Microenterprise tax (MUN)
In Latvian: Mikrouzņēmumu nodoklis (MUN)
Microenterprise tax (mikrouzņēmumu nodoklis, MUN) is a simplified Latvian tax of 25% of turnover that covers the owner's VSAOI and IIN on business income. It is open to individual merchants, individual enterprises, farms and people registered with VID as performers of economic activity who are not VAT-registered.
The tax is charged on all business revenue with no deduction for expenses, so it suits activities with low costs. You can opt in when registering the activity, or by 15 December for the following year, confirming that turnover will not exceed the VAT registration threshold of EUR 50,000.
The return is filed with VID quarterly by the 15th of the following month and the tax is paid into the unified tax account by the 23rd. Since 2026 a person whose activity is irregular may become a MUN payer for one or more quarters only.
Limited liability companies (SIA) lost MUN status on 1 January 2022 and became corporate income tax payers. If a microenterprise has employees, their pay is taxed with ordinary wage tax and VSAOI.
Example
Jānis, a photographer, pays MUN and earns EUR 6,000 in a quarter. His microenterprise tax is 6,000 × 25% = EUR 1,500, with no deduction for expenses. He files by the 15th of the following month and pays by the 23rd.
Legal basis
- Micro-enterprise Tax Law, Section 1 likumi.lv
- Micro-enterprise Tax Law, Section 6 likumi.lv
- Micro-enterprise Tax Law, Transitional Provision 36 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.