Latvia vs Germany
Corporate Tax Comparison
Time of Update: Latvia: 4/04/2026 / Germany: 4/02/2026
Compare Latvia and Germany corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Latvia vs Germany Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Latvia
Germany
General CIT Rate:
20 (only payable when distributing profits).
General CIT Rate:
Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.
CIT Return Due Date:
The tax deadline is one month. If taxpayers are allowed to pre-order proof documents quarterly, the tax period is one quarter. If there is a tax base, the tax return should be submitted on or before the 20th day of each month (quarter).
CIT Return Due Date:
July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).
CIT Payment Due Date:
If there is a tax base, the tax payable should be paid on or before the 23rd day of the next tax filing period each month.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Estimated Payment Due Date:
No estimated CIT payment.
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
Withholding Tax (WHT)
Latvia
Germany
Resident Withholding Tax (Dividend/Interest/Royalty):
NA
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Latvia
Germany
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate tax rate.
Effective Tax Rate (ETR)
Latvia
Germany
Composite Effective Average Tax Rate:
17.00%
Composite Effective Average Tax Rate:
26.59
Composite Effective Marginal Tax Rate:
0.00%
Composite Effective Marginal Tax Rate:
11.00
