Financial Services, Latvia, Legislation, Taxation
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Thursday, 02.05.2024, 00:02
Latvian government upholds proposal for differentiated personal income tax
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Under the draft amendments to the Law on Personal Income Tax approved by
the Cabinet for the final reading in the parliament, the existing 23% tax will
be replaced by differentiated tax rates at 20%, 23% and 31.4%.
A 20% rate will apply to annual incomes up to EUR 20,000, a 23% rate will
apply to annual incomes from EUR 20,001 to EUR 55,000, and a 31.4% rate to
annual incomes of over EUR 55,000.
There will be a single 20% tax on capital income, including capital gains,
that would replace the existing 10% tax on capital income and the 15% tax on
capital gains.
Personal income tax will be levied also on cash lottery prizes, with the
exception of the Centenary Lottery, and gambling winnings worth more than EUR
3,000, but the lottery prizes in the form of goods and services will be exempt
from the tax.
The minimum non-taxable income for pensioners will be raised to EUR 250 a
month in 2018, to EUR 270 in 2019 and to EUR 300 in 2020 and beyond.
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