The micro-enterprise tax is levied on the turnover of a micro-enterprise. The micro-enterprise tax rate is 9 percent (e.g. if the micro-enterprise’s turnover is 10,000, the micro-enterprise tax amount is LVL 900 [10,000 x 9%]).
If the micro-enterprise fails to comply with certain criteria set for it, it has to pay the micro-enterprise tax at a higher rate:

• if the number of employees at the micro-enterprise in a quarter exceeds five, two percent points are added to the rate of 9% per every additional employee;
• if the micro-enterprise’s annual turnover exceeds LVL 70,000, a tax rate of 20 percent is levied on the excessive amount of the turnover;
• if the income of an employee of the micro-enterprise exceeds LVL 500, a tax rate of 20 percent is levied on the amount that exceeds LVL 500.

• Micro-enterprise tax, which is paid by taxpayers to comply with the law “Corporate Income Tax”

  Valsts kase, Reg.No. 90000050138
  Valsts Kase, code TRELLV22,
  Account No. LV75TREL1060000721000

• Micro-enterprise tax, which is paid to economic operators registered individuals

  Valsts kase, Reg.No. 90000050138
  Valsts Kase, code TRELLV22,
  Account No. LV41TREL1060000722000

• Micro-enterprise tax, which is paid by other economic operators complying with the law “Personal Income Tax”

  Valsts kase, Reg.No. 90000050138
  Valsts Kase, code TRELLV22,
  Account No. LV07TREL1060000723000

The micro-enterprise tax is a tax that includes:

• mandatory state social insurance contributions, personal income tax and business risk duty for micro-enterprise’s employees;
• corporate income tax if the micro-enterprise falls under the criteria of a corporate income tax payer;
• micro-enterprise’s owner’s personal income tax for the income part of the micro-enterprise’s economic activity.

A tax payer who pays the micro-enterprise tax does not pay separately the personal income tax, the corporate income tax, the business risk duty nor the mandatory state social insurance contributions. The micro-enterprise tax as a single tax payment comprises all the tax types listed above.

Eligible for the payment of the micro-enterprise tax are micro-enterprises.
The following may become micro-enterprises:

• sole trader;
• individual enterprise, farm or fishing farm;
• natural person who is registered with the State Revenue Service as an economic operator;
• limited liability company.

To be eligible for the payment of the micro-enterprise text, the micro-enterprise has to comply with the following criteria:

• shareholders (if any) are natural persons. Shareholders in a limited liability company who are natural persons are also board members;
• the turnover in a calendar year does not exceed LVL 70,000;
• the number of employees at any time does not exceed five. Absent employees or discharged employees are not included in the number of employees.

Consequently, the aforementioned persons may choose to pay the micro-enterprise tax if they comply with the criteria regarding shareholders, turnover and the number of employees.

A micro-enterprise employee is:

• a natural person employed by the micro-enterprise on the basis of an employment agreement;
• the owner of the micro-enterprise.

The maximum number of employees in a micro-enterprise is 5 employees at any time during the year (the number of employees includes all its employees and its owner, but excludes absent employees or discharged employees).