CIT (UIN) Declaration Deadline: 20th of the Following Month

Latvia's corporate income tax system is unusual by European standards: companies pay CIT (UIN — uzņēmumu ienākuma nodoklis) only when profits leave the company. Reinvested profits are taxed at 0%. This means that many SIAs go months — sometimes entire years — without filing a single UIN declaration. But the moment you distribute dividends, make a non-business expenditure, or trigger any other taxable event, the clock starts: you have until the 20th of the following month to file and pay.

What Triggers a UIN Declaration

Not every outgoing payment from your SIA creates a CIT obligation. The declaration is required when:

• Dividends are distributed to shareholders — the most common trigger
• Non-business expenses are paid from company funds (personal purchases, entertainment beyond limits, gifts exceeding thresholds)
• Transfer pricing adjustments apply to transactions with related parties at non-market rates
• Loans to related parties that are reclassified as deemed profit distributions

If none of these events occurred in a given month, you simply do not file a UIN declaration for that month. There is no "zero declaration" requirement.

The Rate and the Math

The effective CIT rate is 20/80 (25%) applied to the net distribution amount. In practice, if your SIA distributes EUR 10,000 in dividends, the CIT calculation is:

EUR 10,000 / 80 x 20 = EUR 2,500 in CIT

The total cost of the distribution is EUR 12,500 (EUR 10,000 to the shareholder plus EUR 2,500 to VID). The shareholder then owes no further tax on the dividend — it is already taxed at the corporate level.

File the declaration through VID EDS under "UIN deklarācija" by the 20th of the month following the distribution. Payment is due on the same date. Miss it, and the standard 0.05% daily interest applies.

A Common Mistake

Some SIA owners pay personal expenses from the company account without realizing this constitutes a taxable event. That lunch at a restaurant, the fuel for your personal car, the new laptop your teenager is using — all of these are deemed distributions if they lack a documented business purpose. VID auditors look specifically for these patterns, and the resulting UIN assessment plus penalties often exceeds the original amount spent.

---

CIT Declarations: Precision Matters

The line between a legitimate business expense and a deemed distribution is thinner than most business owners realize. One misclassified transaction triggers a 25.5% CIT charge plus interest from the original payment date. Our team reviews every potential CIT event before filing.

Get your CIT compliance checked →