Taxes

 Enterprises income tax

• Companies are subject to enterprises income tax, enterprises income tax rate is 15% flat.
• Companies deriving income may be subject to certain withholding taxes.
• Latvia has a classical income tax system which results in economic double taxation.

VAT

• In Latvia companies must register for VAT if their sales turnover is more than LVL 10 000 in a twelve-month period. Registration means that at every stage of production and distribution VAT must be charged on anything that is sold.
• VAT standard rate 18%.
• Company can receive VAT number if it has trading activities in Latvia.

Social taxes

• Company should have minimum one employee receiving salary, min salary is 80 LVL.
• Social taxes 9% paid by employee and 24,09% by employer.
• Employer is responsible for both social taxes payment.

 
Personal income tax

• Individuals should pay personal income tax from received income including salary, rate is 25% flat.