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Measure Name
Date when measure came into force
Cap of the taxable base 2014/01/01
Decrease of the rate 2014/01/01
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Generic Tax Name Social security contribution (Employers)
Tax name in the national language Sociālās apdrošināšanas iemaksas
Tax name in English Social security contributions
Member State LV-Latvia
Tax in force since 1990/12/18
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other
Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other
Social security contribution Employers
Employees
Other
 
Legal base

Law "On Social Tax" (in force from December 18, 1990 till December 31, 1997)

Law "On State Social Insurance" (in force from January 1, 1998)
 
Who sets
The tax rate is set by



The tax base is set by



The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope Territory of Latvia.
 
Taxpayers
The base or rate of social security contributions paid by Employers on the income of employees and of blue collar workers Rates are identical
Bases are identical

Comments
Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments

Comments

All employees who have reached 15 years of age employed by an employer - a domestic tax payer or other Member State tax payer, active mandatory military service soldiers, persons performing alternative service, persons taking care of a child who has not reached one and a half years of age, persons receiving unemployment benefits, unemployed disabled persons, persons receiving a maternity or sickness benefit for work incapacity, persons who receive child care allowance, persons whose spouse performs diplomatic and consular service in a foreign state and who stay in the relevant foreign state as a spouse of a person performing diplomatic and consular service, persons who are located in a relevant foreign state in the status of spouse of a soldier performing service duties, except in the cases where the soldier participates in an international operation, military training, manoeuvres or is on official travel, and a self-employed person shall be subject to mandatory social insurance.
 
Tax object and basis of assessment
Employers pay social security contributions for








Comments

An employee shall make mandatory contributions through his or her employer. The employer shall deduct the contributions to be made by the employee and pay them into a special budget account.
Child care (parental insurance). Maternity leave and work incapacity. Others - disability.
Base for all contributions listed here above is the same Yes No
As general rule, the income subject to Social Security Contributions of Employers includes























Comments

Basis of assessment:
Mandatory contributions of an employer and employee shall be all calculated employment income from which personal income tax must be deducted without deduction of the non-taxable minimum, tax concessions and eligible expenses for which the taxpayer has the right to reduce the taxable income.

From 2014 the taxable base for Social Security Contributions of Employees includes the income of a member of the board of a company of limited liability (except the micro-enterprise tax payer).
Income considered Domestic income
Worldwide income
Comments
Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employers












Comments

Comments

In accordance with the "Micro-enterprise tax law" the micro-enterprise tax rate is 9% from turnover and it includes state social contributions both for employees and proprietors, business risk state fee as well as personal income tax or corporate income tax depending on legal form of taxpayer. From 2015 after three years of being micro-enterprise, for the part of turnover exceeding 7,000 EUR a year, the tax will be applied at 12%.

 
Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units: 48600.0  EUR/Natcur
Cap in % of the tax base:
Reduction

The reduction is
No reduction
A lump-sum amount
In percentage of base:
     
Based on salary
Capped
Comments

The maximum taxable base for social contributions is set at EUR 48,600 per year for 2015 (from 1st January of 2009 to 31st December of 2013, no cap was applied).

 

Deduction:
The object of mandatory contributions shall not include the contributions made in favour of an employee by an employer in private pension funds in conformity with licensed pension plans and paid amounts of life assurance (with accumulation of funds) premiums which in total do not exceed 10 percent of gross remuneration calculated for the employee in the current calendar year, and paid amounts of life (without accumulation of funds), health or accident insurance premiums which in total do not exceed five minimum salaries specified by the Cabinet in the current calendar year, if:

1. the time period of the life assurance contract (with accumulation of funds) is not shorter than five years;
2. the time period of the life (without accumulation of funds), health or accident insurance contract is not shorter than one year;
3. the provisions of the life, health and accident insurance contract provide that the insurance indemnity for a case of insurance is paid to the insured person (or the beneficiary thereof), other amounts related to the operation of the contract or its termination shall be paid to the employer, and do not provide loan issuance to the insured persons.

The object of mandatory contributions of an employer and employee shall not include the contributions made in favour of an employee by an employer in private pension funds in conformity with licensed pension plans, paid amounts of life assurance (with accumulation of funds) premiums and paid amounts of life, health or accident insurance premiums (without accumulation of funds) in accordance with the provisions of the Law On Personal Income Tax.
Payments of mandatory insurance premiums of an employer in the cases specified in regulatory enactments when an insurance contract was entered into in favour of an employee shall not be the object of mandatory contributions.
Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments
Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
Social Security Contributions paid by Employers are tax deductible Yes No

Comments
 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employers
Pensions
16.88 %  From  EUR/Natcur  To  EUR/Natcur

Health care

Unemployment
1.45 %  From  EUR/Natcur  To  EUR/Natcur

Child care
0.79 %  From  EUR/Natcur  To  EUR/Natcur

Work-related illnesses and/or accidents
0.37 %  From  EUR/Natcur  To  EUR/Natcur

Education leave

Maternity leave
1.93 %  From  EUR/Natcur  To  EUR/Natcur

Others
2.17 %  From  EUR/Natcur  To  EUR/Natcur

Comments

If an employee has been insured for all types of social insurance, the mandatory contribution rate shall be 34.09 per cent from which an employer shall pay 23.59 per cent and an employee shall pay 10.50 per cent. The Social insurance mandatory contribution covers:

State pension insurance                                      24.39%            
Sickness and maternity                                         2.79%
Unemployment insurance                                     2.10% 
Parental insurance                                                1.14%
Disability insurance                                               3.14%
Work-related illnesses and/or accidents insurance    0.53%
Special surcharges

There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Comments
 
Tax due date

1. An employer shall pay mandatory contributions once a month into the social security budget account for each employee in the time periods indicated in the notification issued by the State Revenue Service.
2. An employee shall make mandatory contributions through his or her employer. The employer shall deduct the contributions to be made by the employee and pay them into the social security budget account.
 
Tax collector

State Revenue Service
 
Special features
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d6111

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,281.77 LVL 5.88
2011 1,179.80 LVL 5.83
2010 1,091.30 LVL 6.09
2009 1,140.63 LVL 6.06
2008 1,368.43 LVL 5.63
2007 1,328.41 LVL 5.89
2006 1,017.79 LVL 5.96
2005 790.06 LVL 5.82
2004 704.44 LVL 6.38
2003 640.84 LVL 6.72
2002 681.03 LVL 8.12
2001 635.90 LVL 8.53
2000 629.94 LVL 9.20
1999 549.44 LVL 8.76
1998 492.83 LVL 8.19
1997 441.71 LVL 8.19
1996 443.63 LVL 9.49
1995 441.18 LVL 10.88

Comments