Latvia MOF Proposes Individual Income Tax Amendments Under 2025 State Budget, Framework for 2025-2027

The Latvian Ministry of Finance Sept. 26 announced proposals to amend individual income taxation, as part of the 2025 state budget and the budget framework for 2025, 2026, and 2027. The proposals includes measures that would: 1) increase the monthly nontaxable minimum to 510 euros (US$567) for 2025, 550 euros (US$612) for 2026, and 570 euros (US$634) from 2027; 2) apply personal income tax rates of 25.5 percent on income not exceeding 105,300 euros (US$116,790) and 33 percent on income exceeding that amount; 3) introduce, from 2026, an additional 3 percent tax on annual income exceeding 200,000 euros (US$223,851), when ...