The Latvian State Revenue Service has stated that some residents may not see an overpayment of personal income tax when filing their income declarations due to changes in tax regulation rather than errors in their declarations or the electronic filing system.
The Latvian State Revenue Service (VID) has announced that, based on recent changes in tax and relief application over the past year, some residents may not experience an overpayment of personal income tax (IIN) upon submitting their income declarations. This alteration is not a result of mistakes in the declarations or the electronic filing system, but rather a reflection of tax policy adjustments. Specifically, the differentiated (projected) non-taxable minimum was abolished in 2025, replaced by a uniform, fixed non-taxable minimum of 510 euros per month, regardless of individual income levels.
As a consequence of this legislative change, individuals were able to have their income taxes deducted more accurately throughout the year. This accurate monthly deduction means that many residents will not have a tax overpayment at year-end, as the tax discrepancies that previously arose in past years may no longer exist. The VID emphasizes that a lack of identified overpayment in the income declaration should not be seen as indicative of an error; rather, it can simply signify an accurate tax calculation.
Despite this clarification, VID maintains that it is still necessary for residents to submit their annual income declarations regardless of whether an overpayment has occurred. The filing remains a crucial part of tax compliance and should not be overlooked, even when the tax amounts appear correctly calculated and matched with the new tax policies.
