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PIT relief for employee’s catering expenses in Latvia

From 1st of January 2017, Personal Income Tax (PIT) relief for employees catering expenses that had been provided by company and not exceeding 480 EUR per year, will be applicable if employer meets following conditions: 1)   catering costs that are borne by  employer not exceeding 5% of the total gross salary fund of the employer 2)   at least 6 employees must be  employed at the workplace 3)   the employer does not have tax debts that in total exceeds 150 euro 4)   employer has not been found guilty on offences related to illegal employment or work...

The minimum wage is EUR 380 in 2017

January 02, 2017   •   15:12

The minimum wage is increased from EUR 370 to EUR 380 in 2017. Non-taxable income is decreased from EUR 75 to EUR 60 (EUR 720 annually). However, the differentiated non-taxable minimum is applicable when the PIT declaration is submitted  and it is calculated regarding formula given in law. The average net salary in the year 2017 will cut about for 3.45 euros per month, because of 15 EUR decrease in non-taxable income (15 x 23% = 3.45 euros).

Micro-enterprise Tax rate increased from 01.01.2017.

January 02, 2017   •   15:08

  Amendments to the Micro-enterprise Tax Law: 1)      from 01.01.2017. the current micro-enterprise tax rate will be increased to 12% with an annual turnover up to EUR 7,000. 2)       the rate will be 15 % with an annual turnover of EUR 7,000.01 up to 100 000. 3)      from 01.01.2018. the micro-enterprise tax rate will be 15% for all turnover.

Law on Support for Start-up Companies

On Wednesday, 23 November, 2016 Saeima adopted in the final reading a draft law establishing a support program for start-ups, thus promoting their creation. The new law defines what a start-up is, as well as lays down the eligibility requirements for start-up companies to participate in state aid programs.  The new law stipulates that eligibility for state aid shall be granted to start-ups that have attracted investments of at least EUR 30,000 from qualified venture capitalists for the company’s equity in each year of applying for support, thus...

Criminal liability for the undisclosed payment of remuneration

April 18, 2016   •   11:51

The Amendments to the Criminal Code, which provides for criminal liability for the undisclosed payment of remuneration exceeding EUR 3700 that is not recorded in the accountancy system, have come into the force from 07.04.2016. The Amendments to the Criminal Code are providing series of changes in the criminal justice framework and have been supplemented with a new article, which criminalises the employer who pays wages, which are not shown in the books. The Amendments provide for a new legal framework for criminal legislation concerning the...