Latvia Corporate Income Tax
Detailed corporate income tax rates and rules for Latvia in 2026.
Latvia adopted Estonia's distribution-based corporate tax model in 2018. Retained profits are not taxed. Distributed profits are taxed at 20/80 (20% on gross, equivalent to 25% of the net dividend). This applies to dividends, deemed distributions, and certain other outflows.
Standard Rate
20%
Additional Notes
Tax losses accumulated before 2018 can be used to reduce the taxable distribution base. Latvia also applies the distribution tax to non-arm's-length transactions, excessive interest payments, and gifts. The participation exemption applies to dividends from EU/EEA/treaty-country subsidiaries already taxed on distribution.
How Latvia Corporate Tax compares
Latvia’s corporate tax rate of 20% is the 127th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
