About taxes and fees
•Public rating system
• Submissions for term extensions
– 15 days = 5 DD
• the Latvian-Russian tax convention expires
VAT
VAT rate for fruits & vegetables – 5% = 12%*
* Valid until 31.12.2024.
Registration threshold – 40,000 = 50,000 EUR
Representative cars – 100% limitation period
•maintenance costs within 5 years, counting from the moment when the car is registered in ownership or possession
Lost debts (Article 105 in the new wording)
• limit value of lost debt 430 = 1,000 EUR*;
* refers to invoices issued after 01.01.24.
• min deadline for stopping delivery – 6 = 3 months;
•VAT can be adjusted in any (current) VAT return
Exchange of information on cross-border payments
VAT exemptions (Article 52)
141) the participation fee determined by the association or foundation (NGO) for participation in sports competitions organized in accordance with the requirements of the regulatory acts regulating the field of sports, if the NGO does not obtain additional income from the organization of these sports competitions. If, however, additional income is obtained from the organization of sports competitions, it can be directed to the goals of NGOs in the field of sports;
142) fee for a sports lesson provided by an NGO, which implements a properly licensed program in the field of sports, to persons engaged in sports, if the purpose of the provided services is not to generate additional income for this NGO. If additional income is earned, it can be directed to the provision or improvement of these services;
143) fees for children’s stay in children’s camps organized in accordance with the requirements of the regulatory acts regulating the field of education.
CIT
• credit institutions and consumer lending service providers – advance payments in the amount of 20% of the profit made in the pre-tax year (new Article 4.1);
•representative cars – there is no CIT for operating expenses, if the car has been registered in possession or possession for more than 5 years*.
* will also apply to representative cars purchased until 31.12.2023.
• costs to non-residents – CIT does not have to be withheld from payments to private pension funds of EU/EEA/convention countries for real estate rental/leasing and management and consulting services.
TIN
•health or accident insurance premiums – not taxed 426.86 –750 EUR;
•IIN for remote work compensations – 30 Þ 40 EUR for full-time work per month is not taxed; the rest of the regulation does not change, but is included in Article 8;
• tuition fees covered by the employer for studies at accredited universities in EU/EEA countries – exemption from VAT if related to the acquisition of skills needed by the employer
•IIN exemption for assistance for social purposes from the funds of the trade union / SLO/ RO or its institution – 1000 Þ 3000 EUR;
• Contributions made to pan-European private pension plans – eligible expenses, which are equated to contributions to private pension funds;
• new VAT exemption – income from received support for natural persons (outside of their economic activity) if realized through SRS or Altum
•IIN exemption for NVA scholarships and rewards – extended until 2026.
Minimum salary – 620 Þ 700 EUR,
In construction of GV – 780* Þ 930 EUR
* until 31.12.2024. 780 EUR – for workers in the 9th profession group
Extensions of IIN transition regimes until 2024.
• for state support for agriculture or EU support for agriculture and rural development (PN item 94)
• Criteria of Article 11.7 of the Law for the seller of agricultural land (PN 108)
Partnership regulation – from 01.07.24.
MUN and royalties
• Special royalties regime – also in 2024.
•Unit MUN/royalty rate – 25%
• MUN payers are allowed to apply the non-taxable minimum and benefits for a dependent person (in relation to other types of income).
Excise tax
Gradual increase in excise duty rates
with March 1, 2024/2025/2026 for alcoholic beverages – beer, wine, fermented beverages (with alcohol content up to and above 6%), intermediate products (with alcohol content up to 15% and 15-22%), other alcoholic beverages.
with March 1, 2024 and January 1, 2025/2026 for petroleum products in free ports and SEZs and tobacco products – cigarettes, cigars and cigarillos, smoking tobacco (finely cut tobacco, other smoking tobacco), tobacco leaves, heated tobacco, e-liquids and tobacco substitute products.
with March 1, 2024 and January 1, 2026 for soft drinks with a sugar content of 8g/100 ml and energy drinks, regardless of sugar content.
with January 1, 2024/2026 for natural gas for use as a fuel (in cases where the de minimis support rate specified in paragraph 125 of the PN is not applied).
Natural resource tax
New tax objects
– extraction of hydrocarbons;
– textile products;
– single-use products containing plastic (wet wipes, cylinders, filters for tobacco products) and fishing gear, which are not subject to the manufacturer’s extended liability system;
– tires with which vehicles are equipped (which are permanently registered for the first time in Latvia);
– plastic packaging and the amount of plastic contained in composite packaging, which was not recycled or regenerated during the reporting period;
Rate increase:
– for vehicles (the rate will double);
– on household and hazardous waste disposal;
– about the extraction of natural resources;
– for packaging from polystyrene foam and foam plastic raw materials
Other amendments provide for:
– supplement the conditions for the application of DRN in relation to plastic and composite packaging, determine the DRN rate for composite cardboard packaging as plastic packaging;
– regulations for the creation and application of the producer’s extended liability system for textile products;
– clarify the application of the DRN for the emission of particles PM10 in the air, determining the application of the DRN for total dust emissions (PM), as well as for batteries and accumulators, observing the new types and wordings;
– specify the entry into force of the exemption from DRN payment after the conclusion of the contract with the deposit system operator for participation in the deposit system;
– clarify the requirements for a foreign person to participate in the manufacturer’s extended liability system;
– to specify the application of the DRN in relation to the savings to cover the DRN and its calculation for waste disposal after placement in the bioreactor;
– to supplement the transitional provisions of the law by determining the deadlines for entry into force.
Gambling tax
Rate increase
• for gambling machines – 5172 Þ 6204 EUR for each slot of each gambling machine per year
•for roulette, card and dice game – 28,080 Þ 33,696 EUR per year for each table.
• for interactive gambling games – 10% Þ 12% of the revenues of organizing the game.