Tax regulations for micro-enterprises
Micro-enterprise tax in Latvia
The activities of micro-enterprises are governed by the Micro-enterprise Tax Law.
The entrepreneurship must be implemented in the following forms:
The following criteria also must be complied with:
Employees are engaged in a micro-enterprise on the basis of an employment agreement. Both natural persons and legal entities must pay the micro-enterprise tax.
The micro-enterprise tax includes:
A micro-enterprise may choose whether to pay the micro-enterprise tax provided that it complies with the following limitations stated in the Micro-enterprise Tax Law:
How to become a micro-enterprise taxpayer?
The status of a micro-enterprise taxpayer can be revoked by submitting an application to the State Revenue Service until 15 December of the pre-taxation year.
The taxation period for a micro-enterprise taxpayer is one calendar year. Calculation of the micro-enterprise tax The turnover of a micro-enterprise in the taxation period is multiplied by the tax rate of the relevant micro-enterprise (which is 9 %).
Consequences of failing to comply with the limitations
The micro-enterprise tax has to be paid four times per year for the turnover of each quarter. A micro-enterprise shall submit to the SRS a micro-enterprise tax declaration every quarter till the fifteenth day of the relevant month.