 651/2014 complying with the restrictions specified in the second subparagraph of Article 14(6) of Commission Regulation No 651/2014;

58.4. the assets related to the modernisation process conform to the requirements specified in Article 14(7) of Commission Regulation No 651/2014;

58.5. the intangible assets comply with the conditions referred to in Article 14(8) of Commission Regulation No 651/2014 in compliance with the restriction for large merchants specified in the second subparagraph of Article 14(8) of Commission Regulation No 651/2014;

58.6. after implementation of the investment project, the investments made shall be included in the financial statements in the long-term investment section.

59. In accordance with Article 14(13) of Commission Regulation No 651/2014, any initial investment started by the same beneficiary (at group level) within three years from the date when works on another aided investment in the same level 3 region of the NUTS were started shall be considered to be the part of a single investment project. If such single investment project is a large investment project according to Article 2(52) of Commission Regulation No 651/2014, the total amount of aid for a single investment project shall not exceed the adjusted amount of aid determined for large investment projects.

60. In the cases referred to in Paragraph 54 of this Regulation, the aid shall not be granted to the following sectors and activities provided for in the investment project:

60.1. the sectors and activities not to be aided and specified in Article 1(2)(c) and (d) and Article 13(a), (b), (c), and (d) of Commission Regulation No 651/2014 if the final beneficiary is applying for aid in accordance with Commission Regulation No 651/2014;

60.2. trade in weapons and ammunition (Nomenclature of Economic Activities in the European Communities Revision 2, Update 1 (hereinafter - NACE Rev. 2.1), Class 47.63 "Retail sale of sporting equipment");

60.3. gambling and betting activities (Division 92 "Gambling and betting activities" of NACE Rev. 2);

60.4. manufacture and sale of tobacco products (Division 12 "Manufacture of tobacco products", Class 46.35 "Wholesale of tobacco products", Class 47.26 "Retail sale of tobacco products" and Class 47.92 "Intermediation service activities for specialised retail sale" of NACE Rev. 2.1);

60.5. the sectors and activities specified in Article 1(3) of Commission Regulation No 651/2014 and not to be aided if the final beneficiary is applying for aid in accordance with Commission Regulation No 651/2014;

60.6. sale of alcohol (Class 46.34 "Wholesale of beverages", Class 47.25 "Retail sale of beverages", and Class 47.92 "Intermediation service activities for specialised retail sale" of NACE Rev. 2.1);

60.7. [18 March 2025];

60.8. waste treatment and disposal (Group 38.3 "Waste disposal without recovery" of NACE Rev. 2.1).

[9 July 2024; 18 March 2025]

60.¹ The project application shall be regarded as non-compliant with the "do no significant harm" principle referred to in Sub-paragraph 25.9 of this Regulation if the following activities are provided for in the project application:

60.¹ 1. activities related to fossil fuel, including its derived use, except for the projects in the production of electricity or heat, and also related transmission and distribution infrastructure using natural gas in conformity with Annex III to the Commission Notice Technical guidance on the application of "do no significant harm" under the Recovery and Resilience Facility Regulation (Official Journal of the European Union, 18.2.2021, C 58/1);

60.¹ 2. activities related to landfills of waste, waste incineration facilities (except for the activities intended for non-recyclable hazardous waste treatment facilities and activities intended for existing facilities to increase energy efficiency, capture exhaust gases for storage or use, or recover materials from ash resulting from the operation of incineration facilities, provided that such activities do not increase the waste processing capacity of the facilities or extend the working life of the facilities, for which evidence is provided at the level of the facilities at the end of the investment project) and mechanical and biological treatment facilities (except for the activities performed on existing facilities to increase energy efficiency or modernise separated waste processing operations, converting waste into compost biowaste, and anaerobic digestion of biowaste, provided that such activities do not increase the waste processing capacity of the facilities or extend the service life of the facilities, for which evidence is provided at the level of the facilities at the end of the investment project);

60.¹ 3. activities where long-term disposal of waste may cause harm to the environment;

60.¹ 4. activities detrimental to the good condition of water bodies or the good ecological potential thereof, including surface water and groundwater, or the good environmental condition of maritime waters;

60.¹ 5. activities detrimental to the circular economy, including the waste prevention and recycling, causing a significant lack of effectiveness in the use of materials or in such direct or indirect use of natural resources as non-renewable energy resources, raw materials, water and land in one or more stages of the product cycle, including in terms of product durability, repairability, upgradeability, reusability, or recyclability;

60.¹ 6. activities detrimental to the prevention and control of environmental pollution;

60.¹ 7. activities detrimental to the protection and restoration of biological diversity and ecosystems, including causing harm to the good condition and resilience of ecosystems or causes harm to the conservation status of habitats and species, including habitats and species of European Union importance;

60.¹ 8. activities within the scope of the European Union Emissions Trading System which achieve the projected level of greenhouse gas emissions that is not lower than the relevant benchmarks.

