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Latvia working on new regulation for start-ups

Xinhua, November 25, 2015 Adjust font size:

The Latvian Economics Ministry is working on a new regulation which intended to make starting new businesses in the Baltic country easier.

Janis Endzins, chairman of the Latvian Chamber of Commerce and Industry, which participated in drafting the new legislation, said on public radio Tuesday that if the work goes smoothly and as planned, the new regulation should be in place in one year.

The new rules are badly needed both by would-be businesses and the already operating ones, such as small shops, Endzins said.

Karlis Sadurskis, chairman of the parliament budget and finance (taxation) committee, said that the new concept, which is being developed by the Economics Ministry, is likely to include simplified book-keeping requirements and lower taxes for the small businesses.

The Latvian parliament budget and finance (taxation) committee on Tuesday decided against a major overhaul of the existing tax legislation for micro-enterprises, leaving the rate of micro-enterprise tax at 9 percent for enterprises generating up to 100,000 euros in annual turnover.

Under new provisions, which will come into effect in 2017 and not 2016 as previously planned, small businesses generating up to 70,000 euro in annual turnover will be charged a 5 percent micro-enterprise tax. For enterprises generating 70,000-10,000 in annual turnover the tax rate will be 5 percent for the first three years of operation and will go up to 8 percent in the fourth year.

A provision banning micro-enterprises from certain sectors of the economy has also been postponed from next year to 2017. Enditem