Do salaried employees never need to file a tax return?
Not true — a salaried employee may well have to file. The common myth runs: "the employer handles everything." Not always. A return is compulsory where personal income tax was not fully withheld during the year, or where you are personally responsible for calculating it. The typical cases: registered business activity, income from renting out property, taxable foreign income, taxable dividends, or any income from which Latvian tax was not fully withheld. And one that is often forgotten: a return is also required where your tax-exempt income for the year exceeded €10,000.
📋 The rules
- Compulsory where tax was not fully withheld
- Covers business activity and rental income
- Also foreign income and dividends
- Where exempt income exceeds €10,000
- Late filing costs up to €700
🔓 Exceptions
- An employee with only Latvian salary correctly taxed at source normally need not file
- A voluntary return claiming eligible deductions can be filed for the three preceding years
- Overpaid tax is normally refunded within three months of a correctly completed return
⚠️ Penalties & fines
Lateness escalates quickly. Filing 3–10 days late — a warning or €25–70; 11–20 days — €75–150; 21–30 days — €155–280; more than 30 days late, or not filing at all — €285–700. And late-payment interest of 0.05% accrues for every overdue day. Beware the old thresholds: the former €78,100 figure applied to 2024 income. For 2025 income the current threshold is €105,300 — those above it file between 1 April and 1 July, while other mandatory filers file by 1 June.
📎 Official sources
- VID · Mandatory annual return →
- VID · Filing and payment deadlines →
- likumi.lv · Law on Taxes and Duties →
❓ Frequently asked
Must a salaried employee file?
Not always, but often. It is compulsory where tax was not fully withheld — for instance where you have rental income, foreign income, dividends, or registered business activity.
What is the €10,000 threshold?
A return must also be filed where your tax-exempt income for the year exceeded €10,000, subject to the statutory exclusions. This condition is frequently overlooked entirely.
What is the penalty for not filing?
Three to ten days late brings a warning or €25–70. Eleven to twenty days, €75–150. Twenty-one to thirty, €155–280. More than thirty days, or not filing at all, €285–700.
How far back can I claim deductions?
A voluntary return claiming eligible deductions can be filed for the three preceding years, even where filing was not compulsory. Overpaid tax is normally refunded within three months.
Is the threshold €78,100?
Not any more. That was the figure for 2024 income. For 2025 income the current threshold is €105,300, and those above it file between 1 April and 1 July rather than by 1 June.
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