The draft regulation was developed on the basis of the Law “Amendments to the Law “On Taxes and Fees”” adopted by the Saeima on 17 December 2014 (entered into force on 1 January 2015). Law Amendments stipulate the additional obligation to the taxpayer, which provides leasing and lending services (except credit institutions), once a year until the 1st of February to submit to the Latvian State Revenue Service the informative report on individual’s - a resident of the Republic of Latvia - lease and/or loan and the related interest payments, the sum of which exceeds EUR 360 per month or a total amount of such contributions during a calendar year exceed EUR 4320.
Starting from 1 January 2016, lessor or lender should submit the informative report once a year every year until the 1st of February. Thus, for the first time the report should be submitted for the year 2015 until the 1st of February 2016.
When filling in the information about the individual, one should specify the personal data of the person that actually performs the leasing/loan payment without taking into account that it is not the lessee/borrower. Hence, if the lessee’s loan repayment will be carried out by a third party, the content of the report will require to provide the information about the third party who carried out the payment.
Amendments to the Law were developed to take measures in
order to reduce the shadow economy and tax evasion, i.e. for the tax administration
to make sure that an individual's expenses related to the loan or lease
payments, do not exceed the individual’s declared income.
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