Latvia: Special tax regime for consumer credit service providers held constitutional (court decision)

The Constitutional Court held that the regime is based on objective and rational considerations.

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May 13, 2025

The Latvian Constitutional Court on March 28, 2025, upheld the constitutionality of the special corporate income tax regime introduced in 2024 for consumer credit service providers. The court held that it is based on objective and rational considerations.

The regime requires a 20% tax on the previous year’s profits, regardless of profit distribution.


For more information, contact a KPMG tax professional in Latvia:

Ilze Berga | iberga@kpmg.com

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