15.01.2015. Changes of tax legislation in Latvia


From 1st Jaunuary 2015 there are following changes regarding taxation in Latvia:

  • Minimum salary increase from EUR 320 to EUR 360 per month and from EUR 1,933 to 2,166 EUR per hour.
  • Reduced personal income tax from 24% to 23%
  • Micro-enterprise taxes changed:

• 9%  rate if annual turnover does not exceed 7 000 EUR

• 11%  rate if annual turnover is from 7 000 until 100 000 EUR

• 20% rate if annual turnover exceeds 100 000 EUR

  • For companies having 1800 EUR turnover in a month and not having any employee or board member that receives minimum salary, there is now an obligation to calculate and pay at least minimum salary to the board member. This rule will not be applied to the calendar year of company incorporation.
  • An additional rate of 22% has to be calculated for the loan issued by enterprise to employees or board members.
  • Special value added tax calculation and payment rules will be applied to electronic service and telecommunication providers.
  • The leasing and credit service providers (except banks) will inform the State Revenue Service about individuals loan payments during the Information reffered the last year will have to be received by 1st February of the following year.
  • Starting with 2015, each year by 1st April the State Revenue Service will publish information on tax payers -legal entities taxes (that are administered by the State Revenue Service) amount paid and average number of persons employed in the previous tax