Latvia's UIN (corporate income tax) model is unique in the European Union: 20 % tax only on distributed profit (dividends, gifts, non-deductible expenses), but 0 % on retained and reinvested profit. This model (similar to Estonia) encourages reinvestment and growth. 4b2b accounts for the distributable base, generates the UIN return, and submits it via EDS.
Our company has EUR 500,000 profit — do we pay 20 %?
Only on what is distributed. If you reinvest the entire profit (new equipment, offices, staff) → UIN = EUR 0. If you distribute EUR 100,000 as dividends → UIN = EUR 25,000 (20/80 gross-up).
We want to pay dividends to shareholders — how is UIN calculated?
UIN base = net dividend × 20/80. E.g., paying EUR 80,000 net → UIN = EUR 20,000 (total gross EUR 100,000). The platform calculates automatically and generates the UIN return.
Which expenses count as "non-deductible" and trigger UIN?
Non-deductible: undocumented payments, gifts above limit, entertainment without business purpose, fines, loan interest above market rate. The platform tags such expenses in the IRA ledger for correct declaration.
How often to file the UIN return?
Monthly return is mandatory if there is distributable profit or non-deductible expenses. Otherwise — annual return by 30 April of the following year. The platform tracks events and alerts before the deadline.
The entire 4b2b ecosystem is built for the Latvian market — from EDS declarations via MUN and UIN 20 % to GDLU reports and VID integration.
