Latvia: Investment Income Tax Guide

This section outlines the tax treatment and reporting obligations for Latvian tax residents investing in Mintos assets. This summary is for informational purposes only and does not constitute legal or tax advice. For personalized guidance, contact the Latvian State Revenue Service (VID) or a certified tax consultant. Please note that the WHT tax is deducted and transferred to VID as interest received, and data should be available as you prepare your personal income tax return.

📌 General Principles

1. Tax Type: Investment income is taxed at a flat rate of 25.5% in Latvia for private individuals. Companies pay 0% tax on reinvested profit and 20% on distributed profit.
2. Withholding Tax (WHT):
   • Applied to individual investors investing in regulated assets - Loans: Notes backed by loans, Bonds: Notes backed by bonds, Real Estate: Notes backed by real estate.
   • Not applied to Claims, Direct Bonds, ETFs, and Smart Cash.
3. Latvian Reporting:
   • Income must be declared via the “Gada ienākumu deklarācija” (Annual Income Declaration).
   • Depending on the type of income, use Annex D1, D2, or D4.
4. Tax Authority and Submission:
   • Paper filing deadline: May 1
   • Electronic filing (EDS): June 1 (or July 1 if income exceeds threshold)
   • More info: https://www.vid.gov.lv/en

📦 Mintos Asset-Specific Tax Overview

💼 Tax Filing Notes

1. Interest Income Categories:
   • Kapitāla ienākumi: Interest
   • Kapitāla pieaugums: Capital Gains
   • Ārvalstī gūtie ienākumi: Foreign income
      
2. Losses and Write-Offs:
   • Losses cannot be offset unless you file as self-employed.
   • Unreported if no income is realized from the asset.
      
3. Withholding Tax Reporting:
   • Use the Mintos Tax Report to declare gross income and withheld tax (if any).
   • Withheld tax should be credited in the declaration where applicable.

✅ Tips for Latvian Investors

1. Track Withheld Tax: Check your Mintos tax report annually for WHT totals and gross income.
2. Correct Annex Usage: Match product type with the correct tax form (D1/D2/D4).
3. Declare All Income: Even if WHT is applied, reporting remains necessary.
4. Understand Product Nature: Especially for Loans (backed by claims), Direct Bonds, Smart Cash, and ETFs, where treatment can vary.

✅Information for High Earners (Income > €200,000)

If your total annual income exceeds €200,000, you are subject to a new "solidarity" tax surcharge introduced by the Latvian government for 2025.

1.  The 3% Additional Rate
A 3% additional tax applies to any portion of your annual income that exceeds the €200,000 threshold. This is calculated on your total aggregate income, including:

• Employment income (salaries, bonuses)
• Capital income (including interest from Mintos)
• Capital gains (sale of assets, real estate)
• Dividends (even if otherwise tax-exempt)
  

2. How this affects your Mintos earnings
Income earned on Mintos is classified as "Income from Capital" and is included in this total calculation.

• No Automatic Withholding: Mintos does not withhold this 3% surcharge. We only withhold the standard base tax (25.5%).
• Manual Payment: Because Mintos does not have visibility into your total income from other sources (e.g., your salary or property sales), we cannot calculate if you have crossed the €200k threshold.
  

3. Action Required
You must assess your total income across all sources at the end of the year. If the sum exceeds €200,000, you are responsible for declaring and paying the additional 3% on the excess amount via your Annual Income Declaration (submitted to VID starting in 2026).
 

Disclaimer: This summary is for informational purposes only and does not constitute legal or tax advice. For personalized guidance, contact the Latvian State Revenue Service (VID) or a certified tax consultant.