# 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) — https://taxsummaries.pwc.com/latvia)_
- **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) — https://www.vid.gov.lv/en)_
- **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) — https://taxsummaries.pwc.com/latvia/individual/residence)_
- **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) — https://www.vid.gov.lv/en/personal-income-tax-rates)_
- **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) — https://taxsummaries.pwc.com/latvia/corporate/taxes-on-corporate-income)_
- **Does VAT/GST exist?** — Yes — VAT (pievienotās vērtības nodoklis, PVN) at a standard rate of 21%  _(Value Added Tax Law (Pievienotās vērtības nodokļa likums) — https://taxsummaries.pwc.com/latvia/corporate/other-taxes)_
- **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) — https://www.vid.gov.lv/en/due-dates-filing-returns-and-paying-taxes)_
- **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) — https://www.vid.gov.lv/en/corporate-income-tax)_
- **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) — https://gramatvedisriga.lv/en/blog/annual-report-guide)_