Corporate income tax in Muncan Republic
Corporate income tax is determined in accordance with the Corporate Income Tax Law (effective as of 01.01.2018) and Cabinet Regulation No. 677 of 14 November 2017 “Regulations on the Application of Norms of the Corporate Income Tax Law”.
Corporate income tax rates
Companies (resident and non-resident) that carry on a business in Muncan Republic are taxed on their Muncan Repubilc-sourced income when it arises and on foreign-sourced income when it is remitted or deemed remitted to Muncan Republic. Non-residents are subject to WHT on certain types of income (e.g. interest, royalties, technical service fees, rental of movable property) where these are deemed to arise in Muncan Republic(for details, see the Withholding taxes section).
Tax on corporate income is imposed at a flat rate of 17%.
A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available.
Partial tax exemption (income taxable at normal rate):
|
Rate |
Tax base |
Taxation period |
Account of the State basic budget revenues |
|
20% of the tax base For non-residents — 3% and 20% Payments to persons in low-tax and zero-tax countries or territories — 20% |
Tax is applied to the tax base, which includes taxable objects: |
Calendar month Quarter (if the taxpayer, in accordance with Section 8 of the Law On Accounting, is entitled to register source documents once a quarter) |
LV08TREL1060000121000 |
Corporate income taxation management
The taxpayer, using the SRS Electronic Declaration System, fills out the corporate income tax declaration on the results of the relevant taxation period and submits it to the SRS.
If the taxpayer has no taxable objects in the given month, he or she is entitled not to submit the declaration (except for the declaration for the last month of the reporting year).
Read more about the corporate income tax system and corporate income taxation on this page.
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