As of early June this year, the total amount of tax debts in Latvia – including current debts, suspended debts, and payment extensions – stood at 825.875 million euros, which is 2.3% less than the previous month and 2.2% less than at the beginning of the year, according to data from the State Revenue Service (SRS).
Among these, debts to the state basic budget as of the 1st of June 2025, amounted to 338.202 million euros, down 3.3% from the previous month. Debts to municipal budgets totaled 294.999 million euros, a decrease of 1.3%, while debts for social insurance contributions were 192.674 million euros, representing a 2.2% decline.
CURRENT DEBTS ACCRUING LATE PAYMENT PENALTIES ACCOUNTED FOR 62% OF THE TOTAL DEBT AMOUNT AS OF THE 1ST OF JUNE THIS YEAR – OR 511.626 MILLION EUROS.
The SRS data also shows that as of the 1st of June debts totaling 1.415 million euros had been classified as uncollectible – these had been incurred by companies undergoing liquidation before the completion of the liquidation process.
Meanwhile, in accordance with regulations, as of early June this year, debts totaling 510.211 million euros were considered collectable. Of these, debts deemed actually collectable amounted to 219.84 million euros, while 290.371 million euros were classified as not realistically collectable. Of the latter amount, 290.313 million euros are owed by debtors with no financial means or assets for recovery, while 57 400 euros worth of debts have become time-barred due to the expiration of the enforcement period.
As of the 1st of June this year, payment extensions had been granted for debts totaling 107.313 million euros, which is 11.2% more than at the beginning of the year.
Meanwhile, the sum of suspended debts – those for which late payment penalties are no longer calculated – stood at 206.936 million euros at the start of June this year. These debts are held by companies that have been declared insolvent.
On the 1st of January 2025, Latvia’s total tax debts amounted to 844.276 million euros.