The amendments mainly focused on the new rules on late payment interest and are aimed at improving the tax administration. 

Latvia’s parliament adopted the Law on Amendments to the Law on Taxes and Duties on 4 September 2025, which was published in the State Gazette on 19 September 2025.

The amendments mainly focused on the new rules on late payment interest:

  • The amendments clarify that tax administration will not initiate the recovery of overdue tax payments if the total amount of the debt to be recovered is less than the costs of the tax administration related to the adoption of a decision on the recovery of overdue tax payments and the initiation of recovery. However, concerning overdue real estate tax payments, the tax authorities will not initiate the recovery of overdue tax payments if the total amount of the debt to be recovered does not exceed EUR 15.
  • Interest on late tax payments (excluding customs duties) will now be calculated semi-monthly on the 1st and 15th of each month, instead of accruing daily.
  • If the interest on late tax payments (excluding customs duties), fees and other state-determined payments are to be paid into the unified tax account, a late payment penalty shall not be calculated for the payer in the following cases:
    • If the overdue tax, fee and other payments determined by the state have been received by the last date of the month in which the payment is due;
    • If the overdue tax, fee, or other state-mandated payment is settled by the next scheduled date for calculating the late payment fine, then no late payment fine will apply for the period of delay between the last calculated date of the fine and the actual payment date of the overdue tax, fee, or other state-mandated payment;
    • If a taxpayer submits a corrected declaration and has already paid the reduced tax, fee, or other state-determined payment on time, the late payment penalty will not apply, as long as that payment hasn’t been used for other liabilities. In this case, the penalty is not calculated from the day the payment is available in the single tax account until the corrected declaration is submitted. Currently, a 0.05% daily interest rate applies to late tax payments.
  • Under the amendments, Latvian tax authorities can now restrict access to certain domain names or IP addresses for e-commerce control under specific legal conditions.

The amendments will enter into force on 3 October 2025.