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Saeima approves in principle raising microenterprise tax to 15%

BC, Riga, 15.12.2016.Print version
Saeima today approved in principle several bills that stipulate increasing microenterprise tax rate to 15% next year and scrapping minimum social contributions, writes LETA.

Voting for the amendments to the Microenterprise Tax Law were 59 MPs from the Union of Greens and Farmers, National Alliance, Harmony, and For Latvia From The Heart. Six members of the Latvian Association of Regions voted against the legislation, while Unity's eighteen Saeima members abstained. Likewise, the amendments to the Law on State Social Insurance were supported by 65 MPs as the eighteen Unity members abstained.


The amendments to the Microenterprise Tax Law stipulate setting the microenterprise tax rate at 15% and, starting 2017, transferring 70.4% of revenue from microenterprise tax into the state social insurance contributions account. From January 1, 2018, 80% of microenterprise tax revenue will be paid into the state social insurance contributions account.


Saeima is planning to pass the legislation in the final reading on December 20.

Earlier today, Saeima turned down amendments proposed by Unity, which suggested postponing minimum social contributions until September 1, not strapping them altogether, and allowing microenterprises to choose between paying full microenterprise tax (and no social contributions) or reduced tax plus social contributions for their employees.


Earlier this week, speaking to reporters after a meeting with Prime Minister Maris Kucinskis (Greens/Farmers), President Raimonds Vejonis said he was dissatisfied with the ruling coalition's work on tax legislation and went on to describe the situation as "a real mess". The president finds it unacceptable that new tax initiatives are being debated at the last moment instead of being prepared and discussed in due time.







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