RIGA, July 28 (Xinhua) -- Latvian lawmakers on Friday passed a sweeping tax reform, which includes a number of measures coming into effect on Jan. 1, 2018, local media reported.
The Latvian parliament started debating the package of tax legislation on Thursday and finished their work on Friday. The tax reform has already been approved by the cabinet of ministers.
Latvian Prime Minister Maris Kucinskis noted that the final version of the tax reform is a compromise reached between the government and its social partners: entrepreneurs and trade unions.
Finance Minister Dana Reizniece-Ozola promised stability saying there were no new tax measures planned in the near future.
As of next year, the personal income tax rate will be cut from the current 23 percent to 20 percent for personal income not exceeding 20,000 euros per year (23,455 U.S. dollars).
The minimum monthly wage in Latvia will be raised to 430 euros from 380 euros next year, while the payment of the 20 percent corporate tax will be postponed until the moment a company's profit is distributed or spent on other purposes other than reinvestment in the company's own business.
The special reduced tax that is charged on microenterprises will be left at 15 percent, but the annual turnover limit for microenterprises has been reduced to 40,000 euros from 100,000 euros.
