Information on tax returns and tax payment procedures in Latvia.

Taxable period

The taxable period is the calendar year.

Tax returns

Income tax returns should be filed individually on a calendar-year basis between 1 March and 1 June in the year following the year of assessment. In case the annual income in 2021 exceeds EUR 62,800, the tax return should be submitted between 1 April and 1 July 2022 to recalculate PIT and ST. Husbands and wives may not file joint returns.

If a person’s total income from capital gains exceeds EUR 1,000 quarterly, a capital gains tax return should be filed quarterly by the 15th day of the month following the quarter in which relevant income was earned.

If a person’s total income from capital gains does not exceed EUR 1,000 quarterly, a capital gains tax return should be filed by 15 January in the following year.

Payment of tax

Latvian employers are required to withhold income tax on employment income paid to employees and remit the tax to the tax authorities.

Residents employed by foreign employers are required to calculate and pay advance income tax on a monthly basis.

A taxpayer registered as a performer of economic activity must pay EUR 50 within 15 days after filing a tax return if their income for the tax period is less than the minimum wage or zero.

Additional tax is payable by 23 June after filing the annual tax return. If the additional tax exceeds EUR 640, then payment may be split into three equal instalments due by 23 June, 23 July, and 23 August. If the filing deadline is 1 July, then payment deadlines are postponed by one month.

Communication with Tax authorities

The State Revenue Service (SRS) reviews the prepared tax returns within 3 months period. In a situation when the SRS establishes that the declaration has been filled incorrectly, the taxpayer is obliged to pay the additionally calculated tax within 30 days.

In addition, the SRS may take other tax control measures, such as comparing the data available to the SRS. In such cases, the SRS asks the taxpayer to explain why the declared income does not match the information available to the SRS.

More information available in MindLink.lv articles by PwC consultants:

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