Any deviation from the general tax regime laid down in the state laws which provides for a reduction in the tax burden or more favourable tax payment procedures for a taxpayer or a group of taxpayers may be regarded as a tax relief on the basis of the criterion that the taxpayer or a group thereof conforms to a characteristic specified in the tax law (amount of income, marital status, type of economic activity, region, etc.).
There are currently more than 300 different tax incentives in Latvia. According to the calculations of the Ministry of Finance tax expenditures in 2023 were around 3.1 billion euro, which is 8.0% of GDP and amounting for almost ¼ of the total tax revenue. The tax expenditures in 2023 compared to 2022, increased by 82.8 million euro, or by 2.7%.
