Tax debts in Latvia reach 858 million euros

At the beginning of November this year, total tax debts in Latvia, including current, suspended and extended debts, amounted to 858.006 million euros, which is 0.5% more than a month earlier, but 0.5% less than at the beginning of the year, according to data from the State Revenue Service (SRS).

Among them, on the 1st of November 2024, debts to the general state budget amounted to 368.615 million euro, 1.2% less than at the beginning of October, debts to local government budgets amounted to 305.531 million euro, 1.9% more than a month earlier, and social security debts amounted to 183.86 million euro, up 1.5%.

Current debts that are subject to late payment penalties accounted for 61.6% of the total, or 528.808 million euros, on the 1st of November this year.

SRS data also show that 2.639 million euros of debts were recognised as uncollectible on the 1st of November this year – these debts were incurred by companies in liquidation until the liquidation procedure was completed.

At the beginning of November this year 526.168 million euro of debts were considered recoverable under the legislation, including 235.703 million euro of debts that were actually recoverable and 290.466 million euro of debts that were not actually recoverable. Of the debts declared not recoverable, 290.417 million euros were for debtors with no cash or assets to enforce their recovery, while debts of 48 200 euros were time-barred.

As of the 1st of November, this year, a total of 98.686 million euro of debt had been granted extensions, 5% more than at the beginning of the year.

However, the suspended debts for which the calculation of late payment penalties was suspended at the beginning of November amounted to 230.513 million euro – this amount was made up of debts owed by companies declared insolvent.

On the 1st of January 2024, total tax debts in Latvia amounted to 862.329 million euro.