Business, Financial Services, Latvia, Taxation

From September 1, 2010, when the micro enterprise tax was introduced in Latvia, till March 1, 2019, Latvian authorities received a total of 102,073 applications from tax payers seeking the status of micro enterprise tax payers.

Compared to February 2019, the number of micro enterprise tax payers decreased by 434.

According to the Revenue Service’s information, 48,970 applications were submitted by corporate entities, 49,447 applications were from individuals and 3,646 applications were filed by individual business operators

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Applications for the status of micro enterprise tax payers were approved in case of 46,892 corporate entities, 47,594 individuals and 3,531 individual business operators.

At the same time, 1,731 applications from corporate entities, 1,037 applications from individuals and 83 applications from individual business operators were rejected.

As reported, the Latvian parliament in July 2017 adopted amendments to the Law on Micro Enterprise Tax under which micro enterprises with annual turnover below EUR 40,000 will be paying a 15% tax, starting from 2018, and the 20% tax will be applied to the turnover in excess of EUR 40,000 with special rules applying during the transition period in 2018 and 2019.