Minister of Finance Arvils Ašeradens has ordered Ministry of Finance and the State Revenue Service (VID) adopt as standing measure the condition that no advance payments of PIT are provided to self-employed persons, according to the minister’s announcement on Twitter.
Ašeradens said «cancelling PIT advance payment for the self-employed was a logical measure to reduce economic consequences caused by the pandemic. This measure very quickly proved its longevity».
The minister said this measure should remain as part of legislation that governs PIT. At the same time, he adds that
«in reality the rate at which certain regulations have been progressing has not been satisfactory so far. The communication with VID about our intentions to abolish the obligation to pay an advance of PIT for self-employed persons has not been effective so far».
«I have ordered specialists of the Ministry of Finance to immediately take measures in order to ensure progress of all necessary legislative acts, as well as find solutions with VID for efficient and clear communication with taxpayers,» said Ašeradens.
As previously reported, in 2020, following the state of emergency in Latvia and elsewhere in the world, as well as the drop in economic activity caused by this, amendments were added to legislative acts. These amendments permitted PIT payers performing economic activities to not pay PIT advance payments. Additionally, they were charged no penalty for this. Permission to not make PIT advance payments for self-employed persons remained in force in 2021 and 2022.
This week, however, VID announced that after a two-year break self-employed persons have to start making PIT advance payments again.
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