Latvia: Tax measures in 2026 budget
Indirect and direct tax proposals submitted to Parliament
Latvia’s Minister of Finance on October 15, 2025, submitted the 2026 draft budget to Parliament.
The proposals would raise the basic individual allowance and minimum monthly salary, apply a 12% value added tax (VAT) rate to essential food products for one year starting July 2026, and increase excise duties and taxes on games of chance.
Draft amendments to corporate and individual income tax laws aim to promote investment, with most changes proposed to be effective January 1, 2026.
For more information, contact a KPMG tax professional in Latvia:
Ilze Berga | iberga@kpmg.com