Latvia Corporate Tax Calculator 2026 (20%)
Estimate corporate income tax in Latvia on any profit: tax due, effective rate and profit after tax, with the 20% headline rate and the reduced rates in force in September 2026.
The calculation runs in your browser: nothing you type is uploaded or stored. Results are estimates for planning, not tax advice. Check your own case with your adviser or the tax authority.
Corporate tax rules in Latvia
Profit kept in the company (not distributed): a flat 0% on taxable profit. Profit paid out as dividends or deemed distributions: 20% of the gross amount (enter the gross profit distributed): a flat 20% on taxable profit. Optional from 2026: companies owned only by individuals, dividends to individuals (15% on net / 0.85, plus 6% PIT withheld): a flat 15% on taxable profit.
Tax year 2026 (monthly tax periods; tax arises only when profit is distributed)
0% on retained profit; 20% of the gross distribution (25% of the net dividend) when paid out
Who qualifies for the lower rates
- Deemed distributions (non-business expenses, bad debts, excess interest, certain loans to related parties, transfer-pricing adjustments) are taxed like dividends.
- The 15%/0.85 alternative regime from 1 Jan 2026 is optional and only for companies whose direct shareholders are all individuals.
- Micro-business tax (25%) is for sole traders/individuals, not companies.
Local taxes and minimum taxes
Credit institutions and consumer lenders pay an annual 20% CIT surcharge on prior-year profit regardless of distribution (since 2024). Pillar Two top-up for groups >= EUR 750m not modelled.
Filing and payment
Monthly return by the 20th of the following month when a tax base arises (return for the last month of the financial year is mandatory); tax paid by the 23rd
How the calculation works
The calculator applies the rates in the order the law does: band by band where a country taxes profit in slices, or one rate to the whole profit where eligibility decides the rate. Surcharges are applied to the tax, local business taxes to the profit. The result is an estimate: it does not include loss relief, tax credits, deferred tax or group rules.
Frequently asked questions
What is the corporate tax rate in Latvia?
Profit kept in the company (not distributed): a flat 0% on taxable profit. Profit paid out as dividends or deemed distributions: 20% of the gross amount (enter the gross profit distributed): a flat 20% on taxable profit. Optional from 2026: companies owned only by individuals, dividends to individuals (15% on net / 0.85, plus 6% PIT withheld): a flat 15% on taxable profit.
How much corporate tax is due on a profit of €100,000.00?
On a taxable profit of €100,000.00 this calculator estimates €20,000.00 of tax, an effective rate of 20%, before any credits, losses or local adjustments. Change the inputs above to model your own figures.
Who qualifies for the reduced rates?
Deemed distributions (non-business expenses, bad debts, excess interest, certain loans to related parties, transfer-pricing adjustments) are taxed like dividends. The 15%/0.85 alternative regime from 1 Jan 2026 is optional and only for companies whose direct shareholders are all individuals. Micro-business tax (25%) is for sole traders/individuals, not companies.
When is the corporate tax return due?
Monthly return by the 20th of the following month when a tax base arises (return for the last month of the financial year is mandatory); tax paid by the 23rd
Does the estimate include local taxes and minimum taxes?
Credit institutions and consumer lenders pay an annual 20% CIT surcharge on prior-year profit regardless of distribution (since 2024). Pillar Two top-up for groups >= EUR 750m not modelled.
Is the result my exact tax bill?
No. It applies the statutory rates to the profit you enter. Your real bill depends on how taxable profit is computed (non-deductible costs, losses brought forward, allowances), on credits and on advance payments already made.
Are these rates up to date?
They were checked against PwC and the other sources listed on this page on 30 September 2026. If a rate changes, type the new one into the rate field and the result updates at once.
Sources
- Latvia - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, authoritative corroboration; last reviewed 30 June 2026) — PwC
- Latvia - Corporate - Tax administration (PwC Worldwide Tax Summaries) — PwC
- Uzņēmumu ienākuma nodokļa likmes — Ministry of Finance of Latvia
Rates, bands and thresholds were checked against these sources on 30 September 2026. Tax rules change: if a rate has moved, edit it in the calculator above.
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