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Latvia - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
Corporate tax is charged at a flat rate of 15%.
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Taxe rate on long-term capital gains |
Companies operating in Latvia include capital gains in taxable income. For nonresident companies without a permanent establishment, a final withholding tax at a rate of 2% is imposed on proceeds received on sales of Latvian real estate.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
In Latvia, the dividends withholding tax rate is 10%. A 10% withholding tax is imposed on dividends paid to non residents.
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Tax rate on branches |
Branches are taxed for the corporate tax in the same way as any other companies but they are not granted with the same deductions allowances.
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Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
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Income tax rate |
Tax is charged at a flat rate of 25%.
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Tax deductions or
other allowances |
Rates to Social Security.
Donations to charitable organizations.
Hospitalization and medical expenses.
Certain school fees.
Lump sums are granted as deduction. The amount depends on the status and the health of each.
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VAT rates
Standard rates |
The base rate is 18%.
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Reduced rates |
There is a 9% reduced rate that applies to medicines, media supplies, baby-care products, books, hotel accommodation, domestic hot water, heating and sewarage supplies.
That rate will be reduced to 5% on May, 1st of 2004.
A zero-rate applies to exports.
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Other important taxes
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Name of tax |
Rate |
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Land tax
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5,5% to 3,5%
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Accounting
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Professionals and representative organizations
The "Ministry of Finance" (Finansu ministrija), Riga.
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Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
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