VOLUNTARY ANNUAL PERSONAL INCOME TAX RETURN
For most residents, the voluntary return allows them to receive a tax refund for eligible expenses for themselves and their family members. If in any year you forgot to declare receipts, invoices or payment orders, you can still take advantage of this opportunity, because the return can be submitted for the previous three years. The annual personal income tax return in the SRS EDS for 2025 can be submitted from 1 March 2026 until 23 June 2029. Meanwhile, the annual PIT return for 2022 can still be submitted until 23 June 2026. It should be remembered that from 1 January this year, logging into the SRS EDS is only possible using secure identification methods.
TAX REFUND
Any person whose PIT has been withheld from their income can recover 25.5% (for 2023 and 2024 - 20%) from:
- Expenses for education, medical services, donations and gifts, if the total amount of these expenses does not exceed 50% of annual income but no more than 600 EUR per year;
- Contributions to private pension funds and life insurance premiums (with savings accumulation), if the total amount of these contributions does not exceed 10% of annual income but no more than 4,000 EUR per year;
- Eligible expenses of a family member for education and medical services, if the total amount of these expenses does not exceed 600 EUR per year for each family member.
The annual PIT return may include all eligible expenses for the specific year (except donations and gifts), even if their total exceeds the 600 EUR threshold, because the part exceeding 600 EUR will automatically be transferred to the next three years in chronological order.
It should be noted that donations and gifts are deducted first. If this amount is less than 600 EUR, the amount of eligible expenses for education and medical services is also included, so that the total eligible expenses do not exceed the 600 EUR threshold.
The tax is refunded within three months from the day the return is submitted, depending on the amount of information that must be checked.
The eligible expense threshold was last increased in 2017. In January, 10,000 signatures were collected on the public initiative platform Manabalss.lv calling for an increase in eligible expenses in the annual PIT return, which would allow this initiative to be submitted for consideration in the Saeima.
ELIGIBLE EXPENSES
Eligible expenses are payments for which the state allows the taxable income to be reduced. They are strictly defined in regulatory enactments.
Medicine and healthcare
The return may include expenses for:
- Medical and healthcare services received at a medical institution;
- Purchase of a health insurance policy;
- Purchase of medical aids, medical devices and goods used during the provision of healthcare services, which are not paid for from the funds of the National Health Service (NHS);
- Dentistry and dental prosthetics;
- Follicular puncture;
- Manufacture and purchase of prostheses connected to the human body, if they have not been paid for from NHS funds or funds of other persons;
- Vaccination.
Eligible expenses may include only expenses for services provided by a person registered in the medical practitioners register with a medical practitioner certificate. Expenses must be supported by payment documents or e-receipts. Most medical institutions offer the option to receive an e-receipt, thus automatically submitting the data to the SRS, which will later appear in the annual PIT return. In that case, the person does not need to submit supporting payment documents.
If a person has a health insurance policy, eligible expenses do not include expenses paid by the insurer.
Education and professional development
The return may include expenses for:
- Obtaining higher education, vocational education and a specialty;
- Training to acquire and improve skills necessary for work, profession, position or trade;
- Raising the level of professional preparedness;
- Learning the Latvian language;
- Children’s interest education (in registered institutions) up to the age of 18.
Education expenses must be related to officially recognized educational institutions in Latvia or other EU and EEA countries. When declaring expenses for education and obtaining a specialty, it is not necessary to submit supporting documents for the payments mentioned if the educational institution has concluded an agreement with the SRS for sending information electronically and has sent the necessary information.
When declaring expenses for expanding knowledge needed for work, when submitting the tax return, a relevant statement from the employer must be attached confirming that the acquired skills are necessary for performing job duties. Eligible expenses do not include expenses paid by the employer.
The full list of education and healthcare expenses that may be included as eligible expenses and the application procedure can be found in Cabinet Regulation No. 336 here.
Donations and gifts
The return may include expenses for:
- Budget institutions;
- Public benefit organizations;
- Political parties.
Donations and gifts are deducted before other eligible expenses. The amount of donations and gifts is not transferred to the following years if the 600 EUR threshold is exceeded.
Eligible expenses do not include donations and gifts made by family members, including to political parties.
Donations and gifts cannot be included as eligible expenses if the purpose of the donation includes a direct or indirect indication that the donation is received by a specific person who is related to the donor.
Pension savings and life insurance
The return may include expenses for:
- Contributions to private pension funds;
- Life insurance premiums with savings.
Payments may be made in Latvia or in other EU member states or EEA countries or in private pension funds and insurance companies registered in member states of the OECD. If contributions are made to pension funds registered in Latvia, this will automatically be included in the tax return.
Life insurance (with savings accumulation) premiums may be included in eligible expenses if the term of the life insurance contract, concluded starting from 1 January 2018, is not shorter than 10 years. If the life insurance contract is terminated early before reaching the 10-year term, the paid premium payments cannot be included in eligible expenses for all years of the contract’s validity.
These expenses also cannot be declared for family members.
The voluntary annual personal income tax return is a practical financial tool that allows you to recover part of the taxes already paid in everyday life. By collecting supporting documents already now, you will be ready to submit the annual personal income tax return as early as 1 March! Regular filing helps manage personal finances better and ensures you do not miss the opportunity to receive the tax refund provided for by law.
