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Latvia Provides Additional Exemptions from Thin Capitalization Rules and Alternative Tax Regime for Companies Exclusively Owned by Individuals

|Approved Changes|Latvia
Latvia

Latvia has published Amendments to the Corporate Income Tax Law, which were approved in December 2025 and entered into force on 1 January 2026. One of the main amendments is the introduction of additional exemptions from the thin capitalization (interest restriction) rules, including:

  • Interest on publicly traded securities issued in Latvia, the EU, or EEA, which are admitted to trading on a t…