Skip to main content

Latvia: Tax measures in 2026 budget

Indirect and direct tax proposals submitted to Parliament

Share
december 18, 2025

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

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline