If the micro-enterprise tax rate changes, the mandatory social insurance contributions shall be paid for each employee

The State Revenue Service (SRS) recalls that as of 2017, the micro-enterprise tax rate is reduced to 5 per cent, and in accordance with the Law on State Social Insurance, mandatory contributions from the mandatory contributions facility, which may not be less than three quarters of the minimum monthly salary (380 EUR) determined by the Cabinet, should be paid for each employee of the micro-enterprise.
The compulsory contributions to the employee of the micro-enterprise shall be calculated by applying the mandatory contribution rate fixed for the worker and employer (in the general case 34,09 %).
A micro-enterprise taxpayer – an employer – if it will withdraw from the status of a micro-enterprise taxpayer, is obliged to inform his or her employees in writing not later than by 1 December 2016 that a salary tax will be withheld from the payroll tax and mandatory contributions to the Law on State Social Insurance in accordance with the procedures laid down in the Law on State Social Insurance by 1 December 2016.
It is recalled that the micro-enterprise taxpayer has the opportunity to change the tax status of the selected taxpayer and become a personal income tax payer or corporate tax payer. A micro-enterprise taxpayer may withdraw from the status of a micro-enterprise by 15 December 2016, submitting an application written in the SRS electronic declaration system (EDS). On the other hand, applying for another tax payment scheme can be the same, at any time, by submitting an application in the form of an electronic declaration system (EDS) in the FORM of a free form. Applications can still be sent by post.
More information on micro-enterprise tax is available on THE SRS website under “taxes” — “micro-enterprise tax”.
Information on other tax regimes is available on THE SRS website www.vid.gov.lv “first steps for future entrepreneurs” or “performers of economic activity”.
Details of the minimum mandatory contributions to the micro-enterprise taxpayer are available on THE SRS website www.vid.gov.lv “taxes” — “micro-enterprise tax” — “information and methodological materials” — “minimum national social insurance contributions to the employer — micro-enterprise tax payer”.
In case of questions and uncertainties, we invite you to call THE SRS tax and customs informative phone 67120000, go to any VID customer service centre, or ask questions in writing IN the SRS website section.
 
The information was prepared by:
SRS Public Relationship Part
Tel. 67122668, 67122670, 26351438, 26558389
email komunikacija@vid.gov.lv