Latvia Stability Programme Report

28 MAIN CHANGES IN TAX LEGISLATION Key goals: decrease of income inequality and promotion of economic competitiveness 2021 2022 Increase of the income threshold up to which the differentiated non-taxable minimum is applied (from EUR 1200 per month to EUR 1800 per month) The rate of the compulsory state social security contributions is reduced (from 35.09% to 34.09%) A minimum social security contribution object for employees whose monthly income does not reach the amount of the minimum wage is introduced Reorganization of the micro-enterprise tax regime (the tax rate increased to 25% up to turnover of EUR 25'000 and 40% for the excess amount) Gradually increase of excise duty on tobacco products and changes in vehicle taxes, etc. Increase of differentiated non-taxable minimum and non-taxable minimum for pensioners (as from Jan-2022 EUR 350 per month; as from Jul- 2022 EUR 500 per month) Reduction of the VAT rate for books, press and other mass media issued in the form of printed or electronic publication (from 12% to 5%) and e- books, newspapers and periodicals and media content in digital format (from 21% to 5%) Inclusion of the employer's health service in the benefits provided for in collective agreements with a limit of 480 euros per year Increase of the maximum social security contribution object (from EUR 62'800 to EUR 78'100) Increase of the minimum salary from EUR 430 to EUR 500 in 2021 Source: Ministry of Finance

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