Work productivity, competitiveness and the generation of investments are indices, in which Latvia trails behind other countries. The need for economic growth is evident. It can be done, by establishing a tax regime, which would serve as incentives to particular investments. The aim of this paper is to develop a concept for Latvia on corporate income tax in future. The objectives of this paper are: compare different corporate income tax principles, assess impact of corporate income tax on investments, productivity and other economic indicators and prepare suggestions for optimal taxation in case of Latvia. The method of this research is based on an expert survey and desk research, as well as on data analysis of economic activities. In order to promote Latvian competitiveness, enhance productivity, attract investment, increase state budget revenues in the long term, to simplify the payment of tax and reduce the administrative burden, it is proposed to introduce zero corporate tax regime for reinvested profit. This will encourage investment and productivity growth, develop the economy; it will lead to higher tax revenues (medium and long term) and will increase GDP. The solution will improve the company's financial indicators (liquidity, solvency), simplify tax administration, reduce opportunities for tax optimization, and improve the financial performance of companies.