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Latvia Tax Rates 2009 January 2009 From 1.1.2009 the new standard V.A.T rate in Latvia is 21%, compared to 18% in 2008. The reduced V.A.T rate for 2009 is 10%, instead of the 5% rate in 2008. The increase in the V.A.T rates follows EU pressure to increase taxes, a precondition for granting a loan to Latvia. The reduced V.A.T rate relates inter alia to medicines and public transport. Certain goods and services which were subject to a reduced rate in 2008 are now subject to the standard 21% rate. The list includes hotel services, books and water supply services. In 2009 the new personal income tax rate is reduced to 23%, replacing the previous 25% rate. There are also additional tax credits to disabled people. From 1.2.2009 there are new amendments relating to excise tax on petrolium products, alcoholic and non alcoholic drinks. Latvia Tax Rates 2008 February 2008 In 2008 the flat income tax rate for individuals is 25%, 15% for income from self employment. The corporate income tax rate is 15%. The standard VAT rate in Latvia is 18%. There is also a reduced rate of 5%. Latvia Income Tax 2006 JANUARY 2006 From 1.1.2006 the monthly personal free allowance is LVL 32, the monthly deduction for a dependant relative is LVL 22. Latvia Tax 2004 JULY 2004 The government decided to reduce Latvia corporate income tax rate to 12.5%, as in Ireland. The new rate is due by July 2006.

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