Special rules for applying personal income tax to Ukrainian civilians are laid down in section 8.3 of Law on Assistance to Ukrainian Civilians.
A Ukrainian civilian who is a non-resident for the purposes of the application of the Law “On personal income tax” (hereinafter in this section – Ukrainian civilian – non-resident) has the right to apply non-taxable minimum of EUR 250 per month, as well as personal income tax allowance for a dependent person – a minor child residing in the Republic of Latvia (In 2022, personal income tax allowance for a dependent person is EUR 250 per month).
For a Ukrainian civilian – non-resident who is salary taxpayer, the non-taxable minimum and the allowance for a minor child shall be applied by the employer.
An employer who, in accordance with a statement of the State Revenue Service, has the right to apply the non-taxable minimum and the allowance for a minor child to the income from paid employment obtained by a Ukrainian civilian – non-resident in the Republic of Latvia, at the place of disbursement of income shall apply the progressive personal income tax rate – 20% for income up to EUR 1667 per month and 23% for income exceeding EUR 1667 per month.
If a Ukrainian civilian – non-resident in Latvia receives only income from paid employment, the personal income tax withheld by the employer is final. This means that a Ukrainian civilian – non-resident will not have the obligation to submit an annual income return and make personal income tax recalculations, for example, when leaving Latvia.
For more information, see the Law on Assistance to Ukrainian Civilians.