Business, Financial Services, Latvia, Markets and Companies, Taxation

On January 1, there were 49,302 payers of microenterprise tax registered in Latvia, up 9,281 tax payers or 23.2 percent from January 1, 2015.

According to the State Revenue Service, starting from December 31, 2015, as many as 1,208 tax payers lost their status of microenterprise tax payers. The Finance Ministry explained that the status can be lost if the business operator chooses to pay regular corporate taxes or they fail to satisfy the eligibility criteria.

During the first three quarters of 2016, EUR 46.8 mln were collected in microenterprise taxes, which is by EUR 3.6 mln or 8.4% more than in the first three years of 2015.

As reported, Saeima supported amendments to the Microenterprise Tax Law in the final reading today, turning down several proposals calling for extending the microenterprise tax regime. The amendments stipulate that current microenterprise taxpayers, who will want to continue their business after December 31, 2018, will have to register as corporate taxpayers or personal income tax payers until December 15, 2018.

LETA also reported that more than 250 people participated in a rally at the Saeima building today, urging Saeima members not to liquidate the microenterprise tax.