SRS Penalties and Late Interest in Latvia 2026 — What You Need to Know
Overdue tax payments create two additional financial obligations: late payment interest (accrues daily) and penalties (fixed or percentage of the violation amount).
Late Payment Interest — 0.05% per Day
For each overdue day, SRS charges 0.05% per day of the overdue tax amount (approximately 18.25% per year). Interest starts the day after the payment deadline and stops on the day of full payment.
- 1 day overdue on €1,000 = €0.50 interest
- 30 days overdue on €1,000 = €15.00 interest
- 365 days overdue on €1,000 = €182.50 interest
Penalties — Three Scenarios
1. Late payment (no declaration violation): Only late interest — if the return was filed on time and the amount was correct, but not paid.
2. Late return filing: Penalty 1% of the calculated tax, minimum €71.14, maximum €711.44 per late month.
3. SRS audit finding: Penalty may be 5–30% depending on severity and whether it is a repeat violation.
Voluntary Correction — Reduces Penalty by 50%
If a taxpayer discovers an error and before SRS starts an audit files a corrected return and pays, the penalty is reduced by 50%. Act immediately — don't wait for SRS.