[15 August 2023; 9 July 2024]

61. If the final beneficiary simultaneously operates in one or several sectors not to be aided and referred to Article 1(3)(a), (b), and (c) of Commission Regulation No 651/2014 and the sectors not to be aided and referred to in Sub-paragraphs 60.1, 60.2, 60.3, 60.4, 60.5, 60.6, and 60.8 of this Regulation and the activities referred to in Paragraph 60.1 of this Regulation, the aid may be granted only if the final beneficiary ensures the separation of the activities of these sectors or accounting thereof from the financial flow of other sectors of activity so that activities in the excluded sectors do not benefit from aid in accordance with Article 1(3) of Commission Regulation No 651/2014.

[18 March 2025]

62. [9 July 2024]

63. The maximum permissible aid intensity from the eligible costs of the investment project if the aid is provided in accordance with Article 14 of Commission Regulation No 651/2014 shall be as follows:

63.1. in level 3 region of the NUTS- 3 of Rīga (according to the data of 2021) - 30 % (for large merchants), 40 % (for medium-sized merchants), or 50 % (for micro, small merchants);

63.2. in level 3 region of the NUTS- 3 of Kurzeme, Zemgale, Vidzeme (according to the data of 2021) - 40 % (to large merchants), 50 % (to medium-sized merchants) or 60 % (to micro, small merchants), except for Limbaži municipality, Ogre municipality, Saulkrasti municipality, and Tukums municipality;

63.3. for administrative territories in level 3 region of the NUTS- 3 of Pierīga (according to the data of 2021), including in Limbaži municipality, Ogre municipality, Saulkrasti municipality, and Tukums municipality - 30 % (for large merchants), 40 % (for medium-sized merchants), or 50 % (for micro, small merchants).

[15 August 2023]

63.¹ If the initial investments planned in the project are made in Latvia within two or more level 3 regions of the NUTS of different aid intensity (according to the data of 2021), one of the following aid intensity shall be applied:

63.¹ 1. the aid intensity of the relevant level 3 region of the NUTS (according to the data of 2021) shall be applied to the initial investment costs within the jurisdiction of each level 3 region of the NUTS (according to the data of 2021);

63.¹ 2. if the merchant benefits in one or several level 3 regions of the NUTS of different aid intensity (according to the data of 2021) from the initial investments regardless of their location, the lowest aid intensity among level 3 regions of the NUTS of aid intensity (according to the data of 2021) in which the merchant benefits from the project implementation shall be applied to the whole project.

[15 August 2023]

64. The final beneficiary shall, in conformity with Article 14(14) of Commission Regulation No 651/2014, ensure co-funding in the amount of at least 25 % of the eligible costs which are aided by Article 14 of Commission Regulation No 651/2014, using own resources or external financing, including a credit issued by another funding provider or financial leasing. No public aid, including the de minimis aid, has been received for such co-funding.

65. The maximum permissible aid intensity for the final beneficiaries referred to in Paragraph 30 of this Regulation and which do not correspond to the status of a large merchant shall be 50 % of the eligible costs of the investment project if the aid is granted in accordance with Article 18 of Commission Regulation No 651/2014.

[15 August 2023]

66. The Investment and Development Agency of Latvia shall evaluate the size of the final beneficiary and whether the final beneficiary does not correspond to the status of an entrepreneur in difficulty in accordance with the provisions of Article 2(18) of Commission Regulation No 651/2014 as of the moment of taking the decision to grant aid for commercial activity. Whether the final beneficiary does not correspond to the status of an entrepreneur in difficulty shall be evaluated at group level.

[29 October 2024]

67. [9 July 2024]

68. The final beneficiary may contest the decision of the Investment and Development Agency of Latvia on non-compliance with the conditions for aid for commercial activity to the Ministry of Economics. The final beneficiary may contest the decision of the Ministry of Economics to the District Administrative Court.

69. [9 July 2024]

70. The aid granted to the final beneficiary in accordance with Articles 14 and 18 of Commission Regulation No 651/2014 may be cumulated with the funding granted within the scope of another aid programme or ad hoc aid project, including for the same eligible costs, and with de minimis aid, provided that the funding granted in accordance with this Regulation together with the funding granted within the scope of another aid programme or ad hoc aid project does not exceed the maximum permissible intensity of regional aid and consultation aid that is determined accordingly in Paragraphs 63 and 65 of this Regulation.

71. If the conditions of Commission Regulation No 651/2014 are violated, the final beneficiary has the obligation to reimburse to the Investment and Development Agency of Latvia the unlawful aid for commercial activity received within the scope of the investment project, together with the interest using funds free of aid for commercial activity in accordance with the conditions of Chapter IV or V of the Law on Control of Aid for Commercial Activity.

