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SRS Penalty & Late Interest
Calculator 2026 — Latvia

Calculate SRS late payment interest (0.05%/day) and penalties for overdue tax payments in Latvia. Enter the overdue amount and dates — the result appears instantly.

Late interest 0.05%/day Late filing €25–700 · audit 20%/30% Voluntary correction: no penalty
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Total amount owed to SRS
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Late payment interest
Overdue amount—
Days overdue—
Daily rate0.05 %
Total late interest—
Penalty
Penalty type—
Statutory penalty—
Reduction / basis—
Final penalty—
Summary
Principal tax—
Late interest—
Penalty—
Total due to SRS—
⚠️ Late interest has reached the maximum amount (40% of principal debt). Calculation stopped per LNN art. 29 s.7.
SRS Penalty and Late Interest Calculator Latvia 2026 — Balansis

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 (a fixed amount by length of delay, or a percentage of the undeclared tax).

Late Payment Interest — 0.05% per Day (max. 40% of principal)

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.

40% cap (LNN art. 29 s.7): Late payment interest calculation stops when the total interest reaches 2/5 (40%) of the principal debt. At 0.05%/day this cap is reached after exactly 800 days.

  • 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
  • 800 days overdue on €1,000 = €400.00 interest (cap reached — no further accrual)

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 (Law on Taxes and Duties, Article 141): a fixed penalty by length of delay (one penalty unit is €5): 3–10 days — a warning or €25–70; 11–20 days — €75–150; 21–30 days — €155–280; more than 30 days or not filed — €285–700. No fine is imposed if a monthly or quarterly EDS return was late only once, by up to 5 days, within 12 months.

3. Undeclared tax found in an audit (Article 32): penalty of 20% of the undeclared tax (shortfall up to 15% of the amount that should have been declared) or 30% (more than 15%); it is halved if the violation is not a repeat, deadlines were met and the taxpayer cooperates. In serious cases the penalty is 100%.

Voluntary Correction — No Penalty Before the Audit Notice

If you file a corrected return and pay before SRS has issued a notice of a tax audit or control, no penalty is imposed — you pay only the tax and late interest (Article 33², part 1). After the notice but before the audit starts, the penalty is 5% of the reduced tax amount (part 2). Act immediately — don't wait for SRS.

Frequently Asked Questions about SRS Penalties

Is there a maximum cap on late payment interest?
Yes. Per the Tax and Duty Law art. 29 s.7, late interest stops accruing once it reaches 40% (two-fifths) of the principal debt. At 0.05%/day this cap is reached after exactly 800 days. Example: €800 debt × 800 days = €320 interest = exactly 40% cap; at 900 days the interest remains €320 (capped, not €360).
Does late interest accrue automatically?
Yes. The SRS EDS system calculates late interest automatically from the day after the payment deadline. You can see it in your EDS account under "Tax debts". Interest stops on the day of full payment.
Can SRS waive the penalty?
If you file a corrected return and pay before SRS has issued a notice of a tax audit or control, no penalty is imposed (Article 33²). After the notice but before the audit starts the penalty is 5%. An audit penalty of 20%/30% is halved for a first, cooperative taxpayer who met the deadlines (Article 32).
How far back can SRS audit previous years?
SRS carries out a tax audit within 3 years of the statutory payment deadline; for transfer pricing and hybrid mismatch audits — within 5 years (Law on Taxes and Duties, Article 23).
What if I cannot pay the SRS debt immediately?
SRS can spread payments over up to 1 year (apply within 5 business days after the deadline; late interest 0.0125% a day), up to 5 years for amounts assessed in an audit, or grant a voluntary repayment schedule of up to 3 years (0.025% a day).
Can late payment interest be waived or reduced?
SRS generally cannot cancel automatically accrued late interest — it is a mandatory charge for each overdue day. However, SRS can spread payments (up to 1 year at a reduced 0.0125% a day; up to 3 years under a voluntary schedule at 0.025% a day), and in a settlement agreement part of the late interest can be cancelled. Early payment is the best strategy to minimise total costs.

Disclaimer — calculator results are indicative only

This calculator uses 2026 Latvia tax rates and provides an approximate result for informational purposes only. Results do not replace the professional advice of a certified accountant or tax consultant. Your individual situation (employment type, exemptions, international aspects, contract structure, etc.) may significantly affect actual tax amounts. Balansis (SIA Wonderstore) accepts no liability for decisions made solely on the basis of this tool.

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