Commercial Activity Income Account

1. Open a Commercial Activity Income account with Industra Bank – you will be able to use it starting from the date you obtain micro-enterprise taxpayer (MUN) status and apply for the simplified tax payment solution.
2. Register as a self-employed individual under the micro-enterprise tax regime with the State Revenue Service (SRS).
3. Apply for the simplified tax payment solution.

1. Apply for micro-enterprise taxpayer status by 15 December. Allow up to an additional five business days for the Commercial Activity Income account setup process.
2. Open Commercial Activity Income account with Industra Bank – you’ll be able to start using it from the beginning of the next year.
3. Ensure that you have applied for the simplified tax payment solution – this must be done no later than five business days before the end of the quarter.
4. Confirm that you are not a VAT payer or an employer.

1. Ensure that you do not have any outstanding micro-enterprise tax debts.
2. Open Commercial Activity Income account with Industra Bank – you can start using it from the beginning of the next quarter.
3. Check that you have applied for the simplified tax payment solution. If not, this must be done no later than five business days before the end of the quarter.

1. The taxpayer opens an account in Industra Bank.
2. The taxpayer applies in SRS EDS for the use of the specific current account as a Commercial Activity Income Account.
   • The application form is in the EDS section "Documents" - "From the form" - "Other" - "Iesniegums reģistrācijai SDI konta režīmā, konta maiņai vai izslēgšanai".
3. The SRS examines the application and checks whether the prerequisites are met.
4. SRS informs Industra Bank that the prerequisites are fulfilled.
5. Industra Bank converts the current account into Commercial Activity Income account and informs the SRS about it.
6. The SRS informs the taxpayer that the account operates in SDI mode.
7. From the date when the Commercial Activity Income account is registered, the taxpayer no longer completes the micro-enterprise tax declaration, does not calculate and transfer the amounts to be paid to the state budget. These actions are performed by the bank and SRS on his behalf. The taxpayer can focus on the most important thing - developing his business!

The process takes approximately 5 business days. 

The micro-enterprise tax rate is 25%.

The bank reserves and pays to the state budget 25% of each incoming payment to the Commercial Activity Income account.

You can find full information about the automatically paid tax in the Electronic Declaration System (EDS) section "Reports" → "Reports on tax calculations and advance payments" → "Report on micro-enterprise tax declaration data".
 

* Settlement period - from the moment of the last account servicing fee withholding until the last working day of the current month. 

• Service is available for private individuals registered with the State Revenue Service as a performer of economic activity and not registered as a value added tax payer, and the turnover does not exceed EUR 50 000 per year.
• All other fees are according to the Bank's price list for legal person customers - residents of Latvia.

• All income from commercial activity must be credited to the Commercial Activity Income account.
• Other revenues, not related to the commercial  activity, should not be paid into the Commercial Activity Income account, as the tax will be deducted from each incoming payment.
• An existing micro-enterprise tax payer can use the Commercial Activity Income account from the beginning of the next quarter, a new micro-enterprise tax payer – immediately after registration.