[9 July 2024]

72. The Investment and Development Agency of Latvia shall transfer the unlawful aid for commercial activity received from the final beneficiary into the State budget.

73. In accordance with Article 12 of Commission Regulation No 651/2014, the storage of information shall be ensured as follows:

73.1. the Investment and Development Agency of Latvia shall ensure the storage of information for 10 years starting from the date when the last aid was granted in accordance with this Regulation;

73.2. the final beneficiary shall ensure the storage of information for 10 years from the moment of granting aid in accordance with this Regulation.

VI. Conditions Related to Receiving Aid for Commercial Activity if Aid for Commercial Activity is Granted in Accordance with Commission Regulation No 2023/2831 or Commission Regulation No 1408/2013

[9 July 2024]

74. The aid for the final beneficiary referred to in Paragraphs 27 and 30 of this Regulation for the costs referred to in Sub-paragraph 18.2 of this Regulation, including equipment rental, shall be granted in accordance with Commission Regulation No 2023/2831 or Commission Regulation No 1408/2013.

[9 July 2024]

75. [15 August 2023]

76. The maximum permissible aid intensity from the eligible costs of the investment project for the final beneficiary referred to in Paragraph 27 of this Regulation shall be 100 %.

[9 July 2024]

77. The maximum permissible aid intensity for the costs referred to in Sub-paragraph 18.2.1 of this Regulation from the eligible costs of the investment project for the final beneficiaries referred to in Paragraph 74 of this Regulation, except for the case when aid is provided in accordance with Paragraph 27 of this Regulation, shall be as follows:

77.1. in level 3 region of the NUTS region of Rīga (according to the data of 2021) - 30 % (for large merchants), 40 % (for medium-sized merchants), or 50 % (for micro, small merchants);

77.2. in level 3 region of the NUTS of Kurzeme, Zemgale, Vidzeme (according to the data of 2021) - 40 % (for large merchants), 50 % (for medium-sized merchants), or 60 % (for micro, small merchants), except for Limbaži municipality, Ogre municipality, Saulkrasti municipality, and Tukums municipality;

77.3. for administrative territories in level 3 region of the NUTS of Pierīga (according to the data of 2021), including in Limbaži municipality, Ogre municipality, Saulkrasti municipality, and Tukums municipality - 30 % (for large merchants), 40 % (for medium-sized merchants), or 50 % (for micro, small merchants).

[15 August 2023]

78. The maximum permissible aid intensity for the costs referred to in Sub-paragraph 18.2.2 of this Regulation from the eligible costs of the investment project for the final beneficiaries referred to in Paragraph 74 of this Regulation shall be 50 %.

[15 August 2023]

78.¹ If the initial investments planned in the project are made in the Republic of Latvia within two or more level 3 regions of the NUTS of different aid intensity, one of the following aid intensity shall be applied:

78.¹ 1. the aid intensity of the relevant level 3 region of the NUTS (according to the data of 2021) shall be applied to the initial investment costs within the jurisdiction of each level 3 region of the NUTS (according to the data of 2021);

78.¹ 2. if the merchant benefits in one or several level 3 regions of the NUTS of different aid intensity (according to the data of 2021) from the initial investments regardless of their location, the lowest aid intensity among level 3 regions of the NUTS of aid intensity (according to the data of 2021) in which the merchant benefits from the project implementation shall be applied to the whole project.

[15 August 2023]

79. In the cases referred to in Paragraph 74 of this Regulation, the aid shall not be granted to the following sectors and activities provided for in the investment project:

79.1. the sectors and activities taking into account the restrictions on sectors and activities referred to in Article 1(1) of Commission Regulation No 2023/2831 if the final beneficiary is applying for aid in accordance with Commission Regulation No 2023/2831;

79.2. the sectors and activities laid down in Article 1 of Commission Regulation No 1408/2013 and not to be aided if the final beneficiary is applying for aid in accordance with Commission Regulation No 1408/2013;

79.3. the sectors referred to in Paragraphs 60 and 60.¹ of this Regulation and not to be aided and the activities provided for in the investment project, except for the cases referred to in Sub-paragraphs 60.1 and 60.5 of this Regulation.

[9 July 2024]

80. If the final beneficiary simultaneously operates in one or several sectors referred to in Article 1(1)(a), (b), (c), and (d) of Commission Regulation No 2023/2831, in the sectors referred Article 1 of Commission Regulation No 1408/2013, in the sectors not to be aided specified in Sub-paragraphs 60.2, 60.3, 60.4, 60.6, and 60.8, and in the activities referred to in Paragraph 60.1 of this Regulation, it can receive aid if the final beneficiary ensures the operation of these sectors or separation of accounting so that in accordance with Article 1(2) of Commission Regulation No 2023/2831 or Article 1(2) and (3) of Commission Regulation No 1408/2013 the activities in the excluded sectors do not benefit from the de minimis aid granted in accordance with this Regulation.

