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Corporate tax
| Tax rate for resident companies |
15%
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| Tax rate on long-term capital gains |
Capital gains are included in the taxable income of the Companies operating in Latvia.
For non-resident companies without a permanent establishment, a final withholding tax at a rate of 2% is assessed 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 |
A 10% withholding tax is imposed on dividends paid to non-residents.
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| Tax rate on branches |
Branches are subject to a corporate tax rate of 15% in the same way as any other companies.
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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 |
Are exempt:
- income from investments in private pension funds and insurance indemnities,
- gain on the sale of personal property.
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VAT rates
| Standard rates |
18%
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| Reduced rates |
There are two lower rates.
A 5% tax rate applies to certain services, such as hotel services, veterinary services, and water and waste collection.
A 0% tax rate applies to the export of goods and related services, and supplies and maintenance relating to vessels used by international shipping lines.
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Other important taxes
| Name of tax |
Rate |
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Property tax
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1,50%
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Accounting
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Professionals and representative organizations
The "Ministry of Finance" (Finansu ministrija), Riga.
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| Last modified in
January 2007
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