Annual Report 2026: Key Information for Business Owners
Companies registered in Latvia must file an annual report once a year. It isn't just a formality - it's an important document that shows the company's financial position and results.
This article gives an overview of the 2026 requirements: filing deadlines, company size categories, when an audit is needed, and the legal responsibilities involved.
Key information at a glance
- Who must file? Every company must file, including those that didn't trade during the year.
- Deadlines: Micro and small companies - by 31 May 2026; medium, large and group parent companies - by 31 July.
- How to file: Electronically, through the State Revenue Service (SRS) Electronic Declaration System (EDS).
- If you don't file: A fine on the board member (from €50 to €2,000) and the risk of the company being struck off.
What is an annual report?
The annual report is a summary of the company's financial year. It shows the company's results, its assets and its liabilities. The report is publicly available, so business partners, clients and banks can review it - which makes it a kind of financial calling card for the company.
Company size categories
Under the Law on Annual Reports and Consolidated Annual Reports, a company's category is set by whether it meets at least two of the three criteria below on the balance sheet date:
1. Micro company
- Balance sheet total: up to €450,000
- Net turnover: up to €900,000
- Average number of employees during the year: up to 10
2. Small company
- Balance sheet total: up to €5,000,000
- Net turnover: up to €10,000,000
- Average number of employees during the year: up to 50
3. Medium-sized company
- Balance sheet total: up to €25,000,000
- Net turnover: up to €50,000,000
- Average number of employees during the year: up to 250
A company that exceeds the medium-sized thresholds is treated as a large company.
What the annual report contains
What goes into the report depends on the company's category, but the core parts are:
- Balance sheet - the company's assets and liabilities at a given date.
- Profit and loss account - income and expenses over the year.
- Notes - detailed explanations and supporting information.
Micro companies get certain reliefs - they can skip the management report and full notes, but must still show the minimum required information below the balance sheet. All documents must be prepared in Latvian.
Sworn auditor review
Whether a review or audit is needed depends on the company's financial indicators:
1. Limited review
Applies to small companies that exceed at least two of these thresholds for two consecutive years:
- Balance sheet total: €400,000
- Net turnover: €800,000
- Average number of employees: 25
2. Full audit
Mandatory for medium, large and group parent companies, and for small companies that exceed these for two consecutive years:
- Balance sheet total: €800,000
- Net turnover: €1,600,000
- Average number of employees: 50
How to prepare
Stocktaking
Before preparing the report, carry out a thorough stocktake of fixed assets, inventory and settlements. The State Revenue Service pays close attention to whether the data matches the real situation.
Contingent liabilities
The notes should disclose contingent liabilities (guarantees, sureties or litigation) that don't show up in the balance sheet figures.
Dividend payments
Profit distribution and dividend payments are only lawful after the shareholders' meeting has formally approved the annual report.
What happens if you file late - or not at all
The penalty for late filing or non-filing is imposed on the board member personally, not on the company.
| Length of delay | Fine imposed on the board member |
|---|---|
| Up to 6 months | €50 – €300 |
| Over 6 months | €305 – €450 |
| Over 1 year | €455 – €650 |
| Report never filed | €655 – €2,000 |
Other risks:
- Company struck off: if the report remains unfiled for more than a year, the Register of Enterprises may initiate simplified liquidation of the company.
- Ban on holding office: the board member may be barred from serving on the boards of other companies.
- Board liability: the board is legally responsible for the accuracy of the data reported.
Conclusion
It's best to plan the annual report well in advance. Keeping the bookkeeping up to date throughout the year makes preparing the report straightforward, without unnecessary stress or legal risk.
Would rather not think about it?
SMAIDA prepares and files your annual report for you - accurately and on time. Preparation of the annual report is included in the accounting outsourcing service when the engagement runs for a full calendar year.
Note: This material is for information only. For specific decisions, please consult your own accountant or lawyer.
Published: 31 July 2026.
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