There are some requirements to consider both before and during the temporary suspension of business activities:

  • Before the temporary suspension of business:
    • all debts have to be paid, also prepayments for the duration of the temporary suspension of business activities;
    • no employees can be employed during the temporary suspension of business activities;
    • an annual report or financial statement has to be submitted for the last reporting period;
    • all liabilities have to be settled and creditors’ claims with the deadline after the suspension ensured;
    • a report of economic activities has to be prepared and submitted for at least 12 months.
  • During the temporary suspension of business:
    • tax returns have to be filed, unless the relevant tax law states otherwise;
    • employer reports do not have to be submitted;
    • by the decision of the SRS, the business entity is excluded from the VAT register, the last VAT return for the latest tax period has to be submitted within 20 days after the exclusion decision;
    • the corporate income tax (CIT) declaration has to be submitted during the suspension, minimum CIT amount of 50 euros/year still applies, but CIT advance payments are not required to be paid for the months of the suspension;
    • annual reports have to be prepared and company’s archive stored.

Read more about the rules of the temporary suspension of business activities on our Latvian website: http://leinonen.lv/news/news-2017/temporary-suspension-of-business-activities-obligations-of-taxpayer