WHEN ARE YOU EXEMPT FROM PAYING COMPANY CAR TAX!?

15 simple reminders regarding CCT and when you can avoid paying it:

#1
for emergency vehicles (or a vehicle registered as an emergency vehicle)

#2
for vehicles owned or held by a person authorized by a vehicle manufacturer, which are used as demonstration vehicles and which the merchant or the branch of a foreign merchant has declared in the national register of drivers (the register)

#3
for owned or held vehicles intended for short-term (up to one year) rental, which the merchant or the branch of a foreign merchant has declared in the register, if the merchant’s or the foreign merchant’s branch’s vehicle rental services together with vehicle sales constitute at least 90% of the total turnover

#4
for a vehicle that the taxpayer uses only and exclusively for the needs of their economic activity

#5
a taxpayer, if they process agricultural land that is owned, in permanent use, or leased, and as of January 1 of the current year has been approved for receiving the single area payment from the Rural Support Service, subject to the following conditions:

if one passenger vehicle is registered in the ownership or possession of this taxpayer, the tax for this one vehicle is not paid if the taxpayer’s income from agricultural production in the last submitted corporate annual report or the last submitted annual income tax return is at least 5,000 euros (excluding received state and European Union (EU) support for agriculture and rural development),
if several passenger vehicles are registered in the ownership or possession of this taxpayer, the tax for one of these vehicles is not paid if the taxpayer’s income from agricultural production in the last submitted corporate annual report or the last submitted annual income tax return is at least 5,000 euros (excluding received state and EU support for agriculture and rural development), and the tax for each subsequent vehicle is not paid for every 70,000 euros of income from agricultural production in the last submitted corporate annual report or the last submitted annual income tax return (excluding received state and EU support for agriculture and rural development)

#6
for the period when the vehicle was not at the disposal of the taxpayer as a result of a criminal offense, as evidenced by documents issued by the person in charge of the proceedings or a foreign competent authority, or information in the register regarding the vehicle

#7
for the period when the vehicle has been seized in cases provided for by regulatory enactments and its use in road traffic has been prohibited

#8
for the period when the vehicle is removed from the register for alienation in Latvia or for export from Latvia, or the registration of the vehicle is temporarily suspended by surrendering the license plates

#9
for a vehicle that has a registered historic vehicle status

The exemption does not apply to a vehicle that has the note “Ancient Vehicle” in the “Notes” section of the registration certificate. Meanwhile, historic vehicles are recognized as carefully preserved cars at least 30 years old that are not used as daily transport.

#10
for a passenger vehicle that is a sports vehicle or is registered as a sports vehicle (there is a note “Sports” in the “Notes” section of the registration certificate)

#11
for the period when a vehicle registered in Latvia has been exported from Latvia and registered abroad.
The fact that the vehicle was registered abroad is evidenced by information in the register of the respective foreign country (if CSDD has automated access to the respective register) or a document issued by the vehicle register of the respective foreign country

#12
for a vehicle that the owner’s insolvency administrator removes from the register for alienation in Latvia or for export from Latvia, or a vehicle whose registration is temporarily suspended by surrendering the license plates

#13
for a vehicle used on the basis of a lease agreement concluded with a natural person, and for which personal income tax is withheld for this natural person when paying the lease for the vehicle, in accordance with the procedure established in the law “On Personal Income Tax” (PIT Law)

#14
for a vehicle used on the basis of a lease agreement concluded with a natural person who is registered with the SRS as a performer of economic activity and independently calculates and pays personal income tax from the vehicle lease payment in accordance with the procedure established in the PIT Law

#15
The taxpayer has the right to change the tax application procedure once per taxation period – by declaring an exemption or stating that the tax exemption will no longer be applied

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