Tax rebates

According to the Law “On Personal Income Tax” prior to imposing tax on income, the following expenditure of the payer shall be deducted from the amount of annual taxable income – amount which in the form of donation or gift has been transferred to a budget institution or association, foundation and religious organisation or the institution thereof registered in the Republic of Latvia, which have been granted public benefit organisation status,

The justified expenditures of a payer referred previously may not exceed 20 per cent of the magnitude of the taxable income of the payer.

Tax relief can be received if payer submits to the State Revenue Service of the Republic of Latvia following documents:

  • declaration, that indicates the amount of donation,
  • document, that approves that foundation has a public benefit organisation status,
  • document that approves the amount of donation (cash income order or payment order).

According to the Law “On Enterprise Income tax”, when legal entities donate to a foundations registered in the Republic of Latvia that have been granted Public Benefit Status according to the Public Benefit Organizations Law, the entities have the right to receive an income tax reduction. For legal entities, the income tax is decreased by 85 % from the amount of the donation. However, total reductions may not exceed 20% of the total amount of tax.

Tax relief can be received if payer submits to the State Revenue Service of the Republic of Latvia following documents:

  • declaration, that indicates the amount of donation,
  • document, that approves that foundation has a public benefit organisation status,
  • document that approves the amount of donation (cash income order or payment order).

For more information please visit https://www.vid.gov.lv/lv