Latvian residents will soon begin submitting their annual income declarations, and understanding certain nuances about deductible expenses is crucial for getting a tax refund.
Starting March 1, Latvian residents will commence the submission of their annual income declarations. Obtaining a refund of overpaid personal income tax (IIN) heavily relies on accurately declaring 'allowable expenses'. However, there are certain nuances that taxpayers often overlook. The State Revenue Service (VID) has been approached by TVNET+ for insights on how individuals can reclaim a portion of their expenses related to charitable donations and children's education.
The investigation reveals important details regarding what can be included as deductible expenses. For instance, charitable contributions are subject to specific regulations and depend on the status of the recipient organization. The Riga congregation of the Evangelical Lutheran Church of Latvia maintains its status for these donations, while the Orthodox Church of the Ascension in Riga lost its eligibility in May 2014. Such distinctions can significantly affect taxpayers' ability to claim deductions, thus influencing the overall tax refund.
As the submission deadline approaches, it becomes imperative for taxpayers to familiarize themselves with these rules to maximize their refunds and avoid unintentional errors. Ignoring these nuances may lead to missed opportunities for reclaiming funds that could otherwise benefit individuals financially. Hence, seeking advice from the VID can be beneficial for proper guidance during this period.
