Latvian Tax Trends for 2016
The new year brings new tax laws for most countries. Below we list the most important changes to the Latvian tax law that most closely apply to your business. We note that these have come with only a few tax increases. That once again proves that Latvia is still a popular and reliable EU location with reasonable company package set-up and maintenance fees.
So briefly, what has changed?
For those companies which have paid employees, please note that:
- The minimum monthly salary is now EUR 370 (it was EUR 360). Allowance on dependents is now EUR 175 per month per person (it was EUR 165).
- A solidarity Tax has been introduced for personal income over EUR 48 600 annually, where the tax will be increased to 23.59%+10.50%.
For those who have corporate vehicles, please note that:
- Only 50% of Value added tax for corporate vehicles expenses will be refunded (previously it was 80%).
- Corporate automobile monthly tax is now:
Engine volume up to 2000 cm3 = EUR 29 (it was EUR 27.03)
Engine volume from 2001 cm3 to 2500 cm3 = EUR 46 (it was EUR 42.69)
Engine volume over 2500 cm3 = EUR 62 (it was EUR 56.91)
Modifications to the law on the Annual Report and Consolidated Annual Report have been introduced, however, the changes will affect only financial reports starting from the 2016 year.
For detailed information on the new tax amendments, please do not hesitate to turn to your trusted IBCC Client Consultant or Accounting Advisor.
We always insure you get trustworthy expertise to help save you TIME and MONEY.