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 exceeds EUR 78,100, the tax return should be submitted between 1 April and 1 July of the following year to recalculate PIT and ST. Spouses 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 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.