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IN WHICH CASES ARE YOU EXEMPTED FROM PAYING TAX ON A COMPANY-OWNED VEHICLE !?

1

For emergency vehicles (or a vehicle registered as an emergency vehicle)

2

For vehicles owned or held by a person authorised by the vehicle manufacturer, which are used as demonstration vehicles and which have been declared by the merchant or a branch of a foreign merchant in the State Register of Drivers (hereinafter – the Register)

3

For vehicles owned or held for short-term (up to one year) lease, which the merchant or a branch of a foreign merchant has declared in the Register, if the merchant or the branch of the foreign merchant provides vehicle rental services together with vehicle sales not less than 90% of the total turnover

4

For a vehicle used exclusively by a taxable person for the purposes of its business

5

For a taxpayer, if it cultivates agricultural land owned, permanently used or leased and on 1 January of the current year has been approved for the receipt of a single area payment by the Rural Support Service, observing the following conditions:

If one passenger vehicle is registered or owned by that taxable person, the tax on that single vehicle shall not be paid if the taxable person’s income from agricultural production in the last annual report or annual income tax return submitted is at least 5000 EUR (excluding national and European Union (EU) support for agriculture and rural development),
If several light vehicles are registered or owned by this taxpayer, the tax on one of these vehicles is not paid if the taxpayer’s income from agricultural production in the last submitted annual report or last submitted annual income tax return is at least 5000 EUR (excluding state and EU support received) agriculture and rural development) and no tax is paid on each of these vehicles for every 70,000 EUR of agricultural income in the last annual company report or annual income tax return (excluding national and EU support for agriculture and rural development)

6

For the time when the vehicle was not at the disposal of the taxable person as a result of a criminal offense, which is confirmed by documents issued by the person conducting the proceedings or a foreign competent authority or information in the register regarding the vehicle

7

For the time when the vehicle has been seized in the cases provided for in laws and regulations and its use in road traffic has been prohibited

8

For the time when the vehicle has been removed from the Register for alienation in Latvia or for export from Latvia or the registration of the vehicle has been temporarily suspended to issue the number plates

9

For a vehicle for which the status of a historic vehicle is registered.

The exemption does not apply to a vehicle marked “Old Vehicle” in the “Remarks” section of the Registration Certificate. Meanwhile, vehicles that are not at least 30 years old, carefully preserved vehicles that are not used as everyday vehicles are recognised as historic vehicles.

10

For a passenger car that is a sports vehicle or is registered as a sports vehicle (in the Registration Certificate in the section “Notes” there is a mark “Sports”)

11

For the time when the vehicle registered in Latvia was exported from Latvia and was registered abroad.
The fact that the vehicle has been registered abroad is confirmed by the information in the relevant foreign register (if the CSDD has automated access to the relevant register) or a document issued by the relevant foreign vehicle register.

12

For a vehicle which is removed from the Register by the insolvency administrator of the vehicle owner for alienation in Latvia or export from Latvia, or a vehicle the registration of which is temporarily suspended for issuing the number plates.

13

For a vehicle which is used on the basis of a lease agreement entered into with a natural person and for which that natural person is subject to personal income tax when paying rent for the vehicle in accordance with the procedures specified in the Law on Personal Income Tax (PIT Law)

14

For a vehicle used on the basis of a lease agreement entered into with a natural person registered with the SRS as a performer of economic activity and who independently summarises and pays personal income tax from the rent for the vehicle in accordance with the procedure specified in the PIT Law.

15

The taxpayer has the right to change the procedure for application of the tax once during the taxation period – by declaring the relief or the fact that the relief from payment of the tax will no longer be applied

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