Taxes | Rates | Short explanations |
Corporate income tax | 15 % of taxable income For non-residents 2 % - 15 % | The taxpayer's taxable income - the profit earned from operating activities from which costs related to operating activities have been deducted.
On dividends 0% to EU and Latvian residents, in other cases 10%; Interest 0% on payments to unrelated parties; for related parties 10% (5% for EU entities, 0% as of 1 July 2013); Management and consulting fees 10%, can be reduced to 0%; Royalties 15% on literature or art; 5% in other cases; Use of Latvian property 5%; Real estate sales or shares 2%; Payments to offshore companies 15%, the SRS may grant relief. |
Personal income tax | 26 % (including on operating activities), 10 % on income from capital that is other than capital gain, 15 % on capital gain. | 1) income earned from employment relations, 2) income from operating activities, 3) other income pursuant to Section 3 of the Personal Income Tax Law. |
Mandatory state social insurance contributions
| 33.09 % of which: 24.09 % - by the employer, 9 % - by the employee.
25.94 % of which: 18.88 % - by the employer, 7.06 % - by the employee. | The employee is insured for all social insurance types. The payment calculated for the employee to whom a salary is paid, of which the personal income tax has been withheld, and the earning of the self-employed person. for persons entitled to receive the old-age pension.
Other rates pursuant to the State Social Insurance Law. |
Value added tax
| 21%
| 1) supply of goods, incl. self consumption, 2) provision of services, incl. self consumption, 3) import of goods, 4) purchase of goods from EU 5) receipt of services internally from EU, 6) purchase of new motor vehicles by non-taxable entities in the territory of the EU. |
| 10%
| 1) medicines, medical devices and goods, specialized products for infants acc. to a list of the Cabinet of Ministers, 3) newspapers, magazines and other periodicals (until 31.12.2010), 4) textbooks and original works of literature (from 01.08.2009), 5) domestic public transport, 6) supply of heating, electricity, natural gas, firewood and timber to the population. |
| 0%
| 1) export and supply of goods in the customs warehouse or free area, 2) services related to export, import and transit of goods and services within the free area and customs warehouse, 3) fuelling and supply of goods and services of ships and aircraft 4) international passenger transport, 5) import of electricity of natural gas via the transmission or distribution system, 6) supply of goods within the EU 7) others acc. § 7 of VAT Law. |
| Transactions exempt from tax
| 1) social care, rehabilitation and social aid services, 2) education services 3) pre-school establishments, 4) theatre and circus, concerts, exhibitions, museums, 5) library services, 6) insurance services, 7) postal services, 8) rent of residential premises, 9) certain financial services, 10) others acc. § 6 of VAT Law. |
| VAT not applicable to
| 1) services with the place of provision other than domestic (effective as of 01.01.2010), 2) supply of goods with the place of delivery other than domestic. |
Excise tax |
| On alcoholic beverages, tobacco products, oil products, non-alcoholic beverages, coffee |
Car and motorcycle tax |
| 1) acc. CO2 emission - rates specified in the Car and Motorcycle Tax Law. 2) the rate of LVL 0.10 per each cubic centimeter of the engine capacity. |
Natural resources tax |
| Extraction of natural resources and water; Waste disposal; Air pollution and greenhouse gases of equipment; Water pollution; Environmentally hazardous goods; Packaging of goods and products, disposable tableware and accessories; Radioactive substances; Coal, coke and lignite |
Real estate tax | From 1 January 2010
| Land, buildings, incl. buildings not commissioned, engineering, except real estate specified in § 1 and 2 of the Law |
| 1.5 % of the cadastral value of the real estate. | 1) for land; 2) for buildings; 3) engineering structures. |
| 1) 0.1 % of the value not exceeding LVL 40 000; 2) 0.2 % of the value LVL 40 000 - 75 000; 3) 0.3 % of the part of value exceeding LVL 75 000. | For single family and double family homes, multi-apartment houses (parts thereof) regardless of the same being or not being divided in apartment properties, parts of non-residential buildings with the functional use being that of residence, which (the parts of which) are not used for business purposes |
| Additional rate of 1.5 % of the cadastral value
| For unfarmed agricultural land except where the area thereof does not exceed one hectare or where there are farming restrictions set forth for it under laws and regulations |
Lottery and gambling tax | Roulette - LVL 9600.
Card and dice
games - LVL 9600. Bingo - 10 %.
Sweepstake and betting - 15 % Videogames and slot machines - 1680 LVL. Game of chance by telephone - 15 % A gambling game organized through telecommunication channels - 10 % Lotteries - 10 % | 1. 1/12 part of the annual rate; annual rate for each added table. 2. 1/12 part of the annual rate; for each table 3. Income from the game organization 4. Income from the game organization 5. 1/12 part of the annual rate; per each machine place
6. Income from the game organization 7. Income from the game organization
8. Income from ticket sales |
Electricity tax | LVL 0.71 for Megawatt-hour (from 01.01.2010) | Electricity supplied to end-users Electricity supplied for self consumption. |
