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State Social Insurance Contributions and Microenterprise tax

September 25, 2015   •  13:04    •   Category: News

State Social Insurance Contributions and Microenterprise tax.

Tuesday, 22.09.2015, the Cabinet of Ministers of Latvian Republic considered and supported changes in Microenterprise tax law. According to the amendments to the Law on State Social Insurance the minimum compulsory state social insurance contributions will be introduced for microenterprise taxpayers - employees and employees.

The amendments to the Law on State Social Insurance come into force from 1 January 2016 which provides that for the micro-enterprise tax payer’s employees of state social insurance contributions should be made from the minimum mandatory social insurance contribution starting from 1 January 2017.

Change the micro-enterprise tax rate:

• micro-enterprise turnover to 7000 euros - 5%;

• micro-enterprise turnover from 7000,01 to 100 000,00 euros for micro-enterprise business activities of the first, second and third fiscal year after the micro-enterprise taxpayer acquiring the status of - 5%, from the business activities of the fourth fiscal year since micro taxpayer acquiring the status of micro-enterprises tax the rate of 8%;

In 2016 employers will be able to choose their own economic activity within the tax regime.

2017 will be a transitional period starting  mandatory social tax contributions from three-fourths of the minimum wage.

In 2018 the state social insurance contributions to be carried out of the full minimum wage (in 2015 the minimum wage is 360 euros, the full minimum mandatory social insurance contribution would be 122 euros).