Latvia Tax Overview

The Latvian tax system at a glance

Latvia is an EU member state with a euro-denominated tax system administered by the State Revenue Service (Valsts ieņēmumu dienests, VID). Personal income tax became progressive again from 2025 and corporate tax uses a distribution-based model.

• Tax year — Calendar year (1 January to 31 December) (Law On Taxes and Duties (Par nodokļiem un nodevām))
• Currency — Euro (EUR) (Law On Taxes and Duties (Par nodokļiem un nodevām))
• Tax authority — State Revenue Service (Valsts ieņēmumu dienests, VID); electronic filing via the EDS system (Law On the State Revenue Service (Par Valsts ieņēmumu dienestu))
• Residence basis of taxation — Residents are taxed on worldwide income; non-residents are taxed only on Latvian-source income (Law On Personal Income Tax (Par iedzīvotāju ienākuma nodokli))
• Headline personal income tax rates (2025) — 25.5% up to EUR 105,300; 33% above EUR 105,300; plus an additional 3% on total annual income over EUR 200,000 % (Law On Personal Income Tax (Par iedzīvotāju ienākuma nodokli))
• Headline corporate income tax — 20% on distributed profits (20/80 of the net distribution, an effective 25% rate); 0% on retained/reinvested profits % (Corporate Income Tax Law (Uzņēmumu ienākuma nodokļa likums))
• Does VAT/GST exist? — Yes — VAT (pievienotās vērtības nodoklis, PVN) at a standard rate of 21% (Value Added Tax Law (Pievienotās vērtības nodokļa likums))
• Annual personal income declaration deadline — Generally by 1 June of the following year (by 1 July if total annual income exceeds EUR 78,100); refund-only declarations may be filed within 3 years ((approx — confirm)) (Law On Personal Income Tax (Par iedzīvotāju ienākuma nodokli))
• Corporate income tax return deadline — Monthly, by the 20th day of the following month where a tax base arises; tax paid by the 23rd (Corporate Income Tax Law (Uzņēmumu ienākuma nodokļa likums))
• Annual financial statements deadline — Within 4 months of the financial year end (within 7 months for larger companies) ((approx — confirm)) (Law On the Annual Financial Statements and Consolidated Financial Statements (Gada pārskatu un konsolidēto gada pārskatu likums))