Latvia's headline corporate income tax (CIT) rate is 20 (on distributed profits only).
The headline personal income tax (PIT) rate is 36.
The standard VAT/GST (or equivalent consumption tax) rate is 21. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
A person is a Latvian tax resident if they have a registered (declared) place of residence in Latvia or are present in Latvia for 183 days or more during any 12-month period (using the OECD presence test - arrival/departure days, weekends, and holidays all count; only sub-24-hour transit between two foreign countries is excluded). Center of vital interests can also establish residency. Certain Latvian citizens employed abroad by the Latvian government are automatically resident. Residents are taxed on worldwide income; non-residents only on Latvia-source income. Note: since a 2018 reform, Latvia taxes corporate profits only upon distribution (all undistributed profits, active or passive, are CIT-exempt) - a structure similar to Estonia's, materially affecting how the 20% CIT rate should be read.
Latvia has separate CFC regimes for companies and individuals. For corporate taxpayers (per the CIT Act), a Latvian company owning more than 50% of a foreign company's shares, voting rights, or profit entitlement must pay CIT proportional to that share where the foreign entity is a non-genuine arrangement established for a CIT advantage with no substantial business carried on. For individuals, a CFC regime has applied since January 1, 2013: income from substantial participation (broadly 25%+ capital/voting rights or effective control) in a CFC located in a tax haven is taxed at progressive PIT rates, with exemptions for holdings through EU/EEA-listed companies.
Latvia applies a thin capitalization rule under which excess interest payments are treated as a deemed profit distribution subject to 20% CIT. Separately, Latvia has fully transposed the EU ATAD interest limitation rule: where annual interest expense on borrowings/finance leases from non-credit-institution lenders (outside Latvia, the EEA, or a DTT-partner country) exceeds EUR 3 million, the excess is restricted.
Latvia maintains more than 60 double tax treaties, covering all EU member states, the US, Canada, Australia, Switzerland, and Japan.