Micro-Tax Law

Original Language Title: Mikrouzņēmumu nodokļa likums

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/215302

The Saeima has adopted and the President promulgated the following laws: a micro tax law article 1. The terms used in the law, the law is applied in the following terms: 1) micro: sole proprietor, sole proprietorship, or a fisherman's farmstead, as well as the natural person who is registered in the State revenue service as an economic operator or a limited liability company that meets the following criteria: (a)) members (if any) are natural persons. Society with limited liability members, natural persons — are also the members of the Board, (b)) in any calendar year shall not exceed 70 000 LVL, c) number of employees at any time is not greater than five. The number of employees does not include absent or disqualified from working staff;
2 the owner of the micro-micro) criteria by limited liability companies, individual business, farmers or fishermen, farm owner, sole proprietor, or other natural person established in the State revenue service as economic operator;
3) micro employee — individual who on the basis of the employment contract and employ micro micro owner;
4) micro-enterprise tax — tax, which include: a) State social security payments, the personal income tax and business risk duty on employees, (b) micro-enterprises), corporate income tax, if the micro meets the corporate tax bill signs, c) micro-enterprises the owner's personal income tax on micro-economic revenue share;
5-a micro) operating income;
6) micro staff income, the employee's income (measured in monetary terms, the value of money and the natural services received), which corresponds to the basic contract of employment income gained from it is by personal income tax and the State social insurance compulsory contribution deduction in General, application of the law "on personal income tax" and the law "on State social insurance".
2. article. Micro-enterprises the right to choose to pay a tax for micro-enterprises (1) micro-entities are entitled to choose to pay the tax, if the micro-enterprises comply with the limits laid down in this law.
(2) If a natural person is a member of several societies with limited responsibility, the right to choose to pay tax is just one of the micro-enterprises from these companies.
(3) If an individual is a member of the society with limited liability and farmers or fishermen, farm owner or sole proprietor or State revenue service registered economic operator, the right to choose to pay tax is just a micro one of the following forms of economic activity.
(4) micro-entities are entitled to choose to pay the tax, if the micro-micro employee income from tax paying microenterprises micro does not exceed 500 dollars a month. In this part of the tax-paying in micro micro employee income is dividends, calculated from the profit of this micro-enterprises.
(5) micro-entities are entitled to obtain taxable status of micro-enterprises, if agreed in writing by all the employees of micro micro tax. This arrangement as a separate provision may be included in the employment contract.
3. article. Micro taxpayer's obligation to inform employees of (1) a taxable person, the micro-switch to the employment contract, the applicant shall be informed in writing that the employer is a taxable person micro that micro-enterprise employee's personal income tax and the State social security payments are determined from the turnover and that micro micro employees shall have the right to voluntarily join the national social insurance, as well as the obligation to submit the micro payroll tax booklet. This information may be included in the contract of employment.
(2) micro-enterprises who want the next taxation period to become a micro-enterprise, the taxable person shall notify the employee in writing that the tax paying microenterprises micro employee's personal income tax and the State social security payments are determined from the turnover and that micro micro employees shall have the right to voluntarily join the national social insurance, as well as the obligation to submit the micro payroll tax booklet.
(3) a taxable person Micro with next taxation period the taxpayer's status will expire shall inform in writing the employees micro enterprises.
4. article. Tax exempt micro-enterprises (1) a Person is entitled in the register of companies at the same time with the application for an individual merchant, individual business, farmers or fishermen or the holding of the public limited liability company registry recording the relevant register log on micro on his status, stating that in the year, corresponding to a micro tax tax period: 1) estimated the number of micro-enterprises will not exceed five employees, and employees will be notified in accordance with article 3 of this law;
2 the expected turnover will be) to 70 000 lats;
3) micro-enterprise to pay micro tax.
(2) working days after the first paragraph of this article subject to registration in the business register electronically to the State revenue service information about application received microenterprise tax payer status.
(3) a natural person who, in launching economic activity, register with the State revenue service as an economic operator and choose to be a taxable person micro, simultaneously with the application for registration shall submit an application to the first paragraph of this article.
(4) micro-enterprises that want to get a micro tax payer's status until the year pirmstaksācij 15 December shall be submitted to the State revenue service application, which confirm the taxpayer's compliance with this law, article 1, paragraph 1, "a" section (if the micro-enterprise is a company with limited liability) and article 2 of the criteria set out in this article, as well as the conditions referred to in the first subparagraph in respect of the following tax period.

