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Social Tax

Original Language Title: Par sociālo nodokli

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The Saeima has adopted and the President promulgated the following laws: The social tax, article 1. The terms used in the law, the law is applied in the following terms: 1) the socially insured person: person (employee or self-employed person family; a person whose employment is equivalent to work; physical person-resident, who is a labour relations with the employer — non-resident) that has reached 15 years of age, if it is done or about to be made social tax payments (if it is done and it is done in the social tax payments). The socially insured person is also the person who has the law "on State pensions" of insurance specified length of service;
length of service: 2) the insurance period for which a person is committing or has committed a social tax payments (the party itself has done and is done in the social tax payments), as well as to the law "on State pensions" certain periods;
3) self-employed persons: (a)), the host also persons carrying out business in the individual (family) enterprises, and entrepreneurs who generate income outside of work legal relationship with your company's management bodies and do not receive remuneration from them, b) persons carrying out individual work, c), (d)) of the servants cult people that receive royalties, e) person who receives payment in accordance with graudniecīb, the company and the contract of carriage, f) doctors notaries, lawyers, and other people who are employed and generate income independently;
4) self-employed persons family members: spouse, parents, children and other dependants, having reached 15 years of age and not in training day Division and are not employed in this family in the individual (family) business on a contract basis;
5) State social insurance fund: a government institution in accordance with the law on taxes and duties "is the social tax administration.
 
2. article. General social tax is a compulsory payment to the State social insurance special budget, which creates socially insured persons entitled to the following services: 1) retirement pension;
2) disability pension;
3) survivor's pension;
4) sickness benefits;
5) maternity benefits;
6) payments in the event of unemployment;
7) funeral allowance.
 
3. article. Social tax payer of social tax paid: 1) employer: any natural or legal person who employs staff and in accordance with the law on taxes and fees "are considered residents;
2) persons who, in accordance with the law on taxes and fees "are treated as residents and employment relations with the employer — resident;
3) persons who, in accordance with the law on taxes and fees "are treated as residents and employment relations with the employer — non-resident;
4) self-employed persons.
 
4. article. Social tax object (1) social tax taxable object is a socially insured person's working income, regardless of the form in which it is received, with the exception of this law referred to in article 6 of the non-taxable income.
(2) if the socially insured person is employed in gainful occupation, its income is any cash payments and of employers received material value that an employee's personal, family or farm purposes, without taking into account any deduction.
(3) a Person who enjoys working income outside of work legal relationship with the employer, calculate the revenue Cabinet. In this way, the estimated earned income must not exceed the Cabinet social insurance are subject to annual income.
 
5. article. Social tax rate (1) social tax rate is 33 percent of the tax object.
(2) if the socially insured person is employed in paid work, social tax, the employer and the employee (including an official candidate and officials) pay equal shares.
(3) the social tax payments by social insurance shall be determined by the Cabinet of Ministers.
(4) the cabinet shall determine the social insurance in the amount of income subject to the limits.
(5) in the first subparagraph within the rate does not include social security payments for accidents at work and occupational diseases.
 
6. article. With social non-taxable income With social tax is not liable for such income: 1) laws and other regulations laid down by the national pensions and the cost of the law and other regulations prescribed registered pension funds;
2) laws and other regulations certain benefits paid from the State budget and local budgets, as well as the Cabinet of Ministers established the Fund, including the temporary incapacity (sickness) benefits and maternity benefits;
3) laws and other regulations in the remuneration of guardian's duties, as well as the maintenance of the children in custody;
4) the payment of compensation by the Saeima or the rules established by the Cabinet of Ministers, other than compensation for unused leave, severance;
5) severance pay, which is paid in accordance with the labour code, article 37;
6) consideration for the health damage, if it results in the loss of functional capacity;
7) scholarships that certain laws to the extent of the training institutions are paid to students;
8) royalties paid to the law "on copyright and related rights" cases;
9) assistance in case of natural disasters or other exceptional cases where it is provided, based on State or local governments or authorities;
10) the consideration for the transfer of blood or other donorpalīdzīb;
11) employee or his or her relatives in the event of the death of the employer granted burial allowance, the value of which does not exceed 150 lats;
income exceeding 12) Cabinet of Ministers in certain social insurance income in the year the amount subject to the limits.
 
