The year 2024 brought notable updates to Latvia's tax legislation, aimed at improving transparency, supporting small businesses, and adapting to economic shifts.

Key Changes for Individuals

The tax rate on capital income (including capital gains) was increased to 25.5%.

An additional income tax was introduced:

Updates for Micro-Businesses

As of January 1st, 2024, a unified 25% tax rate applies to micro-enterprises, regardless of their turnover.

Corporate Tax Changes

Banks and credit institutions are now subject to an additional corporate tax:

Taxes on gambling were increased:

VAT Threshold Adjustments

The mandatory VAT registration threshold was raised:

These reforms are designed to reduce the burden on small businesses while maintaining fair taxation across sectors.