Main tax changes coming into effect from 1 January 2016

Minimum wage
Minimum wage increased by EUR 10. Minimum wage by 1 January is EUR 370.

Relief for dependent persons
Relief for dependent persons increased by EUR 10. Relief is now EUR 175. Relief is no longer applied for the worker’s unemployed spouse and parents.
Implemented differentiated untaxed minimum

Workers with wages below EUR 1000 will have an increased untaxed minimum in 2016. The workers will be able to recover the difference between the applied untaxed minimum (EUR 75 per month) and the differentiated annual untaxed minimum applied for the wages in 2017 after submitting the income statement to the SRS. The annual untaxed minimum is applied to taxpayer once a year, upon submitting the annual income statement.

In 2016, the maximum annual untaxed minimum is EUR 1200 a year or EUR 100 a month. The amount of annual untaxed income to which maximum annual untaxed minimum is applied is EUR 4560 a year or EUR 380 a month. Only the minimum untaxed minimum is applied if the annual taxable revenue is EUR 12000 a year or EUR 1000 a month or more.

The procedure for calculating the differentiated untaxed minimum is set out in the Cabinet Regulation No. 1 of 05.01.2016 “Regulations for the Amount of Untaxed Minimum and Tax Relief for the Calculation of the Personal Income Tax.”

Solidarity tax
From 1 January 2016 to wages exceeding EUR 48 600 EUR the solidarity tax in the amount of 34.09% will be applied to the proportion exceeding EUR 48 600.

Personal income tax refund for child’s interest education
From 2016, the eligible personal income tax expenses may include child’s interest education. By submitting the SRS statement, the tax overpayment in the amount of 23% may be recovered in 2017.

By 1 January 2016, corporate light vehicle tax rates are increased

Lightweight vehicles first registered after the 01.01.2005 Corporate vehicle tax rates in force in 01.01.2015 Corporate vehicle tax in 01.01.2016
with engine volume up to 2000 cm3 27,03 29
with engine volume from 2001 to 2500 cm3 42,69 46
with engine volume exceeding 2500 cm3 56,91 62
Other lightweight vehicles 42,69 46
Electric vehicles 10 (currently applied as for other lightweight vehicles first registered until 01.01.2005)

By 1 January 2016, vehicle use tax rates are increased

Full mass (kg) 2015 2016
Up to 1500 17,07 36
From 10501 to 1800 34,15 72
From 1801 to 2100 64,03 138
From 2101 to 2600 76,84 165
From 2601 to 3500 102,45 219
From 3501 to 12000 145,13 156

Car maintenance inspection – more expensive
In 2016, the car maintenance inspection will be more expensive. The price for the car maintenance inspection is increased by EUR 3.61 for basic inspection and EUR 1.98 for repeated inspection.

Increased excise tax on fuel
From 1 January 2016, the excise tax rate on fuel is increased, which could push up the gasoline price by 0.03 EUR/l, but diesel fuel by 0.01 EUR/l.
Change in real estate tax payments

From 2016, the property tax rate in Riga will be decreased for families with children, but it will be increased for properties where no one is registered and for property owners, applying 1.5% rate.

From 1 July 2016 estate management expenses will be subject to 21% tax. Increased excise tax for alcoholic beverages and tobacco products.
From March 2016, the excise tax for alcoholic beverages will be increased, but from January 2016 the excise tax will be increased for smoking tobacco and tobacco leaves, as well as for liquids intended for use in electronic cigarettes.