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Covid-19 – Summary of Measures Italy
June 6, 2020
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June 9, 2020

Covid-19 - Summary of Measures


Lithuania accounting news

Support measures for business

The Ministry of Finance has presented an aid package worth EUR 2 billion for companies affected by the coronavirus, who may already apply for additional funding.

The package includes grants, guarantees and other financial instruments. Companies facing difficulties due to the coronavirus and currently lacking working capital should review their loan repayment schedules and contact financial institutions (banks, leasing or factoring companies, credit unions, crowdfunding platforms, etc.), who will provide them with all the necessary information.

Initiatives adopted by the Ministry of Finance:

  • evaluation terms for the issuing of guarantees is to be shortened, new measures and schemes for their implementation are to be developed;
  • the concept of revolving loans is to be expanded (loans/guarantees will be granted not only for business development but also for liquidity);
  • additional funding activities are to be included;
  • no regional restrictions will remain in force;
  • measures will be accessible for large companies as well;
  • the range of service providers is to be expanded (alternative funders may join);
  • the limit of guarantees is to be increased by more than 4 times;
  • interest will be reimbursed for 6 months (for loans – from the date of the beginning of quarantine), when a banks grants loan repayment leave.

The Ministry of the Economy and Innovation has presented an aid package for small and medium enterprises (SMEs), as well as large companies facing difficulties due to the coronavirus. Initiatives adopted by the Ministry of the Economy and Innovation:

  • loans to pay bills to suppliers with whom companies have been unable to settle accounts due to the suspended activities of SMEs. For more information please visit here;
  • loans to maintain liquidity for SMEs and large companies. For more information please visit here and here;
  • loans from alternative investors for SMEs. For more information please visit here. For more information regarding the financial measures for business provided by Investment and Business Guarantees (INVEGA) please visit here.Upcoming initiative:
  • COVID-19 special fund for medium and large companies which will allow companies to recover more quickly. Various instruments used in the financial market will be applicable i.e. loans, bonds, convertible bonds, shares, as well as the funds of other investors. In its initial stage, the fund plans to allocate EUR 100 million.

Tax payments
Automatic postponement of tax payments

The State Tax Inspectorate (the STI) announced a list of taxpayers that may have been directly affected by the coronavirus. You can check the list here (currently available only in Lithuanian). From the 16th of March 2020 until the end of the state of emergency and quarantine period, all taxpayers listed in the announcement will be automatically (with no additional appeal to the STI) exempt from:

  • tax recovery (i.e. the STI and the State Social Insurance Fund Board (SODRA) will not collect reported and unpaid taxes);
  • interest payment (i.e. the STI and SODRA will not calculate interests for late payment of taxes).

Individual requests for the postponement of tax payments

Taxpayers who have not been included in the list, but have also been affected by the coronavirus and would like to postpone tax payments (i.e. conclude a tax loan agreement or use a tax recovery or interest payment), can submit a simplified application to the STI.
The taxpayer needs to:

  • fill in an application form (currently available in Lithuanian only);
  • indicate the reasons why the applicant should be considered to have been negatively affected by the coronavirus (e.g. due to restrictions directly applicable to economic activities, changes in the market, negative impact caused by the coronavirus to business partners’ economic activities, etc.). No additional mandatory documents are required when submitting an application form, but STI retain the right to request them in individual cases.

Tax loan agreements

A tax loan agreement can only be concluded when the taxpayer has an obligation to pay taxes (i.e. has submitted tax return forms and the obligation to pay taxes has occurred before the 16th March). After the end of the state of emergency, taxpayers on the announced list will have 2 months to enter into a tax loan agreement. When the tax loan agreement has been concluded, tax payment may be postponed until the end of the state of emergency and should be paid according to an agreed timetable (if the taxpayer does not request an increased payment). Those who already have such agreements may submit a request to change their tax loan schedule and terms.

Other postponed tax obligations

The deadline for declaring and paying annual personal income tax is postponed until the 1st of July 2020. The start of the period for the filling of personal income tax returns was postponed and commenced on the 15th of April.
The term for the repayment of personal income tax overpayments remains unchanged. Taxpayers who have correctly and punctually filed their returns will be refunded by the 31st of July 2020.

Real estate and land taxes

The Municipality of Vilnius adopted a decision valid from the 16th of March 2020 until the end of the state of emergency and quarantine period:

  • to exempt real estate taxpayers (i.e. legal and natural persons whose activities were limited or restricted due to the state of emergency) from the obligations to pay real estate and land taxes;
  • taxes will be collected from taxpayers that still operate during the state of emergency e.g. food retailers, pharmacies and etc.

It is important here to note that each municipality retains the right to individually decide whether the real estate and land taxes should be reduced due to the state of emergency or quarantine. For more detailed information, please contact the relevant local municipality.

Subsidies for wages paid during the idle time

Request for state subsidies

All employers, regardless of their economic sector, are entitled to state subsidies for their employees’ salaries if idle time was announced due to the state of emergency and quarantine under Article 47 part 1 (2) of the Labour Code.
To qualify for state subsidies, employers also need to fulfill the following additional requirements:

  • during the past year the employer and its representatives have not had any administrative penalties for illegal or undeclared work, or violations for employing foreign nationals;
  • during the last year the employer’s representatives have not had more than one administrative penalty for violations of labour laws, occupational safety and health regulations, or the terms of commercial activities;
  • the employer does not have the status of a budgetary entity;
  • the employer must not be bankrupt or in liquidation.

The amount of state subsidies

An employer has the right to select from two models as regards their eligible amount of state subsidy for idle time:

  • 70% of the salary of the employee, but not more than EUR 910.5 gross (for a full month of idle time); or
  • 90% of the salary of the employee, but not more than EUR 607 gross (for a full month of idle time). In the event that idle time is announced for less than a month, the amount of state subsidy will be calculated proportionally.

The duration of subsidies

State subsidies shall be paid from the date when the idle time was announced due to the state of emergency and quarantine.
Employers must retain at least 50 % of all employee positions (workplace) for which state subsidies were paid for at least 3 months after the end of the subsidy payments. Otherwise, the employer will need to return the subsidy in full amount.

If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Kristina Alekniene at