A taxpayer is a natural person, business, or other entity that must pay taxes. The government has assigned an identifying number to each taxpayer in Latvia. In addition to many other kinds, there are taxes in Latvia that are levied on real estate owners, including income taxes and property taxes.
Latvian taxpayers
People who pay taxes in Latvia include:
A natural person or an employer
Within ten days of reaching an agreement with an employee about the performance of labor for compensation, the employer must register with the SRS. Upon registration, the agreement (copy) signed with the employee about the performance of labor for compensation must be provided.
Domestic worker working for a foreign employer
A natural who has reached the age of 15 and is employed on Latvian soil by one of the following parties is considered a domestic worker:
- an employer/foreign taxpayer if their habitual residence is in Latvia
- foreign employer whether they live in Switzerland or another EU state
- or an employer of another European Union Member State, the Swiss Confederation
A domestic worker who works for an employer or foreign citizen must register with the SRS within 10 days after the agreement to do labor in exchange for payment (regardless of whether the agreement was signed following the legal acts of the Republic of Latvia or another country). Upon registration, the agreement (copy) on the execution of labor for compensation must be provided. If, with the employee’s consent, an employer from another Member State that employs the individual and to whom the laws and regulations of the Republic of Latvia apply registers with the State Revenue Service as an executor of mandatory contributions, providing information about the employer’s name, registration number (in another Member State), and registered address. Any SRS Customer Service Center must be visited in person to register.
A foreign national or employee with a foreign employer
Within ten days of obtaining status in the Republic of Latvia, a foreign employee with an employer/foreign national must register at the SRS and submit documents containing the following information: the name and registered address of the employer in the country of delegation; the duration of the person’s delegation to perform specific work in the Republic of Latvia (the start and end dates of the period concerned, month and year); and subject matter of the delegation.
Exemptions
Based on a written request for exclusion from the Register of Taxpayers from the pertinent party, the State Revenue Service excludes an employer/natural person, a domestic employee with an employer/foreign national, or a foreign employee with an employer/foreign national from the Register of Taxpayers as performers of mandatory contributions.
Process for registering employees by the employer
Every employee must be registered with SRS by their employer (including the payment of microenterprise tax), which must do so no later than the day before the employee begins working. Additionally, if the information is provided electronically using the Electronic Declaration System, on paper, or no later than an hour before the employee begins working. Employers are required to register workers who have changed or lost their employment status no later than three days following the change or loss.
Documentation of residence
If a resident of Latvia receives income from abroad that is either not subject to taxation in the other corresponding state or is subject to taxation at a reduced rate following the tax convention, the resident of Latvia must provide proof of residency when requesting tax relief or exemption in the other state. When requesting tax relief as described in the applicable tax agreement, a Certificate of Residence may be created via the State Revenue Service Electronic Declaration System to demonstrate presence in Latvia. In the SRS Electronic Declaration System, a resident of Latvia who receives income may create and get a Certificate of Residence (CoR).
