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

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% in the first three years, and 12% 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% from January 1 next year, and from 2017 – 15%.

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.