THE SRS will pay the idle benefit COVID-19 to self-employed persons affected by the crisis

By continuing to provide support to businesses and citizens in relation to the economic consequences caused BY THE COVID-19 crisis, Cabinet Regulation No. 179 has been adopted on 31 March of that year “Provisions on idle benefits for self-employed persons affected by Covid-19 distribution”, which provides for the cost of idle benefit to self-employed persons in idle.
Unemployment benefits for self-employed persons are also granted and paid by the State Revenue Service (SRS) in accordance with the abovementioned Cabinet regulations, which permit the elimination of total loss of income and livelihoods.
What are the criteria laid down by the Government for the payment of idle benefits?
In accordance with CABINET regulations, natural persons who have registered IN THE SRS as performers of economic activity and have performed State social insurance mandatory contributions (VSAOI) as self-employed persons or beneficiaries of royalties may apply for an idle benefit. Self-employed micro-enterprise taxpayers may also apply for an idle benefit. In both cases it is essential that, after 14 March 2020, they have not received income from economic activity during the downtime period.
How can i apply for an idle benefit?
In order to apply for an idle allowance, the self-employed person shall submit a reasoned submission of a specific form TO THE SRS electronic declaration system (EDS). For the period from 14 March to 31 March 2020, the submission shall be submitted by 25 April 2020; hereinafter - until the end of the following 25.dat.
The self-employed person shall indicate in the submission the given name, surname, taxpayer registration number, the bank account opened in Latvia and the period of downtime, as well as the justification regarding the occurrence of the downtime due to the circumstances caused by the crisis. The application must also certify that there is no income from economic activity during the specified period and that the self-employed person is not in the period of incapacity.
A list OF self-employed persons who have received an idle allowance shall be published BY THE SRS on their website under THE HEADING “COVID-19”.
What is the idle allowance for self-employed and how long will it be paid?
The amount of the idle benefit for the micro-enterprise taxpayer shall be 50% from the average revenue from economic activity of the last two quarters (second half of 2019), but not more than 700 euros per month.
On the other hand, the general tax payers and royalties, IN the amount OF 75%, of the income of the last two quarters (second half of 2019) after THE payment OF SSO, but not more than 700 euros per month.
The amount of the idle benefit shall be calculated IN THE SRS according to the data declared BY the self-employed person SRS.
THE SRS idle allowance shall be granted and paid in accordance with the period of downtime indicated in the submission to the self-employed person account indicated in the submission within five working days after receipt of the submission.
An idle allowance for self-employed persons may be granted for the period from 14 March to 14 May 2020, but not longer than the decision of the Cabinet regarding the emergency situation.
The idle benefit is not subject to personal income tax and mandatory social insurance contributions.
The disbursement of the idle allowance shall be terminated if the self-employed person in the time period of the idle benefit is interrupted by idle and income from economic activity.
What are the criteria laid down by the Government for the refusal of idle benefit?
When assessing claims received on the cost of self-employed downtime allowance, THE SRS must be strictly guided by the criteria laid down IN CABINET Regulation No 179. The government has decided that the aid measures will be eligible for taxpayers who have so far been honest and responsible in fulfilling their obligations against the country. Only those self-employed persons who have carried out VSAOs as self-employed persons or beneficiaries of royalties or paid a micro-enterprise tax will also be eligible for idle benefits, so THAT THE provisions OF THE BOM provide for a number of criteria when THE SRS cannot grant idle benefits.
THE SRS may not grant an idle allowance, for example, if the average VSAOs monthly payments in the second half of 2019 have been less than 20 euros; if the self-employed person is also a worker at the same time and has received more than a minimum wage in the basic employment place or is a worker in a non-idle enterprise, if the self-employed person has a tax debt over 1000 euros or insolvency proceedings etc. Similarly, those provisions do not apply to persons established as royalty payers.
The criteria when THE SRS cannot be granted to a self-employed idle benefit are laid down IN CABINET Regulation No. 179 “provisions on idle benefits for self-employed persons affected by Covid-19 distribution”.
Current information on the aid measures in the field of taxation related to THE difficulties caused BY COVID-19 and the possibility to apply for them on THE SRS website under THE HEADING “COVID-19”, as well as on the website of the Ministry of Finance, www.fm.gov.lv “COVID-19” on the website of the Ministry of Finance.
In the event of questions and uncertainties, entrepreneurs can call a special SRS support telephone IN COVID-19 for taxpayers affected by the crisis 67120020, as well as ask their questions in writing IN THE SRS electronic declaration system (EDS) under “correspondence with THE SRS”.
Information prepared by: SRS public relations
Tel. 67122668, 67122670
Taliban Street 1, Riga, LV-1978