Quarterly Reporting Deadlines for Self-Employed in Latvia

Self-employed individuals in Latvia do not have the luxury of an employer withholding taxes from each paycheck. Instead, they must estimate their annual income and make quarterly advance IIN (personal income tax) payments themselves. Get this wrong — either by underpaying or by missing a deadline — and VID adds interest charges that eat directly into your margins.

The four quarterly deadlines follow a consistent pattern: the 15th of the month following each quarter's end.

The Four Deadlines

| Quarter | Period | Payment Due | |---------|--------|-------------| | Q1 | January – March | April 15 | | Q2 | April – June | July 15 | | Q3 | July – September | October 15 | | Q4 | October – December | January 15 (following year) |

Each payment represents roughly one-quarter of your estimated annual IIN liability. VID may issue a pre-calculated advance payment schedule based on your prior-year income, or you can calculate your own based on projected earnings.

How to Calculate Your Advance Payment

The IIN rate for self-employed income is 25.5% on annual income up to EUR 105,300 (with higher rates on amounts above that threshold — a situation most self-employed individuals do not face).

Before applying IIN, you deduct your VSAOI contributions and any eligible business expenses. The net taxable income is what the 25.5% rate applies to.

A practical example: if you project EUR 40,000 in annual self-employed income after expenses and VSAOI, your annual IIN is approximately EUR 10,200. Each quarterly advance payment would be around EUR 2,550.

If your income fluctuates significantly — common for consultants and seasonal businesses — adjust your quarterly payments accordingly. VID does not penalize you for paying more in Q3 and less in Q1, as long as the total annual amount is correct. Underpayment for the year triggers interest charges retroactively.

Missing a Deadline

Late payment interest is 0.05% per day on the unpaid amount. On a EUR 2,000 quarterly payment, that is EUR 1 per day. Not dramatic, but over 60 days it becomes EUR 60 — money that could have stayed in your business.

VID sends reminders through EDS, but only if you have set up notifications. Check your EDS message inbox regularly, or — even better — put the four dates into your calendar right now.

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Focus on Your Work, Not Your Advance Payments

Estimating quarterly income, adjusting projections mid-year, and ensuring your IIN advances match your actual liability -- these are the administrative tasks that distract from the work that earns you money. We manage the entire quarterly cycle for self-employed clients.

Hand off your quarterly IIN obligations →