Payroll tax book (algas nodokļa grāmatiņa)
In Latvian: Algas nodokļa grāmatiņa
The payroll tax book (algas nodokļa grāmatiņa) is a record issued by VID that tells an employer to apply the employee's non-taxable minimum and tax reliefs at that workplace. Each resident can have only one, filed at a single place of income of their choice.
Where the tax book is filed, the employer deducts the non-taxable minimum (EUR 550 a month in 2026) and reliefs such as EUR 250 per dependant before charging 25.5% IIN. Other employers apply none of these deductions.
The tax book is managed in the VID Electronic Declaration System (EDS), where it can also be withdrawn from the main place of income. VID enters dependants into the book based on the documents the taxpayer submits and on state register data.
If the tax book was not filed anywhere, the unused non-taxable minimum for the year can be recovered by filing the annual income tax return.
Example
Līga has two jobs: SIA "Ozols" pays her EUR 1,200 and SIA "Liepa" EUR 400. She files her tax book with SIA "Ozols", which applies the EUR 550 non-taxable minimum. SIA "Liepa" charges IIN on the whole amount after VSAOI: (400 − 42) × 25.5% = EUR 91.29.
Legal basis
- Law on Personal Income Tax, Section 6 likumi.lv
- Law on Personal Income Tax, Section 17 likumi.lv
- Law on Personal Income Tax, Section 13 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.