What you should know in advance of using the accounting services in Latvia?

Of course, before purchasing a company or having it in this Baltic state the main thing is to introduce with the Latvian Tax Legislation, with the basic taxes that are defined by a State. Let‘s start a general overview aboutaccounting services in Latvia.

-Payroll taxes – the salary is expressed in gross amount.In order to get the net amount one must deduct The Personal Income Tax(that is 24%0 and The Social Tax(11%).For non-residents working in this Baltic state the rules depends on the agreements Latvia has with the employees‘s country of origin. Payment also depends on what number of days non-resident worker is spending in Latvia.
-Corporate Income Tax – Latvia has a 15% flat Corporate Income Tax rate.
-Instead of paying before mentioned taxes like Social Tax, Personal Income Tax and Corporate Income Tax small enterprises can select to pay a Micro Tax in the amount of 9% their sales.
-Value Added Tax (or VAT) – standard rate of this tax is 21%. Most companies register for VAT automatically when establishing the enterprise.
-Property Tax – for commercial lands and buildings is 1,5% of the property‘s cadastral value, mentioned Tax for residential property ranges among 0,2% and 0,6%. There are more taxes that defined by the State like Capital Gains Taxes(15%),Vehicle Tax and other.

So, if you are planning to start a business and use the accounting services in Latvia, please be able to introduce and be well informed on local tax legislation.