There is very well known folk’ s wisdom that good life is just only where we are not living, and that the better way to understand is to compare.
To understand how Latvia looks among other Baltic countries - Estonia and Lithuania, we have prepared information on the main tax rates in Estonia, Latvia and Lithuania, please see a table below.1
|
Estonia |
Latvia |
Lithuania | |
|
A. Personal income tax on employment income |
|
|
|
|
Tax rates (%) |
20 |
23 |
15 |
|
Not - taxable income (EUR) |
180 |
60 or 115 2 |
310 3 |
|
Not - taxable income (relief) for child (EUR) |
150 4 |
175 |
200 |
|
B. Social security payments |
|
|
|
|
Employer’s rate (%) |
33.8 |
23.59 5 |
27.28- 29.60 |
|
Employer’s health insurance contributions (%) |
- |
3 5 | |
|
Employee’s rate (%) |
1.6 (+2 or +3) |
10.5 5 |
3 5 |
|
Employee’s health insurance contributions (%) |
6 | ||
|
C. Real estate tax |
|
|
|
|
Rates for land (%) |
0.1 - 2.5 |
1.5 vai 3 |
0.01 - 4/0.1 - 4 |
|
Rates for buildings (%) |
- |
0.2 - 3 |
0.3 - 3 |
|
D. Value added tax (VAT) |
|
|
|
|
Rates (%) |
0, 9, 20 |
0, 12, 21 |
0, 5, 9, 21 |
|
E. Corporate income tax (CIT) |
|
|
|
|
Rates (%) |
0 or 20 5 |
15 5 |
5 or 15 5 |
1 Rates effective 1 January 2017
2 If person’s monthly income does not exceed 400 EUR, there are exceptions for disabled persons etc.
3 If person’s monthly income does not exceed 380 EUR, in other cases, depending on the amount of income in accordance with formula
4 A relief applies if a person has at least two children (for each child)
5
There are exceptions from a general rule
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