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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 13:03

Proportionate non-taxable minimum in Latvia may be adopted by 2020

BC, Riga, 21.05.2015.Print version
The Finance Ministry in Latvia has worked out a proposal for implementing a proportionate non-taxable minimum, stipulating gradual adoption by 2020, reports LETA.

Today, the ministry's representatives presented a proposal, which stipulates that in 2016, as up to now, the monthly non-taxable minimum will remain EUR 75. In 2017, low-income earners will be able to receive the surplus tax. It will be recalculated by applying the proportionate non-taxable minimum.

 

Low-income earners, who earn EUR 380 a month, will be applied with a non-taxable minimum in the amount of EUR 100 a month. Those who earn EUR 380 to EUR 1,000 a month, will be applied with the proportionate non-taxable minimum, hence, the non-taxable minimum for a monthly salary over EUR 1,000 will be EUR 75 a month.

 

In 2017, the monthly non-taxable minimum would be reduced to EUR 60 a month. At the same time, the highest applicable non-taxable minimum would be increased to EUR 115 a month. In a period from 2018 to 2020, the monthly non-taxable minimum would be reduced by another EUR 20 a month every year – in 2019 to EUR 40 a month, in 2020 to EUR 20 a month, while in the following years the non-taxable minimum would be zero, the ministry has planned.

 

At the same time, the highest applicable non-taxable minimum will be increased to EUR 130 in 2018, EUR 145 in 2019, and EUR 160 in 2020.






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