7. article. Social tax payer registration (1) article 3 of this law 1.3 and 4 above, the social tax is registered in the State social insurance fund register of employers using the State revenue service taxpayer registry database.
(2) the State revenue service within 10 days after registration the payer provides the State social insurance fund information needed for the Cabinet.
(3) the Registration shall take place in district (of the city) by the social security administration social tax payer location.
(4) legal persons are registered by their legal addresses, natural persons — permanent residence address.
(5) persons who have employment relations with the employer (employees) are recorded in the national social security fund in the district (of the city) in the management of social insurance at the employer's location (legal persons in their legal addresses, natural persons — permanent residence address) through his employer within 10 days after the conclusion of the contract.
(6) the social insurance administration registered social tax payers shall issue a statement of information to be determined by the Cabinet of Ministers.
 
8. article. Order in which calculations of social duty and made payments for employees (1) the employer shall be calculated pursuant to the social tax on earned income for each employee.
(2) the employer withholding tax and social payments for all employees make monthly deadlines, which are listed in the notice, issued in accordance with article 7 of this law the provisions of the sixth part.
(3) the social tax Paid the amount due from the employer account State special social insurance budget for payment shall be considered as the date when the payment from the bank noted down the employer's account.
 
9. article. Social tax payment arrangements and deadlines for self-employed persons (1) self-employed persons pay social tax on themselves and on their own farm or company workers of his family.
(2) the social tax amount for the quarter (three months) must be paid up to the 15th day following the month in the quarter.
 
10. article. Social tax payment arrangements and time limits for natural persons — residents who have employment relations with the employer — non-resident natural persons — residents who have employment relations with the employer — non-resident, the sort of social tax payments this law, article 9, second paragraph in the order and within the time limits.
 
11. article. The State social insurance fund's obligations (1) the national social security fund lists the social tax payments for each social insured persons.
(2) the social tax payments should be socially insured persons accounts only after proof of payment received.
(3) all listed social tax payments for every socially insured persons are summarized.
(4) the State social insurance fund once a year, the Cabinet of Ministers within the resort every socially insured person notice of the account.

(5) the socially insured person is to be used to identify your account in accordance with the law "On population register" ID code assigned.
(6) the national social security fund take over and manage the privatized the State Pension Fund of the capital transferred. Transactions with these votes and shares in the use, management and procedures established by the Cabinet of Ministers.
 
12. article. Social tax overpaid refund (1) during the year in excess of the social tax amounts the State social insurance fund will reimburse the social taxpayers two months last year to the end of the reporting period, with the consent of the payer or the next period-including social tax payments.
(2) If the taxable person social ceases its activities, in accordance with the existing legislation, social tax overpayment refunded within three months from the date on which the decision on winding up.
 
13. article. Social tax obligations (1) the employer is obliged to submit a report to the State social insurance fund for: 1) labour relations started;
2) labour relations;
3) each socially insured persons payments of social tax.
(2) the report shall be included in the form, and the deadline for the submission of information is determined by the Cabinet of Ministers.
 
14. article. Liability for violation of this law, (1) the social tax payments (also fine) amount (principal sum) is increased according to the Latvian Bank refinancing rate specified delay period.
(2) on payment of the tax arrears are recovered from the payer of the late — the principal sum outstanding from the time of 0.1 percent for each day of delay.
(3) the term of outstanding social tax, penalties and late payment of money recovered unchallenged agenda.
 
15. article. The State social insurance fund for material security (1) the State social insurance fund for the development and promotion of activities in accordance with the provisions of the Cabinet of Ministers uses 20 percent of the fines, the principal sum of money and delay the increase which: 1) in addition to the calculated checks, audit and control work;
2) credited to the State special social insurance budget after the Court judgment was made in cases where the claimant is a national social security fund.
(2) these measures should include the Ministry of welfare State social insurance fund budget of State special.
 
