Paying Microenterprise Tax in 2025 is beneficial

Tax application conditions that are favourable for Microenterprise Tax (MET) payers remain in force.

What is the Microenterprise Tax (MET)?

Since 2010, Latvia has had a Microenterprise Tax regime (MET) which, in essence, is a simplified tax regime with reduced administrative requirements and an easier tax payment procedure.

As a single tax payment, MET includes two key taxes:

• Mandatory State Social Insurance Contributions (MSSIC)
• Personal Income Tax (PIT) on the portion of income from economic activity

Who can become an MET payer?

The right to become an MET payer applies to:

• a sole trader
• an individual enterprise
• a farm or fishing enterprise
• a recipient of author royalties
• a natural person registered with the State Revenue Service (SRS) as a performer of economic activity

Main eligibility criteria

You may qualify for the MET regime if:

• the expected annual turnover does not exceed EUR 50,000, and
• the microenterprise does not plan to become a VAT-registered taxpayer until the VAT registration threshold is reached

MET rate in 2025

• In 2025, the MET rate remains unchanged — 25%, regardless of turnover.

At the same time, MET payers who also receive other PIT-taxable income may apply:

• the differentiated non-taxable minimum, and
• allowances for dependants

Quarterly filing and payment (EDS)

MET payers must:

• submit the quarterly tax return in EDS by the 15th day of the month following the quarter
• pay the calculated tax by the 23rd day of the month following the quarter, by transferring it to the Single Tax Account

Note / Contacts

This article is for informational purposes. For tax legislation application in a specific case, we recommend contacting our tax consultants:

• Phone: 67442838
• Phone: 26110067