(5) the State revenue service within five working days of the receipt of the application for the micro-taxable status, or after this referred to in the second subparagraph of article information from the register shall decide on micro-enterprises as a micro or a registered taxable person the decision on refusal of registration, if the State revenue service has information that the applicant does not meet this statutory criteria and limits for micro-enterprises and should therefore not be granted to taxable micro status.
(6) If the State revenue service shall decide on the refusal to register as a micro-micro, the taxable person shall forward this decision to the taxpayer during the day following its adoption. If the State Revenue Service decides on micro-enterprises as a micro tax payer registration, then merged to micro micro taxable status is applicable from the date of national revenue received the application for tax paying microenterprises status, or from the date when the newly created micro-enterprise company register.
(7) micro-enterprise, subject to the fourth paragraph down, may become a micro tax with the next tax period January 1. Micro-tax payer is entitled to change the designated taxable status of micro-enterprises and become on the personal income tax or corporate income tax at the earliest before the end of the tax period.
(8) If a taxable person micro does not fulfil any of this law, article 1, paragraph 1 or article 2, second, third, or fourth part, it loses the status of taxable person micro-enterprises with the next tax period.
(9) a record of each micro-micro-State Revenue Service staff as a mandatory socially insured person, within the time limit set by the Cabinet of Ministers and in order.
5. article. Micro taxpayer's taxation period, with micro taxable object and tax calculation of micro-enterprises (1) micro taxpayer's taxation period is the calendar year.
(2) tax taxed micro micro-tax period.
(3) the tax calculation, micro-micro-tax period turnover multiplied by this law, in article 6, the tax rate for micro enterprises.
(4) if the tax paying microenterprises micro employee income exceeds this law article 2, fourth paragraph, the limit set in when applying the increase rate of micro-enterprises, the duty shall be levied from the micro-micro employee gained income which exceeds 500 part Lats per month.
6. article. The tax rate for micro-enterprises (1) micro-enterprise, the tax rate is nine percent.
(2) if the tax paying microenterprises in micro enterprises the number of employees in the quarter, more than five employees, the first part of this article specific rate plus two percentage points for each additional staff employed. If the number of employees in the micro-quarter variable micro-tax rate is determined by the maximum number of employees during the quarter concerned, taking into account employees who have completed not less than half of the quarter in question.
(3) a micro tax rate this law, article 1, paragraph 1 "(b)" States the turnover is in excess of 20 percent.
(4) If the employee's income exceeds the micro this law article 2, fourth paragraph, the limit set in, in addition to the first part of this article specific micro-tax rate applied to increase the tax rate of 20 percent of this law, article 5, in the fourth paragraph that the taxable object.
7. article. Micro-tax declaration and payment (1) micro-tax on turnover tax period micro paid four times a year for each quarter of the turnover.
(2) submit it to the national micro-enterprise revenue tax quarterly Declaration of micro-enterprises to the quarter following 15th date of the month.
(3) the micro-micro pays tax to the quarter following 15th date of the month the State revenue service home page on the internet in State budget revenue accounts.
(4) the tax declaration form Micro sample and fill the order is determined by the Cabinet of Ministers.
(5) clarification of micro tax return does not change the State social insurance compulsory contribution and distribution by the employees of their micro-enterprises for which clarification of micro tax return is filed.
(6) after the lost of micro micro taxpayer's status and has the right to submit just such a tax return within the micro-enterprise clarification that does not change or increase the amount of tax payable. Micro micro amount of tax in this case in addition to the contributions to the budget of this law do not apply the second subparagraph of article 9.
8. article. Micro distribution of tax procedures (1) the taxpayer's Micro-companies with limited liability, company or individual farmer or fisherman's farm, which the previous taxation period from business income pay corporate income tax, — reimbursing State budget micro-tax revenues the State Treasury shall be distributed as follows: 1) 0.1 percent including the business risk state charges account;
2 65 percent State) social security payment account;
3) 30 percent — personal income tax account;
4 4.9 percent) — a corporate income tax account.
(2) the taxpayer's micro-enterprises-natural persons registered in the State revenue service as an economic analyst, — reimbursing State budget micro-tax revenues the State Treasury shall be distributed as follows: 1) 65 percent including State social security payment account;
2 percent-35) individual income tax account.
(3) the taxpayer's micro-enterprises, individual business person, company or individual farmer or fisherman's farm, owned by the previous tax period of the individual enterprise, farmer or fisherman's farm income pay personal income tax, State budget micro paid tax revenues the State Treasury shall be distributed as follows:

