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

The committee also agreed that the amendments prohibiting micro-enterprises from operating in certain sectors would take effect in 2017, not next year as was planned originally.

Under the bill upheld by the committee in the first reading, the 5% micro-enterprise tax will be charged on small businesses generating up to 7,000 euros in annual turnover, micro-enterprises with 7,000-100,000 euros in annual turnover will have to pay a 5% tax for the first three years of their operation but, starting from the fourth year of operation, their tax rate will go up to 8%. But now the committee has approved for the second reading in the parliament the proposal that those changes would take effect in 2017.

The bill about micro-enterprise tax is part of the legislative package concerning the Latvian national budget for 2016, and its final reading in the parliament is scheduled on November 30.