To support merchants, it is offered to reduce rents in public property

For consideration at the government meeting in the steering group of the Minister of Finance Jānis Reirs (JV) for business and employee support, a proposal is submitted from 11 October to 31 December 2021 to grant rent reduction or exemption to businesses and other economic operators, associations and foundations or the property of a capital company controlled by a public person.

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In the management group for business and employee support, the proposal stipulates that the support is applied by state and local government institutions, as well as derived public persons and public-controlled capital companies, free ports and special economic zones (lessors).

The aid is planned as a reduction in rent in line with the reduction in turnover, but not more than 90%, a rent waiver of 100% if the leased object is not used at all, or the non-imposition of default interest and penalties in the event of late payment. The lessee makes payments for the services necessary for the maintenance of the rental object (for example, electricity, heat, water supply), real estate tax compensation and covers insurance expenses.

In order to apply a rent reduction or exemption, the lessee must submit an application to the lessor and meet certain criteria:
• Revenues from economic activity support during the month have decreased by at least 30% compared to the average turnover in July, August and September 2021 combined and this decrease is due to economic constraints related to epidemiological precautionary measures against the spread of Covid-19 infection. to limit. Associations and foundations are assessed for a reduction in their operating income;
• there is no tax debt administered by the State Revenue Service, which is more than 1000 euros, or, if the debt is higher, an extension of the payment term has been granted or an agreement on voluntary payment of taxes has been concluded, or an agreement has been concluded;
• insolvency proceedings have not been initiated;
• there have been no delays of three or more rents and other related payments or any other material outstanding contractual obligations to the lessor in the past year, or an agreed debt repayment schedule has been agreed with the lessor and settlement is in full.
• is not a legal person or association of persons registered offshore within the meaning of the Public Procurement Law or, if it is a legal person registered in Latvia, the owner or holder of at least 75% of its capital shares (shares) is not a legal person or association of persons registered offshore.