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Tax system in Latvia
Taxes for individuals in Latvia
Value Added Tax (Latvian – Pievienotās vērtības nodoklis)
The basic rate is 21%, the reduced rate of 12% is applied to medicines, certain foods, passenger transport, educational literature and periodicals, hotel services, wood fuel, heat supply and property management services. Import and export are not subject to VAT.
Personal income tax (Latvian – Iedzīvotāju ienākuma nodoklis)
The basic rate is 23%. Dividends of profits for individuals, after 31.12.2017., are no longer subject to inhabitant income tax of 10%, but are taxed with income tax from enterprises of 20%.
Obligatory social insurance contributions (Latvian – Valsts sociālās apdrošināšanas obligātās iemaksas)
The basic rate is 34.09% of the employee’s salary, of which 10.50% is paid by the employee and 23.59% by the employer.
Solidarity tax (Latvian – Solidaritātes nodoklis)
The rate and mechanism of the solidarity tax are identical to the rate and the mechanism of OSIC (34.09% of the employee’s salary, of which 10.50% is paid by the employee, and 23.59% by the employer). Taxed income is more than 48,600 euros per year.
Property tax (Latvian – Nekustamā īpašuma nodoklis)
The tax rate ranges from 0.2% to 1.5% of the cadastral value of the property and can be increased to 3% for abandoned objects.
Vehicle operation tax (Latvian. Transportlīdzekļa ekspluatācijas nodoklis) The tax is levied on vehicles owned by private individuals. For vehicles older than 2005, a higher rate is applied.
Customs tax (Latvian – Muitas nodoklis)
Applies to goods imported into Latvia from outside the European Union. The rates are determined by the European Commission Regula.
Excise tax (Latvian – Akcīzes nodoklis)
Tax is levied on alcoholic beverages, tobacco products, petroleum products, natural gas, soft drinks and coffee, as well as liquids used in electronic cigarettes.
Value Added Tax (VAT) (Latvian – PVN)
VAT is an indirect tax. Taxable object – goods and services (tax is added to the price of a product or service). The basic VAT rate in Latvia is 21%. Reduced rate – 12%.
The basic rate is 21%, the reduced rate of 12% is applied to medicines, certain foods, passenger transport, educational literature and periodicals, hotel services, wood fuel, heat supply and property management services. Import and export are not subject to VAT.
Personal income tax (Latvian – Iedzīvotāju ienākuma nodoklis)
The basic rate is 23%. Dividends of profits for individuals, after 31.12.2017., are no longer subject to inhabitant income tax of 10%, but are taxed with income tax from enterprises of 20%.
Obligatory social insurance contributions (Latvian – Valsts sociālās apdrošināšanas obligātās iemaksas)
The basic rate is 34.09% of the employee’s salary, of which 10.50% is paid by the employee and 23.59% by the employer.
Solidarity tax (Latvian – Solidaritātes nodoklis)
The rate and mechanism of the solidarity tax are identical to the rate and the mechanism of OSIC (34.09% of the employee’s salary, of which 10.50% is paid by the employee, and 23.59% by the employer). Taxed income is more than 48,600 euros per year.
Property tax (Latvian – Nekustamā īpašuma nodoklis)
The tax rate ranges from 0.2% to 1.5% of the cadastral value of the property and can be increased to 3% for abandoned objects.
Vehicle operation tax (Latvian. Transportlīdzekļa ekspluatācijas nodoklis) The tax is levied on vehicles owned by private individuals. For vehicles older than 2005, a higher rate is applied.
Customs tax (Latvian – Muitas nodoklis)
Applies to goods imported into Latvia from outside the European Union. The rates are determined by the European Commission Regula.
Excise tax (Latvian – Akcīzes nodoklis)
Tax is levied on alcoholic beverages, tobacco products, petroleum products, natural gas, soft drinks and coffee, as well as liquids used in electronic cigarettes.
Value Added Tax (VAT) (Latvian – PVN)
VAT is an indirect tax. Taxable object – goods and services (tax is added to the price of a product or service). The basic VAT rate in Latvia is 21%. Reduced rate – 12%.
Tax system in Latvia
In 2018, the progressiveness principle in calculating taxes was introduced in Latvia. This means that the amount of taxes depends on the person’s income, i.e. wealthier residents pay higher taxes, and those who receive smaller wages, pay lower ones.
In accordance with the changes in the law “On Personal Income Tax”, personal income tax (IIN)
– with income of up to 20,000 euros per year (1,667 euros per month before taxes) the tax rate is 20%;
– with income from 20,001 to 62,800 euros per year – 23%
non-taxable amount for dependents – up to 230 euro per month
Useful information on taxes is available on the website https://www.vid.gov.lv/
All taxes from your salary, as a rule, are calculated and paid by your employer (unless the contract says otherwise). You get the final net amount on your bank account.
You can find out what tax amounts were paid from your salary on the website https://eds.vid.gov.lv/login/, also once a year you have the right to receive a refund of overpaid personal income tax, which is formed when applying differentiated non-taxable minimum, for this you need to submit an annual income declaration.
You can find more here – https://www.vid.gov.lv/ru/chtoby-vernut-pereplatu-podohodnogo-naloga-s-naseleniya-kotoraya-obrazuetsya-pri-primenenii
You can calculate your net salary here – https://blog.swedbank.lv/ru/vychisli/kalkulyator-zarabotnoy-platy
In accordance with the changes in the law “On Personal Income Tax”, personal income tax (IIN)
– with income of up to 20,000 euros per year (1,667 euros per month before taxes) the tax rate is 20%;
– with income from 20,001 to 62,800 euros per year – 23%
non-taxable amount for dependents – up to 230 euro per month
Useful information on taxes is available on the website https://www.vid.gov.lv/
All taxes from your salary, as a rule, are calculated and paid by your employer (unless the contract says otherwise). You get the final net amount on your bank account.
You can find out what tax amounts were paid from your salary on the website https://eds.vid.gov.lv/login/, also once a year you have the right to receive a refund of overpaid personal income tax, which is formed when applying differentiated non-taxable minimum, for this you need to submit an annual income declaration.
You can find more here – https://www.vid.gov.lv/ru/chtoby-vernut-pereplatu-podohodnogo-naloga-s-naseleniya-kotoraya-obrazuetsya-pri-primenenii
You can calculate your net salary here – https://blog.swedbank.lv/ru/vychisli/kalkulyator-zarabotnoy-platy