APPLICABLE TAXES FOR WAGES IN THE BALTIC STATES

Abstract

The Baltic States are three small countries on the Baltic coast - Estonia, Latvia and Lithuania, which are united by their geographical location, many centuries-old history, as well as joint cooperation. Since 2018, a new tax reform has entered into force in Latvia, which is planned to be implemented gradually from 2018 to 2021. In Estonia, too, significant changes were made in tax policy in 2018. In Lithuania, the new tax reform was introduced in 2019, which, similarly to Latvia, will continue until 2021. Changes in all countries affected labor taxes, which in turn affected the calculation of wages. The study provided a theoretical description of wages, as well as labor taxes in the Baltic States, changes in their application and the impact on wages.