Update - Latvia Increases Maximum Social Security Contribution Basis as Part of 2022 Budget Impacting Personal Income Tax

As previously reported, Latvia's 2022 State Budget Law was approved on 23 November 2021. Further to the measures reported, the maximum basis for social insurance contributions from 2022 has been increased from EUR 62,800 to EUR 78,100.

Note, as per amendments to the Personal Income Tax Law effective from 2019, the maximum basis for social insurance is used as the threshold for the top personal income tax bracket. As such the 31% tax rate will apply for income over EUR 78,100. The lower tax…