The top of the list of the largest taxpayers is always dominated by fuel traders, beverage producers and large state-owned enterprises; however, non-governmental organisations registered in the Register of Associations and Foundations also make a certain, albeit smaller, contribution to the state budget in the form of tax payments.

Lursoft has examined which non-governmental organisations are the largest taxpayers, and has also analysed the income of organisations registered in the Register of Associations and Foundations over the past two years.

The compiled data reveal that the Register of Associations and Foundations contains information on almost 26 thousand organisations, of which 17.6 thousand submitted reports for 2021. Data published by the State Revenue Service on taxes paid reveal information on tax payments made to the state budget by 1.8 thousand organisations last year.

A review of the annual reports submitted by associations and foundations shows that in 2021, non-governmental organisations received a total of 57.28 million EUR in membership fees, a further 58.70 million EUR in donations, and 100.64 million EUR in grants. According to information compiled by Lursoft, the total income of associations and foundations last year was more than 482 million EUR. At the same time, it should be noted that the total income of non-governmental organisations after expenses last year was only 20.64 million EUR, which is nearly a third less than in 2020. In 2021, entities registered in the Register of Associations and Foundations paid 62.66 million EUR in taxes to the state budget.

The leaders in terms of the volume of taxes paid last year are the two largest organisations operating in the social sector – the Latvian Red Cross and the Latvian Samaritan Association. Information published by the State Revenue Service (VID) shows that the Latvian Red Cross paid 5.55 million EUR in taxes to the state budget last year. The information in the annual report shows that last year the total revenue of the Latvian Red Cross grew by 30.88% compared to 2020, reaching 19.23 million EUR. At the same time, the organisation's retained earnings after expenses also increased nearly threefold.

A similar picture emerges when looking at the annual report of the Latvian Samaritan Association. The information included therein shows that the association's income increased by 27.71% in 2021, reaching 9.8 million EUR. The largest share of income, namely 8.37 million EUR, consisted of grants received by the Latvian Samaritan Association.

Among the TOP 30 largest taxpayers in the Register of Associations and Foundations, the majority of non-governmental organisations are registered in Riga, totalling 22, with one each from the Ādaži, Cēsis, Mārupe, Salaspils and Valmiera municipalities, as well as Liepāja and Jūrmala. Several education-related organisations made the list, as well as five sports clubs and five professional organisations, including the Latvian Chamber of Commerce and Industry, the Latvian Association of Local Governments and the Latvian Medical Association. It should be noted that football is particularly well represented among the TOP 30 largest taxpayers.

Information published by VID shows that in 2021 there were six non-governmental organisations whose tax payments to the state budget exceeded 1 million EUR, two of which are related to football. In terms of the volume of taxes paid, the leader among them is the association Riga Football Club, which was initially registered as FC Caramba Riga, and then renamed Riga Dinamo Football Club a year after its foundation. Admittedly, the association was known by this name for only a few months, as it soon acquired its current name, Riga Football Club. Lursoft data show that the general director of the football club “Riga FC”, Aleksandrs Proņins, became the head of the association in 2015.

Last year, Riga Football Club paid 1.37 million EUR in taxes to the state budget, which is the highest amount paid in taxes last year by any sports club registered as an association. It should be noted that in 2021, the donations received by Riga Football Club increased significantly – while in 2020 their volume was only 30 thousand EUR, last year it reached 2.37 million EUR, while income from economic activity increased to 4.16 million EUR. However, despite the fact that the association's income increased by 46.88% last year, the club's expenditure was still higher.

Lursoft report information shows that in July 2020, Riga Football Club had its public benefit organisation status revoked. Currently, this status is registered for only 1,722 associations and foundations, and 11 among the TOP 30 largest taxpayers.

It should be noted that among the largest taxpayers registered in the Register of Associations and Foundations, there is also the foundation “Sanatorija Belorusija” in Jūrmala, which has been sanctioned by both the Road Traffic Safety Directorate and the Enterprise Register, because the actual controller of the foundation is the self-proclaimed president of Belarus, Alexander Lukashenko.

Information published by VID reveals that the foundation “Sanatorija Belorusija” in Jūrmala paid just under 900 thousand EUR in taxes last year. As of 15 September this year, the foundation had accumulated a tax debt of 24.81 thousand EUR, and it also has two active encumbrances.

Lursoft has investigated that encumbrances are currently registered for 146 associations and foundations, of which 49 have indicated that they are engaged in the activities of unclassified organisations (e.g., the Latgale Region Development Agency, the Sports and Education Centre “Zaļā skola”), while 19 organisations indicated that they are related to the activities of sports clubs.

It should be noted that four organisations which currently have active encumbrances also hold public benefit organisation status. These are the association Baltijas krasti, the Latgale Region Development Agency, Komturia-Riga and the Latvian Cultural Growth Foundation.

30 largest taxpayers registered in the Register of Associations and Foundations