Latvia vs Estonia
Corporate Tax Comparison
Time of Update: Latvia: 4/04/2026 / Estonia: 4/05/2026
Compare Latvia and Estonia corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Latvia vs Estonia Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Latvia
Estonia
General CIT Rate:
20 (only payable when distributing profits).
General CIT Rate:
Estonia does not tax retained earnings. Distributed profits are taxed at a rate of 20%. A reduced rate of 14% applies to regularly distributed dividends. From 2025, the general rate for distributed profits will increase to 22%.
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:
Corporate income tax is assessed and declared monthly.
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:
CIT on distributed profits is payable upon distribution.
CIT Estimated Payment Due Date:
No estimated CIT payment.
CIT Estimated Payment Due Date:
Not applicable as tax is only due on distribution.
Withholding Tax (WHT)
Latvia
Estonia
Resident Withholding Tax (Dividend/Interest/Royalty):
NA
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Latvia
Estonia
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
Estonia does not have a separate capital gains tax; gains are taxed as regular income at the corporate rate when distributed.
Effective Tax Rate (ETR)
Latvia
Estonia
Composite Effective Average Tax Rate:
17.00%
Composite Effective Average Tax Rate:
17.0%
Composite Effective Marginal Tax Rate:
0.00%
Composite Effective Marginal Tax Rate:
0.0%
