The new Chapter XI 'Collection of the tax arrears of legal entities” has been added to the Law "On Taxes and Fees". Board members are responsible for the tax debts of the company, taking into account the folowing five criteria: 1) If the amount of tax in arrears is equivalent to 50 minimum wages (EUR 18 000); 2) That the decision to recover tax arrears has been sent to the entity; 3) After an accumulation of tax arrears any assets have been disposed of to the person concerned; 4) A document has been made stating the impossibility of...
From 1 January 2015 the following Microenterprise Tax rates will be applied for micro-enterprises with a turnover of more than EUR 7000 : - turnover of up to € 7,000 - 9%; - turnover from € 7,000 up to € 100 000 - 11%.
1. The general personal income tax rate from 1 January 2015 is 23 %. (2014, 24 %).2. In order to avoid future tax inequality with respect to persons receiving a pension under Latvian law, and persons receiving old-age pension in accordance with foreign laws and regulations, the law "On Personal Income Tax" stipulates that the general non-taxable minimum of 75 euros will be applied until the recipient will reach Latvian retirement age.3. Personal income tax relief for dependents will also apply to children under 19 years of age who are studying...
The government decided to increase the monthly minimum wage from EUR 320 to EUR 360 starting January 1, 2015. The decision to increase the monthly minimum wage will help gradually reduce income inequality in society.
From 1 July 2014 changes to the Commercial Law of Latvia allow companies to pay dividends (extraordinary dividends) from the profits of the current year. Only 85% of the profit from the current year may be paid out as dividends. Amendments to the articles of association regarding extraordinary dividends For the company to be able to declare extraordinary dividends, the company must first make amendments to its articles of association providing that dividends may be defined and calculated from the profit gained in current financial year. Amendments to...
