On Tuesday, 16 November, the Saeima adopted in the final reading amendments to the Law on Personal Income Tax, which provide for a gradual increase in the non-taxable minimum as of next year. The amendments are introduced in relation to the state budget for 2022.

Next year, the ceiling for the differentiated non-taxable minimum for employees and the non-taxable minimum for pensioners will be raised. 

From 1 January to 30 June 2022, the minimum monthly income exempt from personal income tax will be 350 EUR, followed by 500 EUR per month from 1 July.

Currently, minimum monthly income exempt from personal income tax is 300 EUR per month, and 330 EUR per month for pensioners.

The amendments also establish the procedure whereby the State Revenue Service will determine the projected monthly non-taxable minimum in 2022.

Other changes to the application of personal income tax include tax exemption regarding support programmes for the renovation of residential buildings and grants issued for increasing the energy efficiency of buildings to improve their energy class and receive technical assistance.

Similarly, co-financing for the connection of private homes to centralised heating and water supply systems, as well as sewerage networks will not be taxed.

Amendments to the Law on Personal Income Tax will enter into force on 1 January 2022.

Saeima Press Service