Latvia Tax Tables 2019 - Tax Rates and Thresholds in Latvia
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This page contains the tax table information used for the calculation of tax and payroll deductions in Latvia in 2019. These tax tables are used for the tax and payroll calculators published on iCalculator™ LV, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Latvia or would like to add to or suggest amendments to the information herein then please contact us.
2019 Tax Tables [Quick Links]
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Latvia Personal Income Tax Tables in 2019
The Income tax rates and personal allowances in Latvia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Latvia Tax Calculator 2019.
Latvia Residents Income Tax Tables in 2019
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 20% | Income from $ 0.000.00 | to | $ 20,004.00 |
| 23% | Income from $ 20,004.01 | to | $ 62,800.00 |
| 31.4% | Income from $ 62,800.01 | | and above |
Latvia Non-residents Income Tax Tables in 2019
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 20% | Income from $ 0.000.00 | to | $ 20,004.00 |
| 23% | Income from $ 20,004.01 | to | $ 62,800.00 |
| 31.4% | Income from $ 62,800.01 | | and above |
In Latvia, part of the social security contributions paid by employees can be deducted from taxable income. Specifically, residents are allowed to deduct the compulsory National Social Insurance Contributions (NSIC) paid on income that is subject to Latvian Personal Income Tax (PIT). These contributions are applicable in Latvia as well as in EU/EEA/Organisation for Economic Co-operation and Development (OECD) countries
This deduction is part of a range of personal deductions designed to reduce the tax burden on individuals. It's important to note that these deductions apply only to the portion of the social security contributions paid by the employee, not those paid by the employer.
Latvia Social Security Rates in 2019
In Latvia, both employers and employees contribute to the social security system. These contributions are designed to fund various social welfare programs. Here, we provide an overview of the types of social security contributions and what each element funds.
Latvia Social Security in 2019: Rates for Employers and Employees| Social security category | Employee | Employer | Total |
|---|
| Social Security | 10.5% | 23.59% | 34.09% |
| Solidarity Tax | 10.5% | 23.59% | 34.09% |
Latvia Social Security in 2019: Earnings Thresholds for Employers and Employees| Social security category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Social Security | n/a | n/a | n/a | n/a |
| Solidarity Tax | $ 78,100.00 | n/a | $ 78,100.00 | n/a |
Types of Social Security Contributions
- Pension Insurance: Contributions to pension insurance provide funding for retirement pensions. This ensures financial support for individuals upon reaching retirement age.
- Health Insurance: These contributions are used to finance the public healthcare system. It covers various medical services, treatments, and access to healthcare facilities for insured persons.
- Unemployment Insurance: This part of the social security contributions goes towards unemployment benefits. It provides financial assistance to individuals who are temporarily out of work.
- Disability Insurance: Contributions to disability insurance support individuals who are unable to work due to long-term health issues or disabilities.
- Parental Insurance: This insurance provides benefits to parents during maternity, paternity, and parental leave, ensuring financial support during early child-rearing periods.
Purpose and Benefits of Social Security Contributions
- Support During Retirement: Pension insurance helps maintain a stable income for individuals post-retirement, contributing to their financial independence and quality of life.
- Access to Healthcare: Health insurance ensures that individuals have access to necessary medical services without significant financial burden.
- Protection Against Unemployment: Unemployment insurance provides a safety net, offering financial stability during periods of joblessness.
- Assistance for Disability: Disability insurance supports individuals facing long-term health challenges, helping them to manage financial responsibilities.
- Support for New Parents: Parental insurance is vital in supporting new parents, allowing them to focus on childcare without undue financial stress.
Latvia VAT Rates in 2019
VAT rates for Latvia are reviewed annually, you can use the VAT Calculator to calculate VAT due in Latvia or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Latvia VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Zero Rated |
| 5% | Reduced Rate |
| 12% | Reduced Rate |
| 21% | Standard Rate |
Historic Tax Tables supported for Latvia
The following tax tables are supported by iCalculator™ LV as part of the suite of free tax tools we provide for Latvia.