The Latvian tax authority emphasizes that pensioners may only receive a tax refund if the income tax has actually been paid, particularly as new tax regulations come into effect for 2025.
As the new income declaration period approaches in Latvia, the State Revenue Service is reminding pensioners that refunds of the income tax are only possible if they have actually paid the tax. This year, many seniors are interested in recovering any overpaid tax and submitting justified expense receipts. A significant change is set to take place in 2025, where pensions up to 1000 euros per month will be exempt from income tax, meaning that many pensioners will no longer have deductions from their pensions and will not need to recover taxes by submitting an annual income declaration.
These changes ensure that individuals receive higher income on a monthly basis throughout the year, rather than waiting until the following year after filing tax declarations. This reform is part of a broader review of tax policy that was implemented last year, which introduced a fixed non-taxable minimum, simplified income tax rates, and various other measures aimed at enhancing financial benefits for pensioners. The intent is to streamline the tax process and provide better financial support for the elderly,
Overall, these tax reforms signal a significant shift in how pensions are taxed in Latvia. They support the financial well-being of the elderly population by allowing them immediate access to their full pension income without the burden of delayed tax recovery. Such measures reflect a nationwide effort to improve the fiscal situation for pensioners, ensuring a more sustainable and supportive economic environment for older citizens in the country.
