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Changes in the micro-enterprise tax law in 2014

January 08, 2014   •   11:54    •   Category: News

  MICRO-ENTERPRISE TAX  The present additional micro-enterprises tax rate of 20% specified in the micro-enterprises tax law will not apply to excessive turnover exceeding the LVL 70,000 (EUR 99,601) threshold if the increase of turnover constitutes less than 30% compared with the pre-taxation period.    The additional micro-enterprises tax rate of 2% for each additional employee will not apply if the number of employees in a tax year exceeds five persons, and the number of employees increases by one or two persons compared to the pre-taxation year...

Tax rates and reliefs for 2014

January 08, 2014   •   11:51    •   Category: News

From 01.01.2014. Personal income tax rate will remain at 24 %. The social insurance contribution rate for employees will be set at rate of 10.50%, the rate for employer will be decreased to 23,59%. Taxable minimum of the personal income tax will be raised to EUR 75 per month. The tax relief to guardians will be EUR 165  per month. The minimum salary will be increased to EUR 320 per month. Payments made from the Maintenance Guarantee Fund for a child up to 7 years of age will be EUR 71,14, for a child between 7 and 18 years of age – EUR 78,26.

Corporate Income Tax (CIT)

January 08, 2014   •   11:49    •   Category: News

Revenue received by higher education schools, colleges and scientific institutions will not be included in the taxable income if it comes from: - Study fees for provision of professional secondary education, vocational education and higher education programs - Exhibitions and concerts - Independent research Research and development  The amendments provide for the definitions of “research and development” activities, “scientific staff” and “science technical staff.” In addition, it provides for the procedure for the deduction of the research and...

Luxury cars

January 08, 2014   •   11:47    •   Category: News

The definition of luxury car is amended to provide that a luxury car is a light motor vehicle designed to carry no more than eight passengers, with a value exceeding €50,000.

Income of non-residents from disposal of Latvian immovable property

January 08, 2014   •   11:41    •   Category: News

Currently, income derived by non-resident companies from the disposal of immovable property located in Latvia to a person subject to Latvian corporate tax is subject to a final withholding tax at a rate of 2% on the gross amount. Under the amendments, if these non-residents are residents of the European Union or residents of countries with which Latvia has a double tax treaty in force, and from whose income a final tax at a rate of 2% has been withheld, they may recalculate the tax on such income, by way of deducting the relevant costs and applying the...