Daily magazine about Latvia www.latviannews.lv
Who will watch the watchmen?
Decimus Junius Juvenal
www.freecity.lv
Russian version

Micro-enterprise tax payers in Latvia can expect multiple legislative changes

Photo: pixabay.com
Latvian State Revenue Service reminds that 2019 marks the coming into force of multiple regulations in relation to micro-enterprise tax payers as part of previously implemented reforms.


In order for companies to retain their micro-enterprise tax payer status, employees of such companies will only be allowed to work in one micro-enterprise at a time. However, if an employee is employed in other micro-enterprises, those companies will have to add two percentage points to their existing 15% micro-tax rate for every such employee.
 

As of 2020, such companies will lose their micro-enterprise taxpayer status and will have to pick a different tax regime.
 

Employers can find out if their employee is employed in another company by asking them directly. It is possible to use SRS website to check whether or not the other employer of the employee in question is a micro-enterprise tax payer.
 

To keep micro-enterprise owners informed of their employees’ other jobs, SRS sent a notification regarding that to micro-enterprise owners on 6 February 2018 via EDS. Last year, SRS no longer registered micro-enterprise workers employed in other micro-enterprises.
 

It is also worth mentioning that the maximum annual turnover is not allowed to exceed EUR 40,000. For taxpayers whose turnover exceeds EUR 40,000 in 2018 and 2019 but does not exceed EUR 52,000 the law provides transition requirements. In those two years, such micro-enterprise tax payers are allowed to not apply 20% tax rate for turnover above EUR 40,000 if their turnover in 2017 or 2016 had exceeded EUR 40,000.
 

More detailed information regarding changes to the application of micro-enterprise tax regime is available on SRS website.

BNN

08-01-2019
Share:
Comments
Before the comment please read the rules of use our webpage.. Thank you.
Comment