200
Happy Customers
10
Years of Experiences
Our accounting services in Latvia include both everyday accounting services and complex business activity support services, including relevant legal, tax planning, and other services.
We have been offering accounting services since 2012 and we are proud to maintain a dedicated team of qualified accountants. Our team also includes experienced tax consultants who specialize in company formation, business structuring, and a wide array of other tax-related issues, creating a seamless synergy within our departments. The accounting practice is led by Artūrs Breicis who is a member of the Latvian Tax Consultants Association and a member of the Association of Chartered Certified Accountants (ACCA).
It’s worth noting that the new Accounting Law came into force in 2022, encompassing provisions related to the licensing of outsourced accountants and the establishment of the outsourced accountant registry.
We are registered in the outsourced accountant registry of accounting service providers (Reg.No.: 40103493286). This registry holds information about accounting service providers who have been granted a license by the State Revenue Service to operate as outsourced accountants. It includes details about the responsible outsourced accountant, the professional civil liability insurance policy, and any updates regarding the status of the issued license, such as suspensions or cancellations.
The accounting services aligned with tax compliance, legal support, and transfer pricing constitute a wide range of our professional services. We differentiate ourselves from competitors in extensive experience in cross-border transactions. Our services include ensuring compliance with accounting requirements for permanent establishments of foreign companies, VAT compliance, and payroll compliance for non-residents. Accounting services are usually inter-related with the decision-making, therefore, our specialists are always keen to support you with relevant tax and legal information. We have extensive experience in accounting services, taxes, and commercial law.
Our daily accounting services in Latvia include:
- Supplying accounting services for the companies with local and foreign capital and permanent establishments or branches in accordance with regulatory enactments of legislation of the Republic of Latvia;
- Tax accounting, drawing up and submitting tax reports for state institutions;
- Representation in the State Revenue Service and other state institutions;
- Drawing up and submitting VAT returns;
- Drawing up annual reports;
- Statistics report for the Central Statistical Bureau, Bank of Latvia;
- Annual tax returns;
- Drawing up statements and reports for the members or shareholders.
We are easy to reach – BREICIS is located at Aspazijas Boulevard 24 in the heart of Riga, right beside the Grand Hotel Kempinski and directly across from the Latvian National Opera.
taxation planning
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We provide the company’s finance audit (reviews) and related services in cooperation with qualified auditors:
- Audit or review the company’s financial statement;
- Inspection of the internal control system;
- Inspection of the company’s reorganization;
- Inspection of reports on liquidation of the company.
All previously mentioned services are provided in accordance with International revision standards and laws of the Republic of Latvia.
Reliable Accounting Services in Latvia
Accurate and Timely Accounting Services
Personalized Accounting Services
Accounting services for legal entities in Latvia
Each company carrying out business activities in Latvia should prepare and maintain accounting records. Accurate accounting is one of the most important conditions for a company’s development. Accounting should reflect the entire economic activity of the enterprise, which influences the condition of the company’s assets and liabilities In accordance with the Latvian Accounting Law, accounting should be conducted in the Latvian language and kept in the territory of Latvia. As of 1 January 2014 accounting should be done in euro. Accounting documents must be provided to the State Revenue Service on request, for example, in case of the tax audit. Responsibility for accounting rests with the board of the company.
Annual report preparation
The reporting year includes 12 months and usually coincides with the calendar year. In case if a new enterprise is established, the first reporting year may include a shorter or a longer period, but no longer than 18 months. Companies have to prepare an annual statement in accordance with the Act, which includes the following sections:
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Participant decision or protocol statement from participants meeting with the decision on the confirmation of the annual report
Exceptions
When the organization is in complies with the certain procedure defined by the Law on Annual Statements and Consolidated Annual Statements and meets certain criteria, it is allowed not to prepare the separate parts of the annual report. In Article 92 of the Law on Annual Statements and Consolidated Annual Statements the following criteria are mentioned:
- Total balance – 400 000 euro
- Net turnover – 800 000 euro
- The average number of employees- 25
If the organization does not exceed two of these criteria, then it is permitted not to prepare:
- The Board report
- Cash flow statement
- Report on changes in equity
- Calculate and not to indicate deferred tax assets and liabilities in the financial statement
It is allowed to prepare a shortened appendix.
Document submission
The annual report must be presented to the State Revenue Service no later than one month after the approval of the annual report and not later than April 30. The company, whose activity size exceeds two mentioned criteria (i.e. total balance – 1 400 000 euro; net turnover – 3 400 000 euro; average number of employees – 250), and the company, which prepare consolidated annual report, submit annual report no later than July 31. Annual report is submitted to the State Revenue Service by using Electronic Declaration System (EDS).
Consolidated annual report preparation
A consolidated annual report is the annual report of the group that is prepared as a separate annual report of the enterprise, and provides information about all the group together, as one enterprise. In accordance with the Law on Annual Statements and Consolidated Annual Statements, the liability of the parent company is to prepare a consolidated annual report, if the parent company directly or indirectly received under the influence for at least one of the following statements:
A majority vote of shareholders or members (> 50%), based on the participation of its subsidiary in the allocation of capital (regardless of participation rate)
The right to appoint or remove the supervisors of subsidiary or majority of the members of the executive institutions (more than 50%), based on the participation of capital in subsidiary (regardless of participation rate)
The right to use mentioned in 1st or the 2nd points of law, based on an agreement concluded with other shareholders or participants or subsidiaries in accordance with the statutes of the organization (regardless of participation of the subsidiary company in the distribution of capital)
Parent company of the group may not prepare consolidated annual report, if that, along with its subsidiaries, do not exceed at least two of these criteria for two consecutive years:
- Total balance – 1 400 000 euro
- Net turnover – 3 400 000 euro
- Average number of employees – 250
Certified auditor revision
The prepared consolidated annual report of the parent group should be reviewed by one or more certified auditors. In cases, when the consolidated annual report of the parent company and a consolidated annual report is reviewed by the same certified auditor, and both reports submitted at the same time, the auditor’s review on the consolidated and the annual report and can be combined.
