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.