Lv Tax Overview

---
name: lv-tax-overview
description: "Tax overview for Latvia, tax year 2026: the State Revenue Service (VID), the calendar tax year, residence (declared home or 183 days in any 12 months), personal income tax at 25.5% and 33% with the band at EUR 105,300 and a 3% surcharge above EUR 200,000, the EUR 550 monthly non-taxable minimum, corporate income tax of 20% on distributed profit divided by 0.8 (optional 15% with a 0.85 divisor plus 6% personal tax for companies owned only by individuals), micro-enterprise tax at 25% of turnover, VAT at 21% with a EUR 50,000 registration threshold, social contributions of 34.09%, and the main filing and payment dates. Trigger on: Latvia tax overview, Latvian tax system, how is Latvia taxed, VID deadlines, Latvia tax rates 2026. For detail use latvia-income-tax, lv-corporate-income-tax, latvia-vat-return, latvia-social-contributions, latvia-payroll, lv-cross-border, lv-transfer-pricing and latvia-tax-optimization."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/lv-tax-overview"
  jurisdiction: "LV"
  tax_year: "2026"
  last_updated: "2026-10-30"
---

# Latvia Tax Overview

## The Latvian tax system at a glance

Latvia is an EU member state with a euro tax system run by the State Revenue Service (Valsts ieņēmumu dienests, VID). Personal income tax has two bands plus a surcharge on very high income. Company profit is taxed only when it is distributed or treated as distributed. Figures below are for tax year 2026. Each line names its source; the full list is in Sources at the end.

- **Tax year.** The calendar year for individuals (PIT Law s. 2(1)). A company's corporate income tax period is the calendar month, or the quarter for a company allowed to book its documents once a quarter (CIT Law art. 3(2), (3)). See latvia-income-tax and lv-corporate-income-tax.
- **Currency.** Euro (EUR). The thresholds in the tax laws are set in euro.
- **Tax authority.** State Revenue Service (VID). Returns and annual reports go through its Electronic Declaration System (EDS) (VID, Annual reports page).
- **Who is resident.** A person is resident if their declared home is in Latvia, if they stay in Latvia 183 days or more in any 12-month period that starts or ends in the tax year, or if they are a Latvian citizen employed abroad by the Latvian government (Law on Taxes and Fees art. 14(2)). A company is resident if it is set up and registered under Latvian law (art. 14(4)).
- **What is taxed.** Residents pay personal income tax on income from Latvia and abroad; non-residents pay only on income from Latvia (PIT Law s. 2(1), (2)). See lv-cross-border for non-residents and treaties.
- **Personal income tax rates (2026).** 25.5% on annual income up to the maximum social insurance base, and 33% on the part above it (PIT Law s. 15(2)). That base is EUR 105,300 a year (Law on State Social Insurance s. 14(5)). A further 3% applies to total annual income above EUR 200,000 (PIT Law s. 15.1(1)). Employers withhold 25.5% each month (s. 15(3)). Capital income and capital gains are taxed at 25.5% (s. 15(5)). See latvia-income-tax.
- **Non-taxable minimum (2026).** A fixed EUR 550 a month for everyone, whatever their income (PIT Law transitional provision 197(2); VID). VID gives EUR 510 for 2025 and EUR 570 for 2027.
- **Corporate income tax.** 20% of the taxable base (CIT Law art. 3(1)). The amount distributed, or treated as distributed, is first divided by 0.8 (art. 4(9)), so the tax is 25% of a net dividend. Profit kept in the company is not taxed. Non-business expenses, bad debts, excess interest, loans to related persons and transfer pricing adjustments are taxed as deemed distributions (VID, Corporate income tax page). See lv-corporate-income-tax and lv-transfer-pricing.
- **Alternative dividend rate from 1 January 2026.** A company whose members are only individuals may choose 15% on calculated dividends, with the dividend divided by 0.85 (CIT Law art. 3(5), art. 4.2(1), (2)). The individual then pays 6% personal income tax on those dividends (PIT Law s. 15(5.1)). See lv-corporate-income-tax.
- **Micro-enterprise tax.** A single tax of 25% of turnover (VID, Micro-enterprise tax rate page). Only an individual merchant, an individual enterprise, a farm or fishing household, or an individual registered with VID as self-employed may choose it, and expected turnover must not exceed the VAT registration threshold (VID, Micro-enterprise tax page). See latvia-tax-optimization.
- **VAT.** Value added tax (pievienotās vērtības nodoklis, PVN) at a standard 21% (VAT Law art. 41(1)(1)), with reduced rates of 12% and 5% for listed goods and services (VID, VAT rates page). A business may stay unregistered while its domestic supplies in a calendar year stay at or under EUR 50,000 (art. 59(1)). See latvia-vat-return.
- **Social contributions.** 34.09% for an employee insured for all risks: 23.59% employer, 10.50% employee (Law on State Social Insurance s. 18(1)). A self-employed person with monthly income of at least EUR 780 pays 31.07% on a base of at least EUR 780 a month, plus 10% for pensions on the income above EUR 780; below EUR 780 they pay only the 10% pension contribution on actual income (VID, Self-employed contributions page). See latvia-social-contributions and latvia-payroll.

