Factsheet for measure
LV-2020-1/613
–
Updated
– measures in Latvia
Cancellation of the advance payments of the personal income tax
Iedzīvotāju ienākuma nodokļa avansa maksājumi
Background information
The duty to perform the advance payments of personal income tax for the income from economic activity for the payer of personal income tax has been cancelled. The measure is applicable to advance payments from 1 January 2020.
The measure is set in force in Section 5 of the law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19” (adopted on 20 March 2020, valid from 22 March 2020).
Content of measure
Usually, in compliance with the Section 18 of the law On Personal Income Tax, concurrently with the tax declaration, submitted not later than until 1 June of the post-taxation year, the State Revenue Service calculate the size of advance payments in the taxation year for the payer on the basis of the income of the previous year. The payer who has commenced the economic activity in the taxation year has the right, within 30 days after commencement of economic activity, to voluntarily submit a calculation for the size of advance payments in the taxation year by forecasting the expected income.
Section 5 of a Law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19” determines that a payer of personal income tax has not a duty to perform the advance payments of personal income tax for the income from economic activity for the taxation year of 2020. This condition is applicable to advance payments from 1 January 2020. The payer of personal income tax may perform the advance payments of personal income on a voluntary basis.
Taxpayers who have already made the first advance payment (until 15 March 2020), can recover the money from State Revenue Service.
Updates
The following updates to this measure have been made after it came into effect.
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23 December 2020
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On 23 December 2021 the Law was amended by setting the same conditions for year 2021.
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10 June 2019
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On 10 June 2020 the new umbrella law “On the Suppression of Consequences of the Spread of COVID-19 Infection” was adopted and took over functions of the initial law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19”.
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Use of measure
No information to date.
Target groups
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Workers
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Businesses
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Citizens
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Applies to all workers
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Does not apply to businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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No special funding required
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
No specific involvement to report.
Views and reactions
As far as we know social partners participate in discussions on measures for the prevention and suppression the spread of COVID-19 and on crisis impact on economy. However specific opinions of social partners are not published.
Sources
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09 April 2020: Law On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19
(likumi.lv)
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09 April 2020: State Revenue Service informative page on COVID-19
(www.vid.gov.lv)
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28 September 2021: Law on the Suppression of Consequences of the Spread of COVID-19 Infection (edition 28 September 2021)
(likumi.lv)
