Tax for the self-employed in Latvia, 2026 · Sole trader (IK)
An IK pays tax like any self-employed person
An IK is a natural person entered in the Register of Enterprises: the same income tax and contributions, the same quarterly report. What differs are the requisites — invoices carry the IK's name and registration number. Registering as an IK is mandatory once annual turnover exceeds €284,600. The single-entry journal is allowed while the previous year's turnover is at most €300,000; above that, double-entry bookkeeping is required, which Skaidrs does not do.
Sources
Checked 18.09.2026 An informative summary of the 2026 rules with links to the sources. It does not replace the State Revenue Service's guidance or an accountant — re-check the rates at the start of each year.
Skaidrs works this out from your own entries. Start freeOther topics
- Social contributions: 31.07% on the base, 10% on the excess
- Quarterly report: Report by the 17th, pay by the 23rd
- Annual declaration: 1 March – 1 June, tax by 23 June
- Allowances: €550 a month tax-free
- VAT: Register on passing €50,000
- The journal: Cabinet Regulation No. 322
- Expenses: Only with a supporting document
- Fixed assets: Over €1,000 — depreciation, not an expense
- Quiet quarters: No income, no report
- Ceiling: Contribution base capped at €105,300
- Micro-enterprise tax: MUN — 25% of turnover, expenses not deducted