Among the Baltic countries, Latvia’s advantage is a non-taxable minimum for dependents, but we are inferior to our neighbors in terms of personal income tax (PIT). These are the conclusions of tax experts and entrepreneurs who evaluated the data of the Ministry of Finance on taxes in the Baltic countries in 2018.
At the same time, Latvia has problems with competitiveness due to taxes on labor, especially when it comes to expensive specialists and managers. Latvia is also unattractive from the point of view of the non-taxable minimum of the taxpayer, its size and the ceiling.
In Latvia, since 2018 there are three PIT rates: it makes up 20% for gross income up to 20,004 euros per year, from 20,004 euros to 55,000 euros per year – 23% and over 55,000 euros already 31.4%. Initially, everyone pays the smallest PIT rate.
