Dividend tax
What a Latvian dividend costs in corporate tax, either way round, and what the shareholder gets. The tax sits on a grossed-up base, not the payout.
Dividend tax calculator
Latvian corporate income tax on a dividend, at the rates in the ledger of the corporate income tax guide.
- Reaches the shareholder
- EUR 8,000.00
- Taxable base, the dividend divided by 0.8
- EUR 10,000.00
- Corporate income tax, 20%
- − EUR 2,000.00
- Profit the company parts with
- EUR 10,000.00
- Tax as a share of the profit
- 20%
- Tax as a share of the dividend
- 25%
Both figures describe the same payment. The statute sets the tax as a share of the grossed-up base, and the larger one is what it costs against the dividend itself. A Latvian shareholder pays no further income tax on a dividend that has borne this. A very large distribution can reach the personal additional rate, which the founder compensation guide covers.
Every rate above is read from the ledger in Latvia Only Taxes Profit When You Take It Out, last checked 8 September 2026. That guide carries what a calculator cannot: who each rule does not apply to, what changes above a threshold, when a declaration is required, and what the figure is not.