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E-mail: info@fiin.lv

Microenterprise Tax (MET) changes from 01.01.2018

Micro-enterprise tax (MET) changes from 01.01.2018. -        The micro-enterprise tax (MET) rate will be 15%, but the maximum micro-enterprise turnover will not be more than 40,000 euros. -        The maximum wage for micro-enterprise tax (MET) workers is increased from 750 euros to 900 euro per month per worker. -        80% of the paid MUN will be diverted to the state social insurance compulsory deposit account.   MET mode can be used not only by existing MUN payers, but also by economic operators who meet the established principles.

Social Security Contributions (SSC) changes from 01.01.2018.

Social Security Contributions (SSC) from January 1st of 2018.     2017 2018 SSC total rate, of it: 34.09% 35.09% Employer rate 23.59% 24.09% Employee rate 10,5% 11%

Personal Income Tax (PIT) from 01.01.2018.

Personal Income Tax (PIT) from January 1st , 2018   Income, EUR per year 2017 2018 Bellow 20,000 EUR per year 23% 20% From 20,000 to 55,000 EUR per year 23% Above 55,000 EUR per year 31.4%* *In case of dividends distributed to individuals no personal income tax (PIT) apply   Eligible Expenses for PIT   Eligible expenses Current limitation of expenses Limitation of expenses as of 1 January 2018   Social security contributions (SSC) None None   Solidarity tax None None Contributions to private...

Corporate Income Tax from January 1st of 2018

Corporate Income Tax (CIT) -        CIT is payable on distributed profits (including deemed profit distributions); -        No CIT is payable on undistributed profits; -        CIT is payable on net amount ; -        CIT rate is 20% on the gross distributed amount or 20/80 on the net income; -        In case of dividends distributed to individuals no personal income tax (PIT) apply; -        CIT taxable period is 1 month.    

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...