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Personal Income Tax (PIT) from 01.01.2018.

November 03, 2017   •  14:01

Personal Income Tax (PIT) from January 1st , 2018

 

Income, EUR per year

2017

2018

Bellow 20,000 EUR per year

23%

20%

From 20,000 to 55,000 EUR per year

23%

Above 55,000 EUR per year

31.4%*

*In case of dividends distributed to individuals no personal income tax (PIT) apply

 

Eligible Expenses for PIT

 

Eligible expenses

Current limitation of expenses

Limitation of expenses as of 1 January 2018

 

Social security contributions (SSC)

None

None

 

Solidarity tax

None

None

Contributions to private pension funds

10% from the annual taxable income

10% from the annual taxable income

Total amount of expenses shall not exceed 20% from the annual taxable income

215 €

Total amount of expenses shall not exceed 10% from the annual taxable income, but not more than 4 000 €  for a taxation year

Payments of life insurance premiums

Donations and gifts

Total amount of expenses shall not exceed 50% from the annual taxable income, but not more than 600 € for a taxation year, it is allowed to attribute the educational and medical treatment expenses to the income of the following 3 taxation years

Donations to political parties

Expenses for the use of educational, medical and medical treatment services by a taxpayer and its family members

215 €, it is allowed to attribute expenses to the following 5 taxation years

Expenses of authors of works of science, literature and art, discoveries, inventions and industrial models

From 15% to 40%, depending on the type of activity

25% and 50%, depending on the type of activity

 If you want to read more, please view the presentation: https://www.slideshare.net/InaraFuneaux/tax-reform-in-latvia-in-2018?trk=v-feed