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

According to the information from the Latvian State Revenue Service, at the beginning of May this year, there were 49,435 business operators registered in Latvia as payers of the micro enterprise tax.

Among all applicants, 40,027 were legal entities, 34,684 were individuals, and 2,947 were individual merchants.

Of these, 38,538 applications of legal entities, 33,369 applications of individuals, and 2,872 applications of individual merchants were approved, while 1,211 applications of legal entities, 635 applications of individuals, and 49 applications of individual merchants were rejected.

The micro enterprise tax at 9% of turnover was introduced in Latvia in September 2010. Starting from 2017, a 5% micro enterprise tax will be charged on small businesses generating up to 7,000 euros in annual turnover,micro enterprises with EUR 7,000-100,000 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%. Micro enterprises are allowed to have no more than five employees.