Latvia Introducing Tax Compliance Rating System to Promote Voluntary Compliance

Latvia has passed a new law that introduces a tax compliance rating system for companies, foreign branches, and individual enterprises.
The system will assess taxpayers’ compliance with tax obligations based on registration data, tax declarations and reports, tax performance, tax and customs administration measures, salary assessment, and tax declaration risks.
The rating system aims to encourage voluntary compliance and will be publicly available starting from 1 January 2024.