Latvian tax authority allows extension of tax payment deadlines to five years – Baltic News Network


Since Monday, August 1, honest taxpayers who are experiencing financial difficulties for reasons beyond their control have the option of applying to the State Tax Department (VID) for a five-year extension of the deadline for paying taxes.

This option is provided by the amendments adopted for the Law on Taxes and Fees to reduce the consequences of the Covid-19 crisis and the Russian-Ukrainian war, as told by BNN by VID.

In addition to the existing regulations, which provide taxpayers with the opportunity to request a repeated extension of the six-month payment deadline, which is a permanent solution for cases where business activities are significantly affected by forces beyond their control.

In the same way as today, the extension of the deadline for payment of taxes in general cases, as well as the extension of the deadline for repeated reimbursement of taxes, will be applied with a late penalty of 0.0125% for each day lack.

The VID Electronic Declaration System (EDS) provides a special application form. In this document, users should explain the reason for extending the fee payment deadline and list the specific reasons/consequences that make it difficult to meet the normal fee payment terms.

The request for extension of the fee payment period must be submitted before the end of the existing fee payment period.

To decide on the extension of the tax payment deadline, VID must assess whether the actual financial situation of the taxpayer justifies an extension. Cooperation with the tax administration is also an important factor, including tax payment history, previous extensions and tax returns, as well as the existence of any penalties applied during tax audits.

If the taxpayer does not comply with the conditions for extending the tax payment deadline, VID has the right to cancel the extension.


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