Бухгалтерский учёт и особенности подсчёта налогов для малых предпприятий в Латвии
Financial reporting and tax system for small enterprises in Latvia

Summary/Abstract: In Latvia, 99.5 % of all economically active enterprises are small and mediumsized entities. There are two systems of bookkeeping – single-entry bookkeeping and double-entry bookkeeping. Single-entry bookkeeping is allowed to all income tax payers, whose income in the previous year had been less than 200 000LVL (284 576 euros). If the taxpayer starts double-entry bookkeeping, it must be continued for 5 years. Double- entry bookkeeping is used by limited liability companies and by joint-stock companies irrespective of turnover. In accounting of receipts and expenditures of economic activities, there are used two main principles – the cash principle and the accumulation principle. Double-entry bookkeeping may be recommended to the payers of value added tax. The users of double-entry bookkeeping prepare financial statements. The users of single-entry bookkeeping prepare tax reports. The economically active persons in Latvia are subject to two kinds of income tax – the income tax and the corporate tax. Physical persons, carrying out economic activities with accounting for receipts and expenditures pay income tax of 15 %. Physical persons – taxpayers of fixed income tax – use preferential accounting. Since 2004, the rate of corporate income tax in Latvia is 15 %.

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