Latvia Tax 2018

Value added tax (VAT)

• 21% standard rate
• 12% reduced rate (medicine, med. Equipment, literature

Corporate income tax (CIT)

• 20% standard rate when profits are distrubuted, 0% when profits are retained in the company
• 15% reduced rate due to microenterprice (income less than 40,000 EUR per year)

Personal income tax

• 20% until 20,004 EUR ; 23% 20,005 – 55,000 EUR ; 31,4% from 55,001 EUR
• 0% dividends, 20% interests, 20% real – estate income
• 20% capital gains tax

Social security tax

• 11% for employee
• 9% for employer

Property tax

• 2 – 3% of the cadastral value