Tax and duty system in Latvia

Law on Taxes and Duties

On 2 February 1995 the Saeima of the Republic of Latvia adopted the Law on Taxes and Duties, which entered into force on 1 April 1995. This Law shall apply to all taxes and duties, unless the specific tax law provides for other procedures appropriate to the specific nature of the particular tax or duty, which may not conflict with this Law. The procedures for determining the customs duty, collection and application of sanctions shall also be regulated by the Customs Law and other laws and regulations governing the procedures laid down in customs matters.

There are 14 taxes imposed in Latvia in accordance with the specific tax law:

1. the personal income tax
2. the corporate income tax
3. the immovable property tax
4. the value added tax
5. the excise duty
6. the customs duty
7. the natural resources tax
8. the lottery and gambling tax
9. the mandatory State social insurance contributions
10. the electricity tax
11. the micro-enterprise tax
12. the vehicle operation tax
13. the company car tax
14. the solidarity tax

Find out about changes in tax policy in 2024 here.
Find out about changes in tax policy in 2023 here.
Find out about changes in tax policy in 2022 here.
Find out about changes in tax policy in 2021 here.

Law on Taxes and Fees is the general tax law and it lays down:

1. notification of the documents issued by the State Revenue Service (Selection 7.²);
2. procedures for submitting a submission to the State Revenue Service (Selection 7.³);
3. types of taxes (Selection 8);
4. objects of local government fees (Selection 12);
5. classification of taxpayers (Selection 14);
6. taxpayers’ general obligations (Selection 15);
7. registration of taxpayers (Selection 15.¹);
8. rights of taxpayers (Selection 16, 33.²);
9. obligations of the Tax Administration (Selection 18, 18.¹, 18.²);
10. prohibition of disclosure of information on taxpayers (Selection 22);
11. tax review (audit) and tax control regulation (Selection 23, 23.², 32, 32.⁴, 34);
12. the single tax account regulation (Selection 23.¹);
13. solutions for voluntary compliance with tax obligations (Selection 24, paragraph eleven of Selection 26, Selection 41);
14. cases when a tax debt shall be written-off (Selection 25, 25.², 25.³);
15. cases when tax overpayments and erroneously paid payments shall be annulled (Selection 25.¹);
16. recovery of late tax liabilities (Selection 26);
17. the enforcement of the decisions of the Tax Administration (26.¹);
18. refunding of erroneously recovered payments and overpaid tax amounts (Selection 28);
19. assessment of late payment charges (Selection 29);
20. restrictions on the use of sash (Selection 30);
21. regulation on suspension of economic activity (Selection 34.¹, 34.²);
22. restrictive measures in the field of electronic commerce monitoring (Selection 34.⁴, 34.⁵);
23. procedures for contesting and appealing the decisions taken by officials of the State Revenue Service on tax matters (Selection 37);
24. mutual assistance in the recovery of tax claims in the European Union (Chapter X);
25. regulation of the reimbursement of late tax liabilities of a legal person (Chapter X);
26. automatic exchange of information regarding financial accounts (Chapter XII);
27. electronic recording of information at a construction site and use thereof (Chapter XIV).
28. resolution of disputes arising with the competent authorities of other European Union Member States concerning the interpretation and application of International Treaties regarding elimination of double taxation of income and capital (Chapter XV);
29. administrative offences in the field of taxations (Chapter XVI);
30. Simplified tax payment solution (Chapter XVII).
     

The tax and fee system of the Republic of Latvia shall consist of:

1. the state taxes, the taxable objects and rates of which are determined by the Saeima;
2. the state fees levied in accordance with laws and Cabinet regulations;
3. the local government fees levied in accordance with the Law On Taxes and Fees, Cabinet regulations and binding regulations of local governments;
4. the taxes specified in the directly applicable European Union legislation.