Salary tax books in Latvia
On 3 January 2012 the Cabinet of Ministers issued new provisions on salary tax books. These requirements of the Cabinet of Ministers are coordinated with the latest amendments to the Law on the Personal Income Tax in order to ensure the registration of taxpayers, the control of personal income tax payments and the correct application of the non-taxable minimum and tax relief.
As of 2012 salary tax books are issued only by the State Revenue Service and for each taxpayer they are provided with a unique (registration) number. When a salary tax book is issued, the date of issue and registration number, as well as the name, surname and personal identification number of the taxpayer is indicated. If a previously issued salary tax book has been lost or damaged, the State Revenue Service upon a written application by the taxpayer issues a new salary tax book. A notation Copy is included on the cover and front page of such salary tax book. The fee for issuance of a salary tax book is EUR 14.
Salary tax book limits
There is no time limit for the validity of a salary tax book.
Information included in the salary tax book and registration of changes
The salary tax book plays practical importance and the following notations on the non-taxable minimum and tax reliefs are included:
- information on dependent persons;
- the person's disability status;
- the status of a politically repressed person;
- the status of a member of the national resistance movement.
Furthermore, the information on the pension or the loss of pension rights is included in the salary tax book. If a person has lost pension rights and the salary tax book has been submitted to the State Social Insurance Agency (SSIA), the date on which these rights were lost is indicated by the SSIA and upon a request the salary tax book with this notation is issued to the taxpayer.
If the rights of the taxpayer to receive the non-taxable minimum and tax relief have changed, the taxpayer submits a corresponding notification of such changes to the State Revenue Service (SRS). After the verification of documents submitted and specified by the taxpayer the SRS includes a corresponding notation in the salary tax book or issues a notification of the changes in rights of the taxpayer to receive tax relief. On the basis of notification issued by the SRS on the changes in rights to receive tax relief, the employer or other institution, in which the salary tax book is submitted, includes the corresponding notation.
Keeping of salary tax books and inclusion of notices
In order to receive the non-taxable minimum and tax relief, on the first day of the commencement of work relationships the taxpayer submits the salary tax book to the place of the primary employment, or before the income is obtained - to a different place of employment, which he or she considers as the main income source (including royalties), but which is not related to the economic activity of the taxpayer.
Taxpayers in Latvia, who commence the economic activity and are not employed by an employer, do not have to submit the salary tax book with the State Revenue Service, but they must have one in their possession. However, the SRS will ensure that the non-taxable minimum of the personal income tax will not be applied to both the income of the economic activity and the income from paid employment at the same time, as the same tax relief cannot be received from two income sources.
If an employee of a micro-enterprise has been employed by several micro-enterprise taxpayers, the salary tax book must be submitted to one of the micro-enterprises and a written notice on the submission of the book to this enterprise must be provided to the rest. The micro-enterprise taxpayers deem such notice as a verification of the reason why the salary tax book of the corresponding employee has not been submitted in the corresponding enterprise. If the employee is employed in a regular company and in a micro-enterprise, which pays the micro-enterprise tax, the salary tax book has to be submitted to the micro-enterprise.
The employer ensures the registration and keeping of submitted salary tax books.
After the termination of employment relationships or period in which the income was obtained, the employer or another institution includes a corresponding notation and returns the tax book to the taxpayer.