I. State Tax Inspectorate
We would like to inform that the State Tax Inspectorate (hereinafter - STI) has announced the tax aid measures limitations for the taxpayers affected by COVID-19 by the Order of STI No. VA-27.
The STI has informed that the interest-free repayment of a tax loan can be set out until 31 December 2022 and the tax debt deferred for a company may not exceed 300.000 EUR.
We would like to note that in the Order No. VA-27 the STI has announced that the taxpayers affected by COVID-19 may conclude interest-free tax loan agreement for a maximum period of 2 years, i.e. until 31 December 2022 and the amount of tax deferred may not exceed 300.00 EUR and 100.00 EUR for natural persons. The tax administrator will not require collateral, mortgage, warranty or guarantee from the company or person to secure this deferred tax amount.
The STI has also informed that tax debts in excess of 300.000 EUR will already be subject to interest of 0.01 percent per day and the same is valid for more than 2 years term tax loans. In addition, for such tax loans, the STI will use the standard application review procedure - it will require the taxpayer to submit all documents disclosing financial situation of the taxpayer, expenses incurred, ability to pay, etc. For companies who would like to defer tax debt for more than 2 years or the amount of tax debt exceeding 300.000, will also be required to provide collateral or other assurance measures.
Please be kindly reminded that businesses and natural persons who have been negatively affected by COVID-19 will be able to defer taxes until 31 December 2020. Within two months of this deadline, businesses and natural persons will be able to apply to the STI and request to conclude in preferential form an interest-free tax loan agreement (until 28 February 2021).
Please be also kindly noted that the quarantine in Lithuania is announced from 7 November 2020, therefore the mentioned terms and conditions are subject to change.
II. State Social Insurance Fund Board
We would like also to note that the State Social Insurance Fund Board (hereinafter – SSIFB) has informed that according to the Order V-586 during the second wave of quarantine SSIFB will provide tax aid measures for businesses whose activities were restricted because of the quarantine, for example catering services, sport clubs, hotels and etc. SSIFB provides tax aid measures to businesses for the quarantine period and for two months after the end of the quarantine period. Also, businesses who would like to use tax aid measures established by SSIFB shall submit the request not to impose sanctions and will be able to pay social security contributions or submit a request for deferral at the end of quarantine. The economic activities of the companies or the self-employed persons must also be included in the list of STI of companies or persons affected by COVID-19.
Should you have any questions, please do not hesitate to contact Leinonen's Tax team. We would be happy to provide more information about the mentioned changes or regarding support with communication with STI which may be relevant to Your business.
The information above was prepared by the Leinonen tax team.
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