UIN (corporate income tax)

UIN (uzņēmumu ienākuma nodoklis), officially translated as enterprise income tax, is the Latvian corporate income tax charged on distributed and deemed distributed profit rather than on profit earned. The rate is 20% of a base found by dividing the payout by 0.8, so the tax equals 25% of the net amount paid.

While profit stays in the company, no UIN is due. Tax arises when the company pays dividends or makes a deemed profit distribution: expenses unrelated to the business, doubtful debts, a loan to a related party, a liquidation quota and the other items the law lists.

The tax period is a calendar month, or a quarter for a company allowed to book its source documents quarterly. The return is filed with VID by the 20th of the following month; a period with nothing taxable needs no return, except the last month of the financial year.

From 2026 a company whose members are all natural persons may choose an alternative 15% rate on dividends, with the base found by dividing the payout by 0.85. Such dividends are then taxed at 6% IIN in the hands of the member.