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Taxation in Latvia

  • Incorporation time: 4 days
  • Shelf companies: Yes
  • Accounting: Yes
  • Secretary: Yes
  • Nominee Shareholder: Yes
  • Nominee director: Yes
Tax 15%
Holdings: 0%
1 LVL = 1.43 €

Latvian Tax Rates

Companies are taxed at 15% and capital gains are usually taxed at the same rate. Depreciation, dividends, trade with subsidiaries, and income from property sales or rentals are generally tax-deductible. Since 1 January 2013, Latvia has had a tax rate of 0% on holding companies, i.e. on subsidiaries’ profits.

VAT is 22%, with reduced rates of 10% for foodstuffs, medicines, medical equipment, water, books and newspapers, hotels, etc and some full exemptions.

Personal income tax in Latvia is taxed at the following rate irrespective of amount:

Tax rate
26% of salaries 10% on capital 15% on capital gains

 

The following income is not subject to tax: income from investments in retirement pension funds, insurance claims and income from the sale of personal assets.

Links:
Latvian Tax Authority

Accounting Requirements in Latvia

Latvian accounting is subject to the IFRS’s European regulations. By default the fiscal year runs from 1 January to 31 December though companies may elect for a different twelve-month period. Accounts must be published in Latvian (or, in some cases, in an approved second language for foreign companies).

Accounting documents must be maintained in Latvia and must comprise a balance sheet, a profit and loss account, an appendix and a management report. Accounts must be audited if the company has capital of more than EUR 356 000 and/or a turnover of over 711 000 EUR, and/or if the number of employees exceeds 25.

Link:
Ministry of Finance, Council of Accounting Regularization

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