Personal income tax rate decreased in 2013 – 2015.

Law "On Personal Income Tax" states that the rate of tax to be paid from the annual taxable income is 25 per cent. The payer of the salary tax shall pay a rate of tax in the amount of 25 per cent from the monthly taxable income. Also from the income of economic activity the rate of tax to be paid is 25 per cent.

Saeima on 24th May, 2012, adopted amendments to law "On Personal Income Tax", which states taxable income tax rate reduction. Starting from 1st January, 2015, taxable income tax rate will be 20 per cent. Till that time, starting from 1st January, 2013 – 24 per cent, when calculating of personal income tax for fiscal year of 2013. Starting from 1st January 2014 – 22 per cent, when calculating of personal income tax for fiscal year of 2014.

If on fiscal years 2013., 2014. and 2015. employment income, pension or allowance shall be paid on the pre-year, this income is applicable with in the pre-existing personal income tax.

Law "Amendments to the Law" On Personal Income Tax "," (Latvian Journal, 88 (4691), 06.06.2012.). Amendments adopted in 24th May, 2012 (doc. nr. 906B) , and announced in 6th June, 2012( doc. nr. 115L/11).