Latvia’s State Revenue Service has issued updated guidance on the taxation of royalty income, with the changes taking effect January 1, 2026. The updates include revisions to minimum wage rates, social insurance contributions, and clarification on payments made by collective management organizations.
Royalty Income Taxation Updates in Latvia
The updated methodological material includes the 780 euro (US$914.61) monthly minimum wage rate for 2026. Clarification has also been provided regarding mandatory state social insurance contributions, including within calculation examples.
Further changes address royalties paid by collective management organizations and include increases to contract amounts in tax payment regime comparison examples. These increases are intended to more clearly demonstrate the differences between various regimes.
Revisions have also been made to material concerning minimum compulsory state social insurance contributions. Guidance on completing electronic individual tax and micro-enterprise tax forms is also included in the updated material.
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