Differentiated tax debtors will have until December 2020 to pay

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An estimated 60,000 taxpayers are at risk of becoming tax debtors after a differentiated income tax was introduced last year, but the State Revenue Service will allow deferring payment to December 2020.

Freshly-installed State Revenue Head Ieva Jaunzeme thinks it's best if residents don't delay payment, she told LTV February 26.

The government is currently reviewing legislative changes that would create a transition period for taxpayers who will have become tax debtors after progressive tax was introduced for people who earn more than €20,004 annually. 

Jaunzeme chose to call this a "tax surcharge", avoiding to call these people tax debtors. In addition, the people who will have to pay the additional tax will be able to cover the sum in installments. 

From March 1 to June 1, residents are asked to submit their income declarations to the State Revenue Service.

Those who earned less than €20,004, paying an income tax of 20%, will not have to pay a surcharge, while those who earned more and did not already pay the differentiated tax (23%) will have to pay 3% of their last year's earnings minus €20,004. 

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