RIGA - At the beginning of January 2018, tax debts in Latvia totaled EUR 1.217 billion, down 3 percent from December 2017, according to the information released by the State Revenue Service (VID).
This total includes current and suspended debts as well as debts with extended payment deadlines.
Tax debts to the central government basic budget stood at EUR 749.818 million, down 3.8 percent month-on-month, tax debts to local government budgets came to EUR 310.954 million, down 1.5 percent, while overdue social security contributions equaled EUR 156.195 million, down 2.1 percent.
As at January 1, 2018, current debts on which fines for late payment are being calculated made up 63.2 percent of the total amount or EUR 768.658 million.
Uncollectible debts of the companies under liquidation stood at EUR 9.224 million.
Debts deemed collectible were worth EUR 759.434 million in early January this year, including EUR 161.336 million declared actually collectible, and EUR 598.097 million declared actually uncollectible. Out of the actually uncollectible debts, the debtors owing EUR 595.984 million do not have any money or property, while in cases of debts worth EUR 2.114 million the statute of limitation has set in.
As at January 1, 2018, the deadline for payment of the debt had been extended for tax debts totaling EUR 113.392 million.
The amount of suspended debts, on which fines for late payment are no longer being calculated, stood at EUR 334.918 million at the beginning of January this year, with the majority of these debts accumulated by companies that have been declared insolvent.
In early December 2017, the total tax debt in Latvia stood at EUR 1.254 billion.