Transitional provisions 1 to State revenue service taxpayer registry creation and start-up of this law article 3, paragraph 1 of the social tax is registered with the Ministry of welfare registration number specified.
 
2. by the law on social insurance for adoption: 1) social tax is considered a social insurance contributions;
2) previous year's tax revenue in the social excess over social security spending is counted in next year's State budget for the special social security revenue and is used in accordance with the Parliament approved the annual State special social insurance budget.
 
3. Article 5 of this law, the first subparagraph shall enter into force by 1 January 2001, while the second part, by January 1, 2002.
 
4. Article 5, first paragraph, the date of entry into force of the social tax rate is as follows: January 1, 1996, 38 per cent of the taxable object;
by January 1, 1997, 37 percent of the taxable object;
by January 1, 1998, 36 per cent of the taxable object;
by January 1, 1999, 35 per cent of the taxable object;
by 1 January 2000, 34 percent of the tax object.
 
5. the second subparagraph of article 5, the date of entry into force of the proportion in which social tax paid by the employer and the employee (including an official candidate and civil servants) is the following: with the 1996 January 1, 37 per cent payable by the employer: 1 percent of the employee;
by July 1, 1996, the 33 percent paid by the employer: 5 percent — an employee;
with the July 1, 1997, 28 percent paid by the employer: 9 percent — the employee;
by 1 July 1998, 25 percent of pay to the employer: 11 percent — the employee;
by July 1, 1999, a 23 percent pay employer: 12 per cent — the employee;
by July 1, 2000, 20 percent of pay employers: 14 percent — the employee;
by July 1, 2001, 18 percent of pay to the employer: 15 percent — the employee.
 
6. Until such time as the determination of insurance indemnity will continue, giving entitlement to a retirement pension in accordance with the regulations "for retirement pensions" and "Regulations On Home Affairs and composed of the commanding ranks employee pensions (employer pensions) ', social tax rate (per person) to the person entitled to a retirement pension, is 51:1) percent of the taxable object, if the right to a retirement pension is obtained with the insurance indemnity to 20 years (inclusive). The proportion in which social tax paid by the employer and the employee, is the following: with the January 1, 1996, 50 per cent paid by the employer: 1 percent of the employee;
by July 1, 1996, 43 per cent of pay employers: 8 percent — the employee;
with the July 1, 1997, 42 percent of pay to the employer: 9 percent — the employee;
by 1 July 1998, 40 percent of the cost to the employer: 11 percent — the employee;
by 1 July 1999, 39 percent of employers will pay 12 percent — employee:;
by July 1, 2000, 37 percent of pay employers: 14 percent — the employee;
by July 1, 2001, 36 percent of employers: pay 15 per cent — the employee;
2) 43 percent of the taxable object, if the right to a retirement pension is obtained with the insurance indemnity, which shall not be less than 25 years. The proportion in which social tax paid by the employer and the employee, is the following: 1 January 1996 to 42 per cent payable by the employer: 1 percent of the employee;
by 1 July 1996, 35 percent of the cost to the employer: 8 percent — the employee;
with the July 1, 1997, 34 percent of pay to the employer: 9 percent — the employee;
by July 1, 1998, a 32 percent pay employers: 11 percent — the employee;
by July 1, 1999, 31 percent of the cost to the employer: 12 percent — the employee;
by July 1, 2000, 29 percent paid by the employer: 14 percent — the employee;
by July 1, 2001, 28 percent paid by the employer: 15 percent — the employee.
 
7. With the entry into force of this law shall lapse in the law "on social tax" (the Republic of Latvia Supreme Council and Government Informant, 1991, 3, 21 and 29. no).
The law will enter into force by 1 January 1996.
The Parliament adopted the law of 1995 on November 2.
1995 in Riga on November 23 the President g. Ulmanis