DECLARATION OF INCOME FROM ECONOMIC ACTIVITY

Till April 1, annual income declarations in SRS have to be submitted by residents of Latvia, carrying out an economic activity, including:

  • owners of individual undertakings, agricultural and fishery farms, individual merchants, if they are not paying the corporate income tax;

  • if activity related with performance of was carried out;

  • if professional activity beside employment relationships (for example, scientific, literary, lecturer’s, doctor’s, sworn advocate’s, sworn auditor’s, sworn notary`s, artist’s, consultant`s, engineer`s or architect’s activity) was carried out;

  • if maintenance of immovable property was carried out;

  • commercial agents and brokers.

Till April 1 (along with declaration), or within one month after starting the economic activity the performer of economic activity shall submit to SRS the calculation of amount of advance payments of the tax.

The order of determination of taxable income from economic activity is settled by the articles 11, 11.1 and 11.2 of the Law on Personal Income Tax. The order how the advance payments of personal income tax have to be paid is settled by the article 18 of the Law on Personal Income Tax (see the section „Laws and regulations”).

TAX RATE, FIXED TAX AND PATENT-FEES

From 2010 persons carrying out an economic activity are subject of general tax rate - 26%, bur there is a possibility to pay the PIT at fixed rates depending on amount of revenues (rate from Ls 25 to Ls 500, max Ls 500 + 7% of revenue (turnover) in excess of 10 thousand Ls). The fixed tax may be paid to the person, which complies with all the conditions:
• Person doesn’t have any employees;
• Revenue (turnover) should not exceed 10 thousand Ls;
• Person doesn’t carry out professional activity.

Also from 2010, when person carry out the economic activity in the Cabinet established professions, there is the opportunity to pay patent-fees (fixed amount per month, which includes PIT and social security contributions).

If a person wants to pay the fixed-income tax, he/she is required to inform the State Revenue Service till February 1st!

„INNOVATOR” LTD. will render you the tax consultancies in determination of taxable income from economic activity, as well as in composing and filling of annual declaration of income. In the section „PIT declaration form” you can fill an Annual declaration of income.

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