Latvia Corporate Income Tax (UIN) Calculator
Determine Enterprise Income Tax under Latvia's 0% retained earnings regime: statutory 20% rate applied to grossed-up distributed profits (effective 20/80 = 25% on net distribution).
🏢 Peļņas sadales parametri (Distribution Input)
Summa, ko plānots reāli izmaksāt dalībniekiem bankas kontā.
Pretstatā reinvestētajai peļņai, pielīdzināti peļņas sadalei.
Latvijas modelī netiek aplikta ar nodokli (0% UIN).
📊 UIN aprēķina kopsavilkums (Tax Assessment)
| UIN deklarācijas pozīcija | Metodika | Summa (EUR €) |
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❓ Biežāk uzdotie juridiskie jautājumi (FAQ)
How does the Latvian Corporate Income Tax (UIN) system work?
Latvia operates an Estonian-style corporate tax model under the Enterprise Income Tax Law (Uzņēmumu ienākuma nodokļa likums). Undistributed and reinvested profits are subject to a 0% tax rate. UIN is triggered exclusively when profits are distributed as dividends or deemed profit distributions (non-business expenses, bad loans, transfer pricing adjustments).
What is the statutory and effective UIN tax rate on dividend distributions?
The statutory rate is 20%. However, because the tax is calculated on the grossed-up taxable base, the formula applies a coefficient of 0.80: Taxable Base = Net Distributed Amount ÷ 0.80. The tax payable equals: Net Distributed Amount × (20 / 80) = 25% of the net cash dividend.
Are shareholders taxed again when receiving dividends from a Latvian company?
No. When a Latvian company distributes dividends and pays the 20/80 UIN corporate tax, the dividends received by both resident and non-resident individuals are completely exempt from personal income tax (IIN).
What deemed profit distributions are subject to UIN?
Items treated as deemed profit distributions subject to 20/80 UIN include: non-operating business expenses, loans to related persons (above statutory safe harbor rules), extraordinary entertainment costs exceeding limits, and transactions with offshore tax havens.
When must the UIN declaration be filed with VID?
Under Section 17, the UIN declaration must be submitted via the State Revenue Service Electronic Declaration System (EDS / VID) and paid monthly by the 20th day of the month following the distribution month.
Engr. Muhammad Shahzad
Verified Baltic Statutory Systems & Fiscal SpecialistChartered Systems Engineer and Public Finance Modeler. Specializing in Baltic labor standards (Latvian Labor Law), State Social Insurance Agency (VSAA) architectures, Enterprise Income Tax (UIN 20/80 distribution model), and State Revenue Service (VID) tax schedules under Republic of Latvia statutes.