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Company car tax

  1. General information
  2. Payment options
  3. Monthly rates
  1. Tax exemptions
  2. Declaration of tax exemption
  3. Tax refund

General information

According to the Law on the Vehicle Operating Tax and Company Car Tax, company car tax is paid on a merchant or a branch of a foreign merchant, or a farm, registered or owned or used based on an employment contract, or borrowed from a person who is not a merchant:

  1. a passenger car which, by its construction and internal equipment, is intended for the carriage of passengers and their luggage, in which the number of seats, excluding the driver's seat, does not exceed eight and which is registered in the register as a passenger car, passenger car or light utility vehicle;
  2. a commercial vehicle with a maximum mass not exceeding 3000 kg, registered as a cargo vehicle and having more than 3 seats (including the driver's seat).

The tax is paid for the relevant period, for the months of the tax year, from the beginning of the tax period in which the vehicles are owned or held by the taxable person.

Before the roadworthiness test (also in the case of a repeated roadworthiness test), the tax shall be paid for the months from the beginning of the current calendar year or the month from which the vehicle is registered in the taxpayer's possession until the roadworthiness test, including the month in which the roadworthiness test has been performed.

When registering a car for the first time in Latvia, the tax must be paid for one month, but the remaining part of the tax for the calendar year will have to be paid in the next year together with the part of the tax for the next year before the roadworthiness test.

If a change of owner or holder of a vehicle is registered during the taxation period or the vehicle is removed from the register for alienation or export from Latvia, or the registration of the vehicle is temporarily suspended by transferring number plates, the taxpayer pays company car tax for previous taxation periods , if it has not been paid, and for the period up to the performance of those activities in the relevant tax period, including the month in which those activities are performed.

The CSDD shall not perform a state roadworthiness test  of a vehicle, registration of change of owner or holder, registration of vehicle conversion, re-registration of a deregistered vehicle, as well as removal of a vehicle from the register for alienation or export from Latvia or suspension of vehicle registration by transferring number plates, if according to the Law company car tax has not been paid for the relevant vehicle for the previous taxation period and for the period until the performance of the said activities in the taxation period, including the month in which these activities are performed.

The tax is transferred to the state budget.

Frequently asked questions about Company Passenger Car Tax : https://www.vid.gov.lv/lv/buj?field_kategorija_tid=316