Social security rate in Latvia cut for 2014; income tax to remain at 24%

Saeima of Latvia, reading the amendments to several laws the final time, voted for retaining personal income tax in 2014 at the current rate, instead – bringing down social security obligatory contributions, and increasing tax breaks for those with dependants, also, increasing the non-taxable minimum.

For employees, the social payment rate will be decreased from 11% to 10.5%, for employers – from 24.09% to 23.59%.

The personal income tax rate next year will hold steady at 24% and be slashed to 22% in 2016.

Tax breaks for each dependant will be boosted from 80 to 116 lats next year (165 euro), while the non-taxable minimum will be raised from 45 to 53 lats (75 euro).