Latvia Tax Debt: 829 Million Euros at December Start
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latvia’s Tax Debt Reaches €844.276 Million, wiht Meaningful Uncollectible Amounts
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As of January 1, 2025, total tax debts in Latvia amounted to €844.276 million, according to recent data. A substantial portion of this debt is considered uncollectible, with over €299 million attributed to debtors lacking assets or facing expired collection statutes.
Updated January 5, 2026, 07:28:47
Key Findings: Tax debt in Latvia
as of December 1, 2024, debts totaling €299.085 million were recognized as truly uncollectible. The vast majority of this uncollectible debt – €299.034 million – stems from situations where debtors possess neither money nor property that can be seized for collection. A smaller portion, €51,400, is uncollectible due to the expiration of the collection statute of limitations.
The State Revenue Service of Latvia granted repayment term extensions to debts totaling €73.027 million on December 1,2024. This represents a 24.3% decrease in the amount of debt under extension compared to the beginning of the year.
Furthermore, €214.073 million in debts were suspended as of the beginning of December 2024, because the calculation of late fees was stopped for debts owed by companies recognized as insolvent.
Breakdown of Uncollectible Debt
The high proportion of uncollectible debt due to a lack of debtor assets highlights the challenges faced by latvian tax authorities in recovering funds. The expiration of the collection statute on a smaller amount (€51,400) indicates that time limitations also play a role in preventing full debt recovery.
| Category | Amount (EUR) |
|---|---|
| No Assets | 299,034,000 |
| Statute Expired | 51,400 |
| Total Uncollectible | 299,085,000 |
Impact of Repayment extensions and Suspended Debt
The decrease in repayment term extensions suggests a potential advancement in debtors’ financial situations or a more stringent approach to granting extensions. However, the substantial amount of suspended debt (€214.073 million) linked to insolvent companies underscores the economic difficulties faced by Latvian businesses and their impact on tax revenue.