Tax reform 2018 - snapshot
18 September 2017
The Government in August 2017 approved changes to the Latvian income tax system to stimulate reinvestment of profits and implement progressiveness in taxation of personal income. Estonian corporate income tax system has been the source of inspiration when it comes to overhaul of Latvian corporate income tax system. Implementation of progressiveness of taxation of personal income has been long discussed. Government hopes that the new system will help combating the grey economy and will be fairer.
As a piece of warning – whilst new Corporate income tax Act has been passed, it does not mean that it provides all the answers. We still have to wait for the Cabinet of Ministers rulings which are expected to clarify practical use of the law across broad range of matters.
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