Latvia

Corporate Income Tax in Latvia

Latvian corporate income tax for tax year 2026 under the Corporate Income Tax Law (Uzņēmumu ienākuma nodokļa likums) in force from 1 January 2026. Latvia taxes a company only when it distributes profit: 20% of the amount divided by 0.8. Covers who pays, the optional 15% rate with a 0.85 divisor for dividends of companies owned only by individuals (plus 6% personal income tax), deemed distributions (non-business expenses, bad debts, excess interest, loans to related persons, transfer pricing adjustments), dividends received, the 36-month share disposal relief, pre-2018 profits and losses, the monthly return by the 20th and payment by the 23rd, the EUR 50 minimum, fines and 0.05% a day late interest.