In the second and final reading Latvia’s Saeima passed amendments to the Law on the Suppression of Consequences of the Spread of Covid-19 Infection. These amendments let municipalities extend the real estate tax payment period for residents for the duration of 2022.
Previously similar regulation was in place in 2020 and 2021.
The parliament’s Budget and Finance Committee’s proposed and Saeima’s passed law states municipalities have the right in 2022 to set real estate tax payment terms that are different to the terms detailed in the law.
No penalty will be calculated for missing payments of real estate tax this year as long as the payment is eventually made by 31 December.
If the tax payment is not done by the end of 2022, a fine will be calculated starting with 1 January 2023 in accordance with amounts detailed in the Law on Immovable Property Tax.
The annotation to the law amendments detail that the rights provided to municipalities allow for extending the tax payment terms to no later than 31 March, 15 May, 15 August and 15 November.
The budget committee adds that 2022 started off with multiple economic and financial shocks. The energy crisis, coupled with the economic crisis caused by Covid-19 pandemic, have created major risks for the solvency of residents and enterprises. This is why it is important to look for more effective support mechanisms for taxpayers.
Latvian municipalities allowed to let residents pay real estate tax at a later date
