Corporate Income Tax (UIN) return for 2025 in Latvia: a practical guide
When companies hear “the UIN return for 2025”, they often assume a classic year-end corporate profit tax return. Latvia works differently: corporate income tax is typically triggered when profit is distributed (for example, dividends) or when the law treats certain items as a deemed distribution.
In practice, “UIN for 2025” means:
- Identify which 2025 tax periods included a taxable UIN object;
- Ensure the relevant period returns are filed correctly in VID EDS;
- Run a focused year-end review, because most issues surface there.
Core logic: distributed profit and deemed distribution
Latvia’s system is built around distributed profit and deemed distribution rather than annual taxation of accounting profit. That is why UIN work is mostly about identifying trigger events and documenting them.
Rate and coefficients (0.8 / 0.85)
The standard UIN rate is 20%. In practice, the taxable base is often calculated using a coefficient (dividing by 0.8; and in certain cases 0.85 for the 15% dividend regime). Official explanations are available via VID and the Ministry of Finance.
Deadlines (2025): filing vs payment
The official filing workflow, deadlines and EDS logic are explained in VID’s methodological guidance.
Operationally, treat filing and payment as two different milestones. Under the Single Tax Account, payment timing and account status matter for real-world compliance.
What regulates the return content
Cabinet Regulation No. 93 sets what information must be included in the UIN return and specifies key rules such as rounding.
VID’s methodological guidance helps apply these requirements in the EDS environment.
Practical risk areas (where mistakes usually happen)
- Dividends / advance dividends: decision date, payout date, and period alignment in EDS.
- Deemed distribution: expenses without a defensible business rationale or without a complete evidence chain.
- Related-party transactions: weak market-terms justification for pricing, interest rates, or conditions.
- Representation/entertainment and sensitive expense categories: missing purpose/participants documentation.
A filing workflow that works
- Confirm whether the period includes a UIN taxable object (dividends, deemed distribution, required adjustments).
- Prepare a defensible evidence pack and a calculation file (reproducible logic).
- Complete the EDS return following Cabinet Regulation requirements (structure, rounding).
- Validate period alignment with accounting records; avoid duplicates.
- Submit the return and keep the EDS confirmation + internal working files.
Corrections in EDS
VID provides an official correction flow: copy the previously submitted return, apply changes, mark it as a correction, validate and submit.
From a practical perspective, proactive corrections typically reduce risk and uncertainty versus waiting for questions.
Single Tax Account (VNK): why it matters
Payments are made into the Single Tax Account. If the company has other liabilities, the payment may be used to cover those first, which can affect whether the intended UIN amount is settled when you expect.
Quick checklist:
- We know which 2025 periods had a UIN taxable object.
- Dividend documentation is complete and aligned with the declared period (if applicable).
- High-risk expenses have a complete evidence chain.
- Related-party transactions are identified and can be justified.
- The return follows Cabinet Regulation requirements (including rounding).
- If errors exist, we submit corrections and align payments in the Single Tax Account.
References
- Corporate Income Tax Law (UIN law)
- Cabinet Regulation No. 93: Information to be included in the UIN return
- Law “On Taxes and Duties” (late-payment interest and Single Tax Account rules)
- VID methodological guidance (PDF): “How to complete the UIN return”
- VID: UIN tax rates and coefficients (0.8 / 0.85, etc.)
- VID: Single Tax Account (VNK) and payment timing
- VID: Corrections and amendments in EDS
- VID service page: Corporate income tax (UIN) return (EDS path)
- Ministry of Finance: UIN rates (general explanation)
Last updated 2026, February 13
