Commercial Activity Income Account

• When opening a Commercial Activity Income account, the self-emplyed no longer need to calculate and declare taxes. This will be ensured by the bank in cooperation with the State Revenue Service (SRS).
• All income from economic activities, including income received in cash, must be credited to the Commercial Activity Income account.
• All income credited to the Commercial Activity Income account is subject to microenterprise tax.
• A new economic activity initiator is entitled to start using this solution from the day of obtaining microenterprise taxpayer status and applying for the simplified tax payment solution. An existing microenterprise taxpayer - from the first day of the next quarter, an existing economic activity performer who has paid taxes under a different tax regime until now - from the beginning of the next year (however, the Commercial Activity Income account must be opened and the microenterprise taxpayer status applied for by December 15, allowing an additional five working days for the SDI account processing!).

You can open a Commercial Activity Income account remotely if you:

• are a private individual, over 18 years old;
• have a qualified electronic signature;
• have access to a computer or mobile phone with a camera.

Fill out the application, and a bank employee will contact you to arrange further steps.

• the taxpayer has registered the business activity with the State revenue service as a self-employed or with the The Latvian Register of Enterprises as an individual merchant;
• has no micro-enterprise tax debt;
• is a micro-enterprise tax payer, but is not a VAT payer;
• is not an employer.

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" - "Application for a simplified tax payment solution (SDI konts)".
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".
 

• 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.