In Latvia, the amount of relief for the dependent is 250 EUR a month.
This amount is not paid to the employee, this amount reduces the salary tax, it is considered when calculating the Personal Income Tax. If the employee has submitted the salary tax book and the child is indicated in it, this 250 EUR will be considered when calculating the VAT.
Example:
Bruto salary 1200EUR
Employee social tax 10,5% = 126EUR
Relief for the dependent is 250 EUR ( 1 child)
Personal income tax: (1200 – 126 - 250) *20% = 164,8
Employer social tax 23,59% = 283,08EUR
Submitter: Sara Abdelaal