Taxes in Latvia
In Latvia, the progressive income tax rate is applied to the income of residents:
- An annual income of up to EUR 20,004 is subject to an income tax rate of 20%.
- An annual income of more than EUR 20,004 but not more than EUR 55,000 is subject to an income tax rate of 23%.
- The part of the annual income exceeding EUR 55,000 is subject to an income tax rate of 31.4%.
The income is subject to a tax-free amount and tax deduction for maintenance creditors.
It is pleasing to note that profits from a corporation (“SIA” comparable to a GmbH or LTD) are not subject to income tax. No income tax is payable on the distribution of the profits, an advantage that you will not find in almost any EU country.
99 % of our clients remain residents with their company after the successful insolvency due to the favorable and business-friendly tax.