RIGA - The government on Tuesday repealed a bill that envisaged universal tax declarations from 2025.
The Cabinet of Ministers decided today not to proceed with amendments to the Law on Personal Income Tax, which the government had supported on October 9 and which would make personal income tax declarations mandatory from 2025.
The decision was taken after the Finance Ministry called for broader discussions and consultations with the government's social and cooperation partners on the proposed amendments, the objective of which was to improve the universal tax declaration system.
Also today, the government supported another amendment to the Personal Income Tax Law, which will be one of the bills accompanying the draft State Budget Law for 2024 and the budget framework for 2024, 2025 and 2026. The amendment clarifies provisions on employer's compensation and tax incentives, and tax payments by recipients of royalties.
These amendments provide for a number of measures to promote sustainable human capital development in Latvia and employers' motivation of employees. The amendments also deal with health insurance premiums covered by employers and compensation payments for remote work done by employees. Furthermore, the amendments streamline taxes paid by Latvia's microenterprises.