Amendments to the Law On the Vehicle Operation Tax and Company Car Tax

The amendments to the Law On the Vehicle Operation Tax and Company Car Tax are being prepared for the third Parliamentary reading. They include a number of clarifications in the tax administration and the application of tax relief, including a new provision concerning the exemption of Company Car Tax.

The draft amendments stipulate that the Company Car Tax is not charged for an individual’s vehicle which is used on the basis of the lease contract and on which from the person when paying the rental fee, the personal income tax is being withheld in accordance with the procedure of the law “On Personal Income Tax”.

If you are interested in the news of tax, employment and other business-related legislation in Estonia and Lithuania, please visit Estonian news and Lithuanian news

Recent Posts

Non-business expenses for Corporate Income Tax (CIT) - Leinonen Latvia
July 9, 2026

Non-business expenses for Corporate Income Tax (CIT) – what companies need to know

Since 2018, the Latvian corporate income tax (CIT) system has been significantly simplified – tax is payable when profits are distributed or when certain non-business-related…

Continue reading
Employee Benefits: What Can Be Offered to Employees Beyond Salary in 2026 - Leinonen Latvia
July 8, 2026

Employee Benefits: What Can Be Offered to Employees Beyond Salary in 2026

By 2026, a competitive salary alone is no longer sufficient to attract and retain good qualified employees. A well-structured employee benefits system has become an…

Continue reading
Latvian eID Card - Leinonen
May 25, 2026

Latvian Foreigner’s eID Card: A Complete Guide for International Businesses (2026)

For any foreign national running a business in Latvia, signing documents with Latvian counterparties, or submitting tax returns through the State Revenue Service, accessing Latvia’s…

Continue reading