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Dividend Tax Calculator 2026 —
CIT & PIT for Latvia LLC

Calculate taxes on Latvia LLC dividends in 2026. See the owner's net payout and compare dividends vs. salary — with real numbers.

CIT 20% + PIT 20% 0% CIT regime Dividends vs. Salary
€
Izmaksāt dividendes (nevis reinvestēt) Piemēro UIN 20% + IIN 20% brīdī, kad izmaksā
Ir zaudējumi iepriekšējos gados Var dzēst ar tekošā gada peļņu
Neto izmaksa īpašniekam
— €
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Uzņēmuma līmenis
Peļņa pirms UIN—
Atskaitāmie zaudējumi—
Apliekamā peļņa—
UIN 20%—
Peļņa pēc UIN (dividenžu bāze)—
Īpašnieka līmenis
Dividendes bruto—
IIN uz dividendēm (20%)—
Neto dividendes—
Kopējā nodokļu slodze—

Dividend Taxes for Latvia LLC in 2026 — Full Explanation

Latvia LLC dividends involve two tax stages: CIT 20% on taxable profit and PIT 20% on the dividend amount. The combined effective tax burden is approximately 36% of pre-tax profit.

What Is the 0% CIT Regime?

Latvia uses a unique CIT model: CIT is not due on retained earnings. As long as profits remain in the company and are reinvested, there is no tax. CIT only becomes payable when profits are distributed.

Dividends vs. Salary — Which Model Is Better?

Dividends are more advantageous when the company has stable profit and the owner does not need social insurance coverage. No SSIC applies to dividends.

Salary is better when social guarantees (pension, sick pay) are needed, or when company profit is small.

Optimal model for most LLC owners: minimum salary (€780 gross) + remainder as dividends.

Frequently Asked Questions about Dividends

Are dividends subject to SSIC contributions?
No. Dividends are not employment income, so SSIC does not apply. This is why dividends can be more tax-efficient than a high salary.
How often can dividends be paid?
Annual dividends can be paid after the annual report is approved (usually April–May). Interim dividends are possible if the articles permit and 6 months have passed since the last report.
How does Latvia's 0% CIT affect dividends?
In Latvia CIT is payable only when profit is distributed. If profit is reinvested, there is no CIT. The longer dividend payment is deferred, the longer the funds can be used for business growth.

Disclaimer — calculator results are indicative only

This calculator uses 2026 Latvia tax rates and provides an approximate result for informational purposes only. Results do not replace the professional advice of a certified accountant or tax consultant. Your individual situation (employment type, exemptions, international aspects, contract structure, etc.) may significantly affect actual tax amounts. Balansis (SIA Wonderstore) accepts no liability for decisions made solely on the basis of this tool.

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