Latvia
Introducing the SRS Taxpayer Rating System, Now Available to All Enterprises
Last year, the State Revenue Service Republic of Latvia (SRS) introduced a Taxpayer Rating System that enterprises could access in their Electronic Declaration System (EDS) profile. This system was further improved on March 1 with the introduction of a letter rating system for all enterprises, which is now available in the SRS public database.
Rating indicators are determined by registration data, timely submission of declarations and reports, timely tax payments, accrued penalties, wage assessment and comparison with the average wage in the industry and region, and information indicating possible violations.
The rating system is part of a wider set of changes provided for by EU Recovery Fund reform measures and investment projects specifically designed to combat the shadow economy. Other important activities within the framework of these measures are significant improvements in SRS methodology for reducing undeclared wages, adapting to the situation resulting from COVID-19, and developing a business typology for more accurate risk assessment.
