Latvia Corporate Tax Calculator 2026
Calculate Corporate Income Tax (CIT) in Latvia. Retained profits are tax-free (0%). Distributed profits are taxed at 20% (effective 25% via the 20/80 formula). Micro-enterprises pay 12.5%.
Latvia Tax System
Corporate Income Tax in Latvia uses a unique reinvested profit system: retained earnings are not taxed (0%). Tax is only due when profits are distributed (dividends, bonuses, etc.) at a rate of 20% of the net distribution, which equals an effective 25% on the gross profit (calculated as 20/80 of the net amount). Micro-enterprises with turnover up to €125,000 may opt for a reduced 12.5% rate on turnover.
2026 Rates: 0% retained, 20% on distribution (25% effective), Micro-enterprise 12.5%.
Latvia Corporate Tax Calculator 2026
Calculate corporate income tax in Latvia 2026. 0% retained, 25% distributed (20/80), micro-enterprise 12.5%.