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
