Latvia

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

15%

   
Tax rate on long-term capital gains Capital gains are included in the taxable income of the Companies operating in Latvia.
For non-resident companies without a permanent establishment, a final withholding tax at a rate of 2% is assessed on proceeds received on sales of Latvian real estate.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies A 10% withholding tax is imposed on dividends paid to non-residents.
   
Tax rate on branches Branches are subject to a corporate tax rate of 15% in the same way as any other companies.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate Tax is charged at a flat rate of 25%.
   
Tax deductions or other allowances Are exempt:
- income from investments in private pension funds and insurance indemnities,
- gain on the sale of personal property.



VAT rates

Standard rates 18%
   
Reduced rates There are two lower rates.
A 5% tax rate applies to certain services, such as hotel services, veterinary services, and water and waste collection.
A 0% tax rate applies to the export of goods and related services, and supplies and maintenance relating to vessels used by international shipping lines.



Other important taxes


Name of tax
Rate
Property tax  
1,50%  


 

Accounting


Professionals and representative organizations
The "Ministry of Finance" (Finansu ministrija), Riga.



Useful links
State Revenue Service of Latvia
Ministry of Finance

Last modified in January 2007
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