Latvia’s Ministry of Finance initiated a public consultation regarding amendments to a draft law “On Taxes and Fees” on 5 June, 2024.
The draft law can be viewed on the Draft Legal Acts (TAP) portal. This legislation provides for a number of significant changes and clarifications aimed at reducing the administrative burden for both taxpayers and the authorities.
The draft law proposes making modifications to the regulation of the calculation of overdue fines by determining that for late payment of tax (except customs duty), fees and other state-determined payment deadlines to be paid into the unified tax account.
It proposes overdue fines to be calculated for the payer only twice a month, namely on the first and 15th of each month. If payment is made before these dates, no interest will be due.
Additionally, the amendments stipulate that late payment interest will not be applied for late return filings, provided the payment is made before the deadline.
Taking into account that the expenses of tax debt collection have increased, the draft law is intended to increase the threshold of tax debt from EUR 15 to EUR 40. The threshold of uncollectible tax debt is not changed in relation to real estate tax and will continue to be EUR 15.
