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Thursday, 25.04.2024, 13:53
Lower personal income tax to apply to most employees in Latvia
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The Latvian government and the social partners agreed previously to
differentiate personal income tax depending on the size of income.
The Finance Ministry said at present there were 783,209 employees in
Latvia.
It has been agreed that a 20% rate will apply to the annual income of up to
EUR 20,000, which means that most employees will be taxed at 20%, the ministry
said, stating that 20.7% of all employees were paid a monthly wage below EUR
380, 14.8% got up to EUR 500 monthly, 36.4% earned up to EUR 1,000 and for 21.8%
the monthly salary was up to EUR 2,000.
If a person's annual income was between EUR 20,001 and EUR 55,000, a 23%
tax will apply but only a small proportion of employees earned as much, and few
made over EUR 55,000 annually in which case the personal income tax rate would
be 31.4%.
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