Microenterprise tax 9% from turnover

To be qualified for that kind of tax one should meet a number of criteria, such as the employee’s salary should not exceed 500 LVL per month (1 LVL is about 1, 43 EUR), their number is not more than 5 persons and the turnover of the company is not more that 70 000 LVL per year.

This tax replaces the taxes mentioned above (personal income tax, social security contributions, enterprise income tax) as well as business risk state fee. One could comply with the status of a microenterprise taxpayer if the legal form of a microenterprise is a Limited Liability Company, an individual merchant, or an individual merchant performing economic activity without a registration as an individual merchant.

Overview of Latvian taxes

For the foreigners to avoid the double taxation the amount of Latvian Income Tax can be reduced to that paid in the corresponding foreign country. Note! The according tax payment should be certified by a foreign tax-collection institution! Learn more about tax convention here and about the procedures of applying for tax relief here. Download the list of the countries with which Latvia has signed the tax convention here.

Microenterprise tax 9% from turnover

EU Countries

Non-EU Countries