The law “On Taxes and Duties” determines general taxation principles in Latvia. According to the law, the state or municipality imposes dues. The state has the right to impose duties on a number of different items.
The following taxes are currently applied in Latvia:
Corporate income tax, including withholding taxes;
Value-added tax;
Gambling and lottery tax;
Statutory social insurance payments (Social tax);
Personal income tax;
Real estate tax;
Natural resources tax;
Excise tax;
Customs duties.
Taxpayers are entitled to defer payment of the relevant taxes for a period of time from three months to one year subject to prior approval by the tax authorities. Overdue taxes are subject to a late-payment fee, which is 0.05% for each day beyond the due date. In addition, the unpaid amount is increased by the refinancing rate determined by the Bank of Latvia. Late payment and refinancing amounts cease to increase when the total of both reaches the amount of the original debt.…
