Annual Report for Companies in Latvia: How to Prepare and File in 2026

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Every enterprise registered in Latvia is required to prepare and file an annual report (gada pārskats) once per year. This is not merely a formal document for the Commercial Register: the annual report reflects the actual financial condition of the business and serves as the basis for tax calculation, investor engagement, and management decisions. In 2026, the preparation rules have changed: new Cabinet Regulation No. 400 has taken effect, and inventory and disclosure requirements have been updated. In this guide, we will cover the complete procedure for preparing and filing an annual report.

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Who Must File an Annual Report in Latvia

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All commercial enterprises registered in Latvia must file an annual report. This applies to SIA (limited liability companies), AS (joint stock companies), individual merchants, and branches of foreign companies. Even if a SIA conducted no activity during the year, the annual report must still be filed. Absence of activity does not exempt from the obligation.

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Annual Report Filing Deadlines in 2026

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• For SIA and AS: within 4 months after the financial year end. If the financial year coincides with the calendar year, the deadline is April 30, 2026
• For large enterprises subject to mandatory audit: within 7 months (by July 31, 2026)

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Filing is done electronically through the Enterprise Register portal (ur.gov.lv) or VID EDS. The filing fee is 15 to 20 euros. Late filing may result in fines from 70 to 430 euros, and systematic violations can lead to forced liquidation.

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What the Annual Report Contains: Structure and Components

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Balance Sheet (bilance)

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The balance sheet reflects the enterprise's financial position on the last day of the reporting period: assets and liabilities. Balance sheet preparation (bilances sastādīšana) is the key stage of annual report preparation.

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Profit and Loss Statement

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Shows the financial result for the year: revenues, expenses, and the final profit or loss. Used for calculating corporate income tax.

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Appendices

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Appendices disclose additional information: accounting policies, fixed assets, receivables and payables, loans, and contingent liabilities. From 2026, disclosure requirements for contingent liabilities and contingent assets have been updated.

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Management Report

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Required for medium and large enterprises. Describes the enterprise's activity, key events, risks, and outlook.

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New Annual Report Preparation Rules From 2026

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Cabinet Regulation No. 400 on annual report preparation took effect July 15, 2025, first applicable to the 2025 annual report (filed in 2026). Key changes:

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• Updated balance sheet and profit/loss statement structure
• New contingent liability disclosure requirements in appendices
• Clarified valuation and recognition rules for certain balance sheet items
• Updated consolidated annual report requirements for enterprise groups

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New Inventory Rules

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Amendments to Cabinet Regulation No. 877 on accounting rules took effect September 26, 2025, introducing changes to inventory procedures. These apply to the 2025 inventory, reflected in the 2025 annual report. Inventory is mandatory at least annually before preparing the annual report.

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Step by Step Preparation and Filing Procedure

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• Step 1: Conduct annual inventory (typically November or December)
• Step 2: Close the accounting year: process all accruals, write-offs, and adjustments
• Step 3: Prepare the balance sheet and profit/loss statement
• Step 4: Prepare appendices with required disclosures
• Step 5: Prepare the management report (if required)
• Step 6: Conduct audit (if subject to mandatory audit)
• Step 7: Approve the annual report at the participants' meeting (SIA) or shareholders' meeting (AS)
• Step 8: File electronically through ur.gov.lv
• Step 9: File the corporate income tax declaration with VID through EDS

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When Mandatory Audit Is Required

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• Net turnover exceeding 800,000 euros
• Balance sheet total exceeding 400,000 euros
• Average employee count exceeding 25

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If two of three criteria are exceeded for two consecutive years, audit becomes mandatory. Audit costs range from 1,000 to 5,000 euros.

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Annual Report Preparation Costs

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• Micro enterprise: 150 to 300 euros
• Small enterprise: 300 to 500 euros
• Medium enterprise: 500 to 1,000 euros
• Enterprise with mandatory audit: 500 to 1,000 euros for preparation + 1,000 to 5,000 euros for audit
• Filing fee to the Enterprise Register: 15 to 20 euros

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Common Mistakes in Annual Report Preparation

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• Inventory not conducted or conducted formally without real verification
• Balance sheet does not balance: assets do not equal liabilities
• Contingent liability information not disclosed in appendices (new 2026 requirement)
• Annual report filed past the deadline. Fine from 70 to 430 euros
• Report not approved by the participants' meeting
• Outdated report forms used that do not reflect Regulation No. 400 changes

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Frequently Asked Questions

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What is the filing deadline for the 2025 annual report?

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For SIA and AS: April 30, 2026. For large enterprises with mandatory audit: July 31, 2026.

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Must an annual report be filed if the SIA had no activity?

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Yes. The annual report is mandatory for all registered enterprises regardless of activity.

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How much does annual report preparation cost for a small SIA?

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150 to 500 euros depending on transaction volume and employee count. Filing fee to the Enterprise Register: 15 to 20 euros.

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What is new in the 2025 annual report preparation rules?

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Cabinet Regulation No. 400 with updated report structure and new contingent liability disclosure requirements. Inventory rules under Regulation No. 877 were also updated.

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When is mandatory audit required for the annual report?

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When the enterprise exceeds two of three criteria for two consecutive years: turnover over 800,000 euros, balance over 400,000 euros, over 25 employees. Audit costs: 1,000 to 5,000 euros.

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How Lex&Finance Specialists Can Help With Annual Report Preparation

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Lex&Finance provides accounting services in Riga and Latvia, including complete annual report preparation and filing. Our licensed accountants will conduct inventory, prepare the balance sheet, profit/loss statement, appendices per the new 2026 rules, and file electronically with the Enterprise Register. Contact us for a free initial consultation through our website lexfinance.lv or by phone.