Taxes in Latvia, Taxation in Latvia, Taxes system in Latvia
The tax system in the Republic of Latvia operates in accordance with the recommendations of international financial organizations. The general tax rules and regulations established by law "On taxes and fees" (law "On Taxes and Duties") in 1995. Currently in Latvia uses the following types and tax rates:
corporate income tax (CIT) - 15%
value added tax (VAT) - 21%
income tax (PIT) - 23%
social tax (tax on compulsory social insurance)
Tax on land
tax on natural resources
tax on packaging
Customs Tax (discussed in the chapter on customs issues)
excise duty - from 1 February 2009 were revised excise rates on spirits, tobacco, fuel and also on papoje bezalkohole and coffee.
Tax Administration is carried out by the State Revenue Service. Local governments are involved in the administration of income tax, property tax and tax on natural resources.
Corporate income tax
According to the Law on Enterprise Income Tax "of 1995, this tax applies to all enterprises registered in Latvia, including foreign companies, and permanent representations of foreign companies. From 1/1/2004, the tax rate for all types of businesses is 15%. Small benefit from a tax reduction of 20% from the amount of input tax.
Income tax from individuals
The base tax rate is 23%. According to the Law on Income Tax of Individuals ", 1993, taxpayers are permanent residents of the Republic of Latvia acquire income in Latvia or abroad for the tax period, and not residents of the Republic of Latvia, Latvia acquire income. The tax is calculated on the basis of taxable income, payments are made monthly.
The annual tax return must be submitted by the taxpayer to 1 April the following year.
Value added tax (VAT)
According to the Law on Value Added Tax ", which entered into force in 1995, the tax shall apply to supplies of goods, services, imports of goods and consumption of own production company.
The standard VAT rate is 21%. Also applies a reduced VAT rate of 10%.
The tax base creates the annual amount of the total value of goods delivered and services rendered.