1 0.1 percentage counted) business risk state charges account;
2 65 percent State) social security payment account;
3 percent — population 34.9) income tax account.
(4) the State Treasury until the 20th of the month following the quarter-to-date, as well as of the financial year, on the last working day including microenterprise tax revenues accounts according to the first, second and third part in the distribution.
9. article. The State social insurance compulsory contribution and registration (1) the tax debtor Micro micro is socially insured employees, starting with the day when he won the tax paying microenterprises micro employee status.
(2) according to the calculated State social security payment to the amount of the State social insurance agency calculates the State social insurance compulsory contribution object for a full calendar month (except in the case of tax paying microenterprises in micro enterprises the employee starts or ends work in micro-enterprises) for each tax-paying in micro micro micro proportionally to the employee of the tax return specified in the number of staff in each month and their actual income, applying the State social insurance compulsory contribution rate What are the employee is insured for all types of social insurance, the employee reached the age giving entitlement to the national pension, and the employee who is the beneficiary of a retirement pension or a disability — national special pension beneficiary.
(3) calculated the State social insurance compulsory contribution object rounded to LCY and cents, dropping the 0.49 centimes and less and to rounded to cents 0.50 cent and more.
(4) the State revenue service Cabinet duly submitted to the State social insurance agency of this law, in article 4, the information referred to in the ninth part of a micro tax quarterly Declaration and information about the calculated the State social insurance compulsory contributions.
(5) the tax paying microenterprises in micro-enterprises can voluntarily join the national social insurance, through social insurance contributions from a freely chosen income not exceeding this law article 2, fourth paragraph, the limit set in. The employee performs micro-State social security contributions voluntary social insurance of all types, but the tax paying microenterprises micro employee who has reached the age giving entitlement to State old-age pension, the national social security contributions voluntary national pension insurance, maternity and sickness insurance, parental insurance and occupational accident insurance, and tax-paying in micro micro employee who is the beneficiary of a retirement pension or a disability — national special pension beneficiary , the national social security contributions voluntary national pension insurance, work accident insurance, disability insurance, maternity and sickness insurance and parents insurance. The order in which tax paying microenterprises micro employees voluntarily joins a national social insurance, State social insurance contributions, volunteers and the contribution rate determined by the Cabinet of Ministers.
10. article. Employer responsibility for employee information (1) the employer regulations established are liable for false declarations, where the national revenue improperly assured a deal with employees that are micro a taxable person.
(2) the employer shall pay the tax paying microenterprises in micro-damages to the employee if the employer is not a validly informed the employees that the taxable person is a micro.
Transitional provision, the Cabinet of Ministers assess the practical implementation of this law, and results, in particular in relation to the State social insurance contributions and social insurance services for micro-enterprise employees, and up to 1 October 2011 to submit a report to the Parliament about it.
The law shall enter into force on September 1, 2010.
The Saeima adopted the law on august 9, 2010.
President Valdis Zatlers in Riga V 2010 august 19