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Amendments to the Micro-enterprise Tax Law

Amendments to the Micro-enterprise Tax Law

On 26th of March 2015 the Saeima has adopted some significant amendments to the Micro-enterprise Tax Law during the second reading. The amendments are aimed to the identification of the specific types of business activities or fields, which will be entitled to be registered as micro-tax payers.

The aforementioned fields shall be determined by the Cabinet of Ministers of the Republic of Latvia before 15th of August 2015. It is planned that the new order shall enter into force on 1st of January 2016.

The amendments to the Micro-enterprise Tax Law have also determined the micro-tax rate amount. It will remain the same 9% during the first 3 years of carrying out business activity for the micro-enterprises, which annual turnover is from 7000,01 to 100000 EUR. The rate will be increased to 12 % from the turnover starting from the 4th year of carrying out commercial activity.

The last amendment is mostly aimed to reconsideration of the social insurance policy with regards to micro-enterprise's employees. It is planned that during 3-year period the total amount of the mandatory social insurance payments paid by the employer and employee shall reach the amount of social insurance payments paid from the minimum salary.

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