Document submission
A copy of the consolidated annual report, with the confirmed annual report and certified auditors review should be submitted to the State Revenue Service no later than one month after consolidated annual report confirmation, and no later than 7 months after the end of the year. As the annual report, it is submitted by using EDS.
Accounting services for individuals
We provide the following accounting services for individuals:
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Accounting services for permanent establishments and branches of the foreign companies
We have extensive experience in providing accounting and tax compliance services for branches of foreign companies and permanent establishments.
| As of 1 January 2014 accounting in Latvia should be done in euro. Accounting should be carried out in the Latvian language and kept in the territory of Latvia, but in case of a branch or permanent establishment, it is possible to use another language in addition to Latvian. |  |
Basically, branches and permanent establishments in Latvia have to meet the same accounting requirements as local enterprises. The accounting should record all the economic activities of a branch (permanent establishment) and also the activities of the foreign company which are attributable to the branch (permanent establishment). The accounting information should be true, clear, and complete. Accounting should account for income and outcomes for the purposes of taxation. However, branches and permanent establishments do not have to prepare a full annual report instead it is necessary to make the balance sheet and profit and loss account for the needs of corporate income tax.
Accounting documents must be provided to the State Revenue Service on request, for example, in case of an audit. If accounts use special codes, symbols, or single letters it is necessary to provide an explanation of them.
The person responsible for carrying out the accounting and retaining accounting documents, copies and images, is a manager In the case of a branch or the permanent establishment, a manager is a person, who is authorized to represent the activities of the foreign enterprise (non-resident), the branch of a foreign company, or a permanent establishment.
Detailed information regarding the registration of a permanent representation and order of tax payments is provided here.
Payroll services
Payroll services and payroll tax compliance are one of the most important components of our accounting services. We provide all the necessary payroll and payroll tax calculations for both local companies and employees of foreign employers who are employed in Latvia.
In some cases, companies outsource payroll accounting to companies to ensure in-house confidentiality. We ensure 100% confidentiality as well as reporting according to the client’s requirements and the law requirements.
For more information on Latvian payroll taxes, read the Payroll Calculator section of our website.
Accounting services for micro-enterprise taxpayers
Micro-enterprise tax can be paid by the owner of an individual company, farmer or fisherman’s business, individual entrepreneur, or another natural person engaged in economic activities, if these individuals are not registered as value-added tax payers, and the projected turnover does not exceed the value-added tax registration threshold.
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The micro-enterprise tax payer is only one person – the owner of the micro-enterprise, who has obtained the status of a micro-enterprise tax payer.
A micro-enterprise has the right to choose to pay the micro-enterprise tax if the legal restrictions stipulated by law are observed.
The income of a micro-enterprise employee is subject to personal income tax (wage tax) in accordance with the law “On Personal Income Tax” and employees are insured as employees in accordance with the “Law on State Social Insurance” in the general manner.
Micrenterprise tax rates
The object of the micro-enterprise tax is the turnover of the micro-enterprise. The micro-enterprise tax rate for turnover up to 25,000 euros per year is 25%, while for turnover exceeding 25,000 euros per year, it is 40%.
Latvian accounting requirements
Micro-enterprises should comply with the following regulations on accounting, which define specific requirements on accounting, depending on the legal form of micro-enterprises:
- The Accounting Law;
- Cabinet of Minister regulations 877 “Accounting regulations”;
- Micro-enterprise Tax Law.
The status of a micro-enterprise tax payer can be obtained:
- simultaneously with registration in the relevant register of the Republic of Latvia’s Commercial Register by applying for the status of a micro-enterprise tax payer;
- a natural person, simultaneously with registration as a business operator, submits an application for obtaining the status of a micro-enterprise tax payer to the State Revenue Service.
- individual merchant, individual company, farmer or fisherman’s business, a natural person registered as a business operator, by December 15 of the pre-tax year, by submitting an application to the State Revenue Service.
Registration applications can be submitted in the Electronic Declaration System (EDS).
The State Revenue Service (SRS) makes a decision to register a micro-enterprise tax payer or to refuse registration within five working days after receiving an application for obtaining the status of a micro-enterprise tax payer or after receiving information from the Republic of Latvia’s Commercial Register. This decision is made if VID has information that the applicant does not meet the criteria specified in the Micro-enterprise Tax Law.
What are your benefits by using our accounting services?
- Cost savings as no need to pay taxes from accountant’s salary, as well as no need to provide office equipment, computer software licensing and accountant training
- Guaranteed accountant services, which would be provided permanently regardless of the accountant change, vacation or other unplanned absence
- Experience – our experts work with various companies of different areas, as well as accounting services are provided in close cooperation with certified tax consultants
- Safety – our liability, while providing services, is insured
Ensuring cross-border accounting
We cooperate with companies, which provide accounting services and tax consulting in Estonia and Lithuania, thereby providing “one-stop agency” in Baltic countries. If it is necessary, in collaboration with an independent network providing accounting services, we provide