Eesti Kaubanduskoda Lätis

Microenterprise tax set at 9% for first three years after company is established

24.04.2015

RIGA, April 23 (LETA) – Following amendments to the Microenterprise Tax Law that Saeima passed in the final reading today, the microenterprise tax will be 9 percent during a three-year period after a microenterprise is established.

67 ruling coalition MPs and Harmony members voted in favor of the legislation, whereas eleven members of the Alliance of Regions of Latvia and the For Latvia from the Heart party voted against.

The bill stipulates that microenterprise tax for enterprises with annual turnover from EUR 7,000 to EUR 100,000 will be 9 percent in the first three years, and 12 percent in the fourth and consecutive years.

The government will have amend the law on social insurance by January 1 next year, so microenterprises’ employees would be covered by social insurance and make social contributions that would be calculated based on the minimum monthly wage level.

If the government does not do this, microenterprise tax for enterprises with annual turnover from EUR 7,000 to EUR 100,000 will be 13 percent from January 1 next year, and from 2017 – 15 percent.

The government will also have to decide on sectors where companies will not be permitted to have the status of a microenterprise. The government will have to approve a list of such sectors by August 1.

 

Published: LETA