In 2016, Latvia joined the Organisation for Economic Co-operation and Development (OECD). Latvian government takes a range of steps to improve the economic legislation towards the best EU practices, including tax legislation area. These measures are meant to foster the economic growth of Latvia.
The joint-stock company Norvik Banka (hereinafter referred to as – the Bank) informs that as of 1 January 2018, within the framework of the tax reform implemented in Latvia, a range of new statutory regulations became effective. Tax changes concern both legal entities and private individuals.
Amendments to the Personal Income Tax Law, which may influence your savings, especially, the increased personal income tax rate (hereinafter referred to as – the Tax) on the capital income:
- if you have funds deposited, at the moment of crediting the accrued interest to the settlement account, the Bank will withhold the Tax from the interest income amount and transfer it to the budget of the Republic of Latvia – instead of the former 10% the Bank will withhold 20%;
- the capital gain tax rate increased from 15% to 20% – the tax on the income gained from asset disposal (including real estate, equities, capital shares, equity units, investment fund shares, debt instruments, gold and precious metals, as well as other instruments). The taxpayer itself bears responsibility for Tax payment;
- The Tax on dividends increased from 10% to 20%.
This information is solely informative.