Latvia's ruling coalition agrees on more progressive personal income tax rate.
Latvia's ruling coalition today agreed to introduce a differentiated personal income tax at 20 per cent, 23 per cent and 31 per cent, Prime Minister Maris Kucinskis (Greens/Farmers) told the press after the meeting of the ruling parties today.
He said the ruling coalition had agreed on a tax reform model to be presented at the meeting of the National Trilateral Cooperation Council comprising representatives of the government, trade unions and employers on Thursday, June 29.
"The ruling coalition agreed to propose differentiated personal income tax rates. A 20 per cent rate will apply to the annual income up to EUROS 20,000, a 23 per cent rate will apply to the annual income between EUROS 20,001 and EUROS 55,000, and a 31 per cent rate will apply to the annual income above EUROS 55,000," the prime minister said. Under the earlier proposal, two personal income tax rates were to be introduced--20 per cent for the annual income up to EUROS 45,000 and 23 per cent for the annual income higher than EUROS 45,000.
The ruling coalition also agreed on a zero tax on reinvested profit so that Latvian companies would remain competitive. It is also planned to increase the minimum nontaxable income gradually.
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|Publication:||The Baltic Times (Riga, Latvia)|
|Date:||Jun 29, 2017|
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