The parliament adopted the amendments on 6 November 2025, which will take effect on 1 January 2026.
Latvia published the Law on Amendments to the Law on Taxes and Duties in the Official Gazette on 21 November 2025, introducing measures to implement Council Directive (EU) 2023/2226 of 17 October 2023 (DAC8), including new reporting and due diligence requirements for crypto-asset service providers.
DAC8 provides for the automatic exchange of information on crypto-assets between EU countries. It is the eighth amendment of the Directive on Administrative Cooperation in Direct Taxation. DAC9 introduces rules that allow the central filing of the Top-up tax information return by an ultimate parent entity or a designated filing entity within a multinational enterprise (MNE) group. This central filing mechanism is designed to relieve other constituent entities in different EU Member States from having to submit separate filings.
The amendments to the Law on Taxes and Duties are summarised below:
Crypto-Asset Reporting
Taxpayers must report transactions with crypto-assets to the State Revenue Service under conditions specified by the Cabinet of Ministers. The definition of crypto-assets aligns with EU Regulation 2023/1114 and relevant EU directives. Non-compliance with reporting or due diligence obligations may result in fines up to EUR 14,000.
Transfer Pricing and Controlled Transactions
Reporting of controlled transactions is required for amounts exceeding EUR 250,000, with global documentation required for amounts over EUR 20,000,000. Transfer pricing documentation must be submitted in structured electronic form and has legal force even without a signature.
Information Exchange and Data Use
Data received from EU member states may be used for tax administration, anti-money laundering, terrorism financing, and sanction enforcement without additional permissions. The procedures established for the automatic exchange of information on financial accounts, crypto-assets, and other relevant financial instruments.
Electronic Money, Digital Currency, and Crypto-Assets
Definitions were introduced for electronic money and central bank digital currency. Reportable crypto-assets are specified, excluding electronic money and central bank digital currency. Exchange transactions involving reportable crypto-assets are formally defined.
Account and Financial Reporting Update
Reporting requirements for financial accounts have been expanded to include holdings in electronic money and central bank digital currencies. Reporting distinguishes between new accounts and pre-existing accounts. Specific provisions apply to deposit accounts and to accounts used for company formation or capital increases.
Transitional Provisions
Transfer pricing documentation requirements apply to transactions beginning in the 2025 reporting year. Financial accounts as of 31 December 2025 are considered pre-existing, while accounts opened from 1 January 2026 onward are treated as new. Reporting obligations for 2026 and 2027 are adapted to account for these pre-existing accounts.
The Latvian parliament (Saeima) adopted the amendments on 6 November 2025, and will take effect on 1 January 2026.