[18 March 2025]

81. Prior to granting the de minimis aid, the Investment and Development Agency of Latvia shall verify the following conditions:

81.1. whether the planned de minimis aid together with the de minimis aid granted in the previous three years from the date of granting the aid does not exceed the maximum amount of the de minimis aid at the level of a single undertaking laid down in Article 3(2) and (3) of Commission Regulation No 1408/2013 if the aid is granted in accordance with Commission Regulation No 1408/2013. A single undertaking is the enterprise which complies with the criteria referred to in Article 2(2) of Commission Regulation No 1408/2013;

81.1.¹ whether the planned de minimis aid together with the de minimis aid granted in the previous three years from the date of granting aid does not exceed the maximum amount of the de minimis aid at the level of a single undertaking laid down in Article 3(2) of Commission Regulation No 2023/2831 if the aid is granted in accordance with Commission Regulation No 2023/2831. A single undertaking is the enterprise which complies with the criteria referred to in Article 2(2) of Commission Regulation No 2023/2831;

81.2. according to the information available in the public database of tax (fee) debtors administered by the State Revenue Service, the final beneficiary does not have any debts of taxes or fees, including the debt of mandatory State social insurance contributions the total amount of which exceeds EUR 150, except for tax payments for which the payment term has been extended, divided in instalments, deferred, or divided in instalments repeatedly, in accordance with Section 24, Paragraphs one, 1.³ and 1.⁷ of the law On Taxes and Fees, or in respect of which a settlement agreement is in force in accordance with Section 41 of the law On Taxes and Fees;

81.3. conformity of the final beneficiary with the provisions referred to in Paragraph 79 of this Regulation.

[9 July 2024; 18 March 2025]

82. If in accordance with Sub-paragraph 81.1 of this Regulation the maximum amount of de minimis aid for the final beneficiary has not been exceeded, the Investment and Development Agency of Latvia may provide de minimis aid in conformity with Article 5 of Commission Regulation No 1408/2013 only in the event that the aid planned for the final beneficiary within the scope of this Regulation will not exceed also the maximum amount of de minimis aid laid down in Article 3(2) of Commission Regulation No 2023/2831.

[9 July 2024]

83. The accounting of the de minimis aid shall be carried out in accordance with the laws and regulations regarding the procedures for accounting and granting of the de minimis aid.

[29 October 2024]

84. [9 July 2024]

85. [9 July 2024]

86. The final beneficiary may contest the decision of the Investment and Development Agency of Latvia on non-compliance with the conditions for aid for commercial activity and this Regulation to the Ministry of Economy. The final beneficiary may contest the decision of the Ministry of Economics to the District Administrative Court.

87. If the conditions of Commission Regulation No 2023/2831 or Commission Regulation No 1408/2013 are violated, the final beneficiary has the obligation to reimburse to the Investment and Development Agency of Latvia the unlawful de minimis aid received within the scope of the investment project, together with the interest on funds free of aid for commercial activity in accordance with the conditions of Chapter IV or V of the Law on Control of Aid for Commercial Activity.

[9 July 2024]

88. The Investment and Development Agency of Latvia shall transfer the de minimis aid received from the final beneficiary into the Sate budget.

89. The aid granted to the final beneficiary within the scope of the aid programme in accordance with Commission Regulation No 2023/2831 or Commission Regulation No 1408/2013 may be cumulated with other de minimis aid up to the relevant threshold laid down in Article 3(2) of Commission Regulation No 2023/2831 or Article 3(2) of Commission Regulation No 1408/2013, and may also be cumulated with the funding granted within the scope of another aid programme or ad hoc aid project, including for the same eligible costs or other State aid for the same risk funding measure if the relevant maximum aid intensity or the amount of aid determined in the State aid programme or in the decision of the European Commission on the compatibility of aid for commercial activity with the internal market of the European Union is not exceeded.

[9 July 2024]

90. In accordance with Article 6(3) and (7) of Commission Regulation No 2023/2831 or Article 6(3) of Commission Regulation No 1408/2013, the storage of information shall be ensured as follows:

90.1. the Investment and Development Agency of Latvia shall ensure the storage of information for 10 years from the date when the last aid was granted in accordance with this Regulation;

90.2. the final beneficiary shall ensure the storage of information for 10 years from the moment of granting aid in accordance with this Regulation.

[9 July 2024]

Prime Minister A. K. Kariņš

Minister for Economics I. Indriksone

---

Translation © 2025 Valsts valodas centrs (State Language Centre)