Businesses are bound to observing certain regulations for accounting, financial transparency and recordkeeping and our accountants in Latvia can help with these requirements. Our extensive experience in the Latvian business and commercial environment means that your company will benefit from professional and sector-specific services, tailored to the needs of your company according to size and industry.
The services we provide for company registration in Latvia are accompanied by complete accounting and bookkeeping work.
|Types of services||
Our accounting services in Latvia include:
– financial consulting
Tax registration support
Our agents in Latvia provide tax registration support for local and foreign investors.
GST registration services
Our specialists help companies with GST registration.
|Payroll and HR assistance||
Our experts can be in charge with HR duties and payroll for companies.
|Audit services (Yes/No)||
Our auditors can offer professional services for companies.
|Financial statement filing services (Yes/No)||
Financial statement filing services available
|Corporate secretary services (Yes/No)||Our specialists can make sure that your company is complying well with the statutory and regulatory requirements.|
|Accredited accountants’ availability (Yes/No)||
|Personal income tax rate||
– a rate of 20% applies to an income up to EUR 20,004,
– for incomes between EUR 20,004 and EUR 78,100 the rate is 23%,
– any income over EUR 78,100 is taxed with 31%
|Corporate tax rate||15%|
|Social security contributions||
35.09% of the gross salary (24.09% paid by employer, 11% paid by the employee)
|Support for foreign companies||
Support regarding financial services in Latvia is available
|Access to double tax treaties (Yes/No)||
There are approx. 47 double taxation treaties
Other accounting services provided in Latvia include:
– forensic accounting,
– project accounting,
– management accounting, etc.
Table of Contents
Types of accounting services in Latvia
Successful businesses have a team of professionals and accountants in Latvia working together not only to achieve the business goals but also to make sure that the company complies with the ongoing laws for taxation and reporting, bookkeeping and the general accounting standards in the country.
The following types of services are provided by our team of experts and can be tailored to the needs of the business, according to the type of company, the number of employees and other criteria:
- Bookkeeping: complete bookkeeping and financial documents preparation and submission; our agents will handle the sales and purchase accounts, inventory and others.
- Payroll services: complete salary calculations for employees in Latvia for companies of all sizes.
- Audit: internal audit for companies that wish to maintain a credible corporate image by maintaining a transparent financial image.
- Consulting: a service tailored to the exact needs of the company, the business field in which it activates and the financial situation at the time of the analysis.
In special cases, our accountants in Latvia can also provide forensic accounting services. These are relevant when the client needs to determine the financial impact of special situations like fraud or loss. For this purpose, an expert will be hired to investigate from an accounting point of view the effects of the litigation. Forensic accounting is also important in business valuation.
Other types of special accounting services include project accounting – to determine the financial success of a particular project and management accounting – the internal analysis of the business, mainly of interest for the business managers.
Company formation in Latvia is a relatively simple process and, with the help provided by our experts, companies can start their specific activities in the shortest amount of time possible. Once the business is registered, out agents will start providing the needed accounting services. In addition to these services, if you are seeking the assistance of an incorporation specialist, the services of our agents are at your disposal. Please get in touch with our agents to learn about the company structures that the Latvian government offers. Once you pick a specific business, our agents will help you to set up a company in Latvia.
Accounting services for companies
Each business operating in Latvia is required to create and keep accounting records. One of the most crucial prerequisites for a company’s development is accurate accounting. Accounting should verify the company’s overall economic activity, which affects the state of its assets and liabilities. The Latvian Accountancy Act stipulates that accounting to be carried out in the Latvian language and held on Latvian territory.
The reporting year normally corresponds with the calendar year and has 12 months. The first reporting year for a newly founded business may span on a shorter or longer time frame, but it cannot exceed 18 months. According to the Act, businesses must create an annual statement comprising:
- Information on the business;
- Report from the Board;
- Sheet of balances;
- Statement of profits and losses;
- The flow of Funds Statement;
- Report on equity changes;
- A replica of the auditors’ report.
Besides accounting services for legal entities, you are also welcome to get in touch with our accountants in Latvia if you need these services for individuals.
Our experts will provide you with accounting services in Latvia efficiently. Furthermore, if you are unable to afford a commercial office in Latvia, you can get in touch with our agents. They can provide you with virtual office as needed for your business.
Accounting services for taxpayers with small businesses
Businesspeople can become micro-enterprise taxpayers under this particular taxing system. The micro-company taxpayer must meet the following criteria to be eligible:
- Net sales under 40,000 EUR;
- Maximum 5 employees;
- Each employee receives a wage of no more than 720 EUR per month;
- Only individuals are permitted to hold shares in the business, and they are regarded as the microenterprise company’s employees.
Tax return is the same for both legal persons and individual company owners in Latvia, however, the accounting requirements are different. The State Budget receives the micro-enterprise tax quarterly. The deadline for submitting the microbusiness tax return is on the fifteenth day of the month after the quarter. You can rely on the services of our accountants in Latvia if you hold a small business in Latvia. They can provide you with efficient accounting services in Latvia.
Furthermore, if you want to open a shelf company in Latvia, you can get help from our company incorporation consultants. They will not only provide you with expert consultation, but also with practical assistance for incorporation.
Accounting requirements in Latvia
Latvia uses the International Financial Reporting (IFRS) standards for domestic companies that trade securities in a regulated market. the use of the IFRS is not required for SMEs. The annual financial statements include the balance sheet, the profits and loss account, the annual report and all other notes to the accounts as needed. Auditing is mandatory only when the company has a net turnover and a total capital over certain amounts and the annual audit is to be performed by an official and registered accounting auditor. The Ministry of Finance is the authority in charge of establishing the accounting requirements and the guidelines for preparing the financial statements.
The Association of Accountants of the Republic of Latvia is the main professional organization for accountants that issues the Certified Professional Accountant Certification. Also please keep in mind, there are some exceptions to the general rule of creating an annual report for the companies. When an organization follows the guidelines outlined in the Annual Reports Act and satisfies certain requirements, it is permitted to skip preparing the individual portions of the annual report. The Annual Reports Act’s Article 54 outlines this standard. You are welcome to get in touch with our accountants in Latvia if you want to learn about the criteria for these exceptions.
How our Latvian experts can help you?
Our company formation experts offer also accounting services in Latvia. All of the services are provided following the laws of the Republic of Latvia and international accounting standards. If you need accounting services in Latvia, you can get an idea from the list of general services provided below. Our company formation agents in Latvia can assist you with:
- accounting services to businesses with both local and international capital as well as branches or permanent enterprises, in conformity with governing laws of the Republic of Latvia;
- preparing and submitting tax reports for state institutions, and tax accounting;
- preparation and submission of VAT returns;
- drafting of yearly reports;
- statistical report for the Bank of Latvia’s Central Statistical Bureau;
- tax returns on annual basis;
- preparing financial statements and reports for shareholders or members;
- financial statement audit or review;
- internal control system audit;
- company’s reorganization audit and reports on corporate liquidation.
In addition to these, our agents in Latvia provide services such as: assuring VAT compliance, payroll compliance for non-residents, and accounting compliance for permanent establishments of international enterprises. Since decision-making and accounting services are frequently intertwined, our specialists are always eager to provide you with pertinent tax and legal information. Contact our accountants in Latvia who provide a wide array of services for companies, tailored to the needs of local and foreign investors alike.
Furthermore, if you are planning to incorporate a branch office in Latvia, you can get assistance from our agents. Our company incorporation consultants can provide you with detailed consultation in this matter and also with practical support. You are also welcome to acquire services of our accountants in Latvia for your branch office.