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
- 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.
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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.
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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.
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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
| Asset Type | Income Type | WHT Applied | Latvian Tax Form(s) | Subject to declare |
| Loans (Claims) | Interest | ❌ No | D2 | Income taxed at 25.5%, declared manually |
| Loans (Notes backed by Loans) | Interest | ✅ Yes | D1 | WHT applied by Mintos, auto-imported |
| Bonds (Notes backed securities) | Interest | ✅ Yes | D1 | Declared automatically, WHT applied |
| Bonds (Direct Bonds) | Interest | ❌ No | D1 | Investor declares full gross income |
| Smart Cash | Interest | ❌ No | D1 | Treated as an interest-bearing instrument |
| Real Estate (Notes) | Interest | ✅ Yes | D1 or D2 | Depends on the income type |
| ETFs | Interest | ❌ No | D2 / D4 | Interest taxed at 25.5%, gains on sale |
💼 Tax Filing Notes
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Interest Income Categories:
- Kapitāla ienākumi: Interest
- Kapitāla pieaugums: Capital Gains
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Ārvalstī gūtie ienākumi: Foreign income
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Losses and Write-Offs:
- Losses cannot be offset unless you file as self-employed.
- Unreported if no income is realized from the asset.
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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
- Track Withheld Tax: Check your Mintos tax report annually for WHT totals and gross income.
- Correct Annex Usage: Match product type with the correct tax form (D1/D2/D4).
- Declare All Income: Even if WHT is applied, reporting remains necessary.
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Understand Product Nature: Especially for Loans (backed by claims), Direct Bonds, Smart Cash, and ETFs, where treatment can vary.
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.