By the beginning of June, the total tax debt in Latvia decreased to 814.3 million euros. Despite the reduction compared to the beginning of the year, a significant portion of the debts remains difficult or entirely uncollectible, according to data from the State Revenue Service (SRS).
As of June 1, 2026, the total tax debt in Latvia amounted to 814.278 million euros. Compared to May, its volume decreased by 2.4%, and compared to the beginning of the year — by 0.2%.
The total includes current tax debts, debts with extended payment terms, as well as suspended debts.
The largest portion of the debt is owed to the state basic budget — 343.26 million euros. Another 287.456 million euros are debts to municipal budgets, and 183.562 million euros are debts for mandatory social contributions.
In all three categories, a decrease in debt was recorded over the month.
However, the reduction in the total amount does not mean that all debts can realistically be collected. According to the State Revenue Service (SRS), of the 492.5 million euros of debt recognized as collectible, only about 196.7 million euros can actually be collected.
The remaining 295.8 million euros are considered practically uncollectible. The main reason is the lack of funds or property from the debtors that can be seized.
This essentially means that more than a third of all tax debts in the country exist only on paper, and recovering these funds for the budget is extremely difficult.
At the beginning of June, the current debts, for which penalty interest continues to accrue for overdue payments, amounted to 494.66 million euros, or 60.7% of the total debt.
At the same time, the volume of debts for which taxpayers have been granted deferrals continues to grow. By the beginning of June, the amount of such obligations reached 90.366 million euros, which is 36.8% more than at the beginning of the year.
The increase in deferred payments may indicate that some companies and entrepreneurs prefer to negotiate with the government for gradual debt repayment rather than allowing the situation to escalate to forced collection.
Additionally, as of the beginning of June, suspended debts amounted to 229.251 million euros. These are mainly obligations of enterprises recognized as insolvent, for which the accrual of penalty interest has been stopped.
Another 2.151 million euros have been recognized as hopeless for collection. This refers to the debts of liquidated enterprises that are ceasing their operations.
For comparison: at the beginning of 2026, the total tax debt in Latvia was 815.729 million euros. Thus, over the first five months of the year, the situation has changed slightly, although in recent months there has been a moderate trend towards a reduction in the total amount of debts.
