Thousands of tax debtors apply for penalty waiver

Since October 1 when the Latvian State Revenue Service announced a waiver of late payment interest and penalties on tax debts as a one-off measure to stimulate legal business, altogether 6,629 tax debtors have submitted applications to pay the principal tax debt and have their penalties waived.

By November 23, the State Revenue Service has taken 4,915 decisions about granting this kind of tax relief in respect of the total debt of €49.119 million which comprises the principal debt, late payment interest and penalties.

So far 3,172 individuals and 3,457 corporate entities have applied for the waiver of penalties on their tax debts. The decision to grant this tax relief have been made in respect of 2,386 individuals with the total debt of €5.974 million as well as in respect of 2,529 corporate entities with the total debt of €40.558 million.

Tax debtors still have time until January 2, 2018, to apply for the tax relief in the form of a one-off waiver of the late payment interest and penalties on tax debts upon full payment of the principal debt which can be paid off in monthly installments until December 31, 2019, at the latest.

The waiver was proposed by the Finance Ministry, which said that easing the debt burden of tax payers was one of the tools to encourage tax payers to leave the shadow economy.

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