Latvia: Government plans changes to labour taxes

The Latvian government plans to raise the personal income tax (PIT) for those with high income in 2025, LETA reports. Under the plan, the government will introduce an additional 3% PIT rate for those with income of over EUR 200,000 per year. The additional tax will apply to all taxable income, including capital gains. At the same time, the government plans to fix the PIT rate at 25.5% on income of up to EUR 105,300 per year. Also, the government will retain a solidarity tax of 33% on income above EUR 8,775 per month. Moreover, the government will raise the tax-free income threshold to EUR 510 per month in 2025, to EUR 550 in 2026, and to EUR 570 in 2027, LETA reports. Finally, the minimum wage will rise from EUR 700 to EUR 740 per month in 2025, to EUR 780 in 2026, to EUR 820 in 2027, and to EUR 860 in 2028.