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Latvia Abolishes Advance Tax Payments on Individual Business Income — Orbitax Tax News & Alerts

Latvia has published the Law of 23 March 2023 on Amendments to the Law on Personal Income Tax. The amendments provide that individuals are no longer required to make advance tax payments on business income, which were previously required quarterly based on taxable income in prior years or expected income in the current year. With the advance payment requirement abolished, income tax on business income is not generally calculated and paid with the annual tax return. The amendments are effective retroactively from 1 January 2023. Individuals that have already made an advance payment for 2023 may claim a refund.