Latvia, a country in Northern Europe, is bordered by Estonia to the north, Belarus and Lithuania to the south, the Russian Federation to the east, and the Baltic Sea to the west. Latvia is divided into 110 municipalities and nine cities, with Riga as the capital. The national language is Latvian, and the euro (EUR) has been the national currency since 1 January 2014.
The Republic of Latvia was founded on 18 November 1918. It has been continuously recognised as a sovereign state since 1920 despite occupations and rule by the Soviet Union (1940-1941, 1945-1991) and Nazi Germany (1941-1945). On 21 August 1991, Latvia declared the restoration of its de facto independence, re-established international diplomatic ties, and joined the United Nations (UN). Latvia joined the World Trade Organization (WTO) in 1998 and became a member of the European Union (EU) and North Atlantic Treaty Organization (NATO) in 2004.
The commercial environment is generally friendly to foreign companies, and EU directives are implemented and observed. The Latvian government has adopted modern laws establishing copyrights, patents, and trademarks and the means of enforcing their protection.
Telecommunication services are modern, and the real estate market provides modern housing and business venues. The legal system, tax structures, and trade and other regulations have been significantly modified to meet EU standards. Most EU directives have been transposed into Latvia’s national legislation.
Latvia’s economy is based on service industries, including transportation, information technology, and financial services. At the same time, the construction industry plays an important role, as well as wood, food, and light industries (e.g. textiles). Tourism is growing rapidly.
The PwC network unites 18,000 tax professionals situated at strategic locations around the world. PwC Riga offers a wide range of high quality services to local and international clients. Our staff have been recruited from different backgrounds, thus enhancing our capability as flexible and creative problem solvers. We offer specialist support in specific disciplines such as value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT), national social insurance (NSI), excise, customs and international trade, property taxation, international tax planning, and analysis of tax implications and transaction structuring.
In terms of tax risk management, we offer tax risk assessment, tax calculation review, transfer pricing services, and support in preparing appeals against tax rulings. We advise on EU customs and VAT rules and operational compliance with EU requirements. Our online tax service, MindLink.lv, offers weekly news in three languages, with analysis and comment on domestic and EU taxation.
In the area of employment and wealth taxation, we advise on employment taxes and remuneration packages, national social insurance, expatriate tax services, and visa and immigration services. We also provide client training, such as tailor-made courses on the general tax system and the EU indirect taxation system (VAT and customs), as well as regular surveys of tax legislation changes.
|Corporate income tax (CIT) rates|
|Headline CIT rate (%)||20 (payable only when profits are distributed).|
|Corporate income tax (CIT) due dates|
|CIT return due date||Taxable period is one month. If taxpayer is allowed to book supporting documents quarterly, the tax period is a quarter. If tax base arises, tax return should be filed each month (quarter) on or before the 20th day of the following period.|
|CIT final payment due date||If a tax base arises, the calculated tax should be paid each month on or before the 20th day of the following tax period.|
|CIT estimated payment due dates||There are no estimated CIT payments.|
|Personal income tax (PIT) rates|
|Headline PIT rate (%)||31.4|
|Personal income tax (PIT) due dates|
|PIT return due date||1 June or 1 July, depending on annual income level.|
|PIT final payment due date||1 June or 1 July, depending on annual income level.|
|PIT estimated payment due dates||16 June, 16 July, 16 August, 16 September, depending on the tax due.|
|Value-added tax (VAT) rates|
|Standard VAT rate (%)||21|
|Withholding tax (WHT) rates|
|WHT rates (%) (Div/Int/Roy)||Resident: NA;
Non-resident: 0 / 0 / 0;
Non-resident in tax haven: 20 / 20 / 20
|Capital gains tax (CGT) rates|
|Corporate capital gains tax rate (%)||Capital gains are subject to the normal CIT rate.|
|Individual capital gains tax rate (%)||20|
|Net wealth/worth tax rates|
|Headline net wealth/worth tax rate (%)||NA|
|Inheritance and gift tax rates|
|Inheritance tax rate (%)||NA|
|Gift tax rate (%)||Taxable as ordinary income unless exempt.|