Micro-enterprise tax in Latvia
To stimulate development to small and medium sized enterprises in Latvia , government of Latvia
Micro – enterprise tax is for different forms of merchants – individual merchants, farms, other natural persons that are registered as performers of economic activities, or limited liability companies that have chosen to accept the micro – enterprise status and who, under the law, may make only one tax payment.
The law allows small businesses to pay flat-rate tax of 9% on their turnover. The tax shall be paid four times a year on the turnover of each quarter
The flat-rate tax of 9% includes the following tax payments:
- social insurance mandatory contributions,
- personal income tax;
- entrepreneur risk state fee for employees;
- enterprise or corporate income tax if the micro-enterprise conforms to the features of enterprise income tax payer and
- personal income tax of owner of the micro-enterprise for earnings of micro-enterprise economic activity.
More you can read on our website: www.visas.lv