## Main deadlines

- **Annual personal income tax return.** Filed from 1 March to 1 June of the next year. If income taxed at the s. 15(2) rates is above the maximum social insurance base (EUR 105,300), it is filed from 1 April to 1 July (PIT Law s. 19(5)). A return can be filed or corrected for three years, for example to claim a refund (VID, Annual income return page).
- **Paying personal income tax due on the annual return.** By 23 June. If the tax is over EUR 640, it can be paid in three parts by 23 June, 23 July and 23 August. If annual income is above EUR 105,300, the tax is due by 23 July, or, if it is over EUR 640, in three parts by 23 July, 23 August and 23 September (VID, Mandatory annual income return page).
- **Corporate income tax return.** By the 20th of the month after each tax period (CIT Law art. 17(1)). A month with no taxable base needs no return, except the last month of the reporting year (art. 17(3)). The tax is paid into the single tax account by the 23rd (art. 17(7)).
- **VAT return.** Within 20 days after the end of the tax period (VAT Law art. 118(1)); the tax is paid within 23 days (art. 119(1)). The period is monthly if taxable supplies were over EUR 50,000 in the previous or current year (art. 115(1)(1)).
- **Annual financial statements.** Filed with VID within a month of approval, and no later than five months after the year end for micro and small companies, or seven months for medium and large companies and parents preparing consolidated accounts (Annual Reports and Consolidated Annual Reports Law art. 97(1)). Individual enterprises, farms and fishing households prepare an annual report once their turnover in the previous year is over EUR 300,000 (VID, Annual reports page).
- **Late payment interest.** 0.05% of the unpaid tax for each day late, unless a tax law sets another rate (Law on Taxes and Fees art. 29(2)).

## Sources

| Source | URL | Read on |
|---|---|---|
| Law on Taxes and Fees (Par nodokļiem un nodevām), art. 14 and 29 (Internet Archive copy of 18 September 2026) | https://likumi.lv/ta/id/33946-par-nodokliem-un-nodevam | 2026-10-30 |
| Law on Personal Income Tax (Par iedzīvotāju ienākuma nodokli), s. 2, 15, 15.1, 19, transitional provision 197 (Internet Archive copy of 1 September 2026) | https://likumi.lv/ta/id/56880-par-iedzivotaju-ienakuma-nodokli | 2026-10-30 |
| Corporate Income Tax Law (Uzņēmumu ienākuma nodokļa likums), art. 3, 4, 4.2, 17 (Internet Archive copy of 4 October 2026) | https://likumi.lv/ta/id/292700-uznemumu-ienakuma-nodokla-likums | 2026-10-30 |
| VAT Law (Pievienotās vērtības nodokļa likums), art. 41, 59, 115, 118, 119 (Internet Archive copy of 16 October 2026) | https://likumi.lv/ta/id/253451-pievienotas-vertibas-nodokla-likums | 2026-10-30 |
| Law on State Social Insurance (Par valsts sociālo apdrošināšanu), s. 14(5), 18(1) (Internet Archive copy of 3 October 2026) | https://likumi.lv/ta/id/45466-par-valsts-socialo-apdrosinasanu | 2026-10-30 |
| Annual Reports and Consolidated Annual Reports Law, art. 97 (Internet Archive copy of 18 August 2026) | https://likumi.lv/ta/id/277779-gada-parskatu-un-konsolideto-gada-parskatu-likums | 2026-10-30 |
| VID, Personal income tax rates | https://www.vid.gov.lv/lv/iedzivotaju-ienakuma-nodokla-likmes | 2026-10-30 |
| VID, Mandatory annual income return | https://www.vid.gov.lv/lv/obligati-iesniedzama-gada-ienakumu-deklaracija | 2026-10-30 |
| VID, Annual income return | https://www.vid.gov.lv/lv/gada-ienakumu-deklaracija | 2026-10-30 |
| VID, Corporate income tax | https://www.vid.gov.lv/lv/uznemumu-ienakuma-nodoklis | 2026-10-30 |
| VID, Corporate income tax rates | https://www.vid.gov.lv/lv/uznemumu-ienakuma-nodokla-likmes | 2026-10-30 |
| VID, Micro-enterprise tax | https://www.vid.gov.lv/lv/mikrouznemumu-nodoklis | 2026-10-30 |
| VID, Self-employed contributions | https://www.vid.gov.lv/lv/pasnodarbinata-socialas-apdrosinasanas-iemaksas | 2026-10-30 |
| VID, Micro-enterprise tax rate | https://www.vid.gov.lv/lv/mikrouznemumu-nodokla-likme | 2026-10-30 |
| VID, VAT rates | https://www.vid.gov.lv/lv/pievienotas-vertibas-nodokla-likmes | 2026-10-30 |
| VID, Annual reports | https://www.vid.gov.lv/lv/gada-parskati | 2026-10-30 |

likumi.lv did not respond on 2026-10-30, so the law texts were read from the Internet Archive copies dated above. VID pages were read live.

Not yet confirmed: the Micro-enterprise Tax Law itself (likumi.lv did not respond and the Internet Archive has no 2026 copy), so the micro-enterprise rules above come from VID's pages only.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-30. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `lv-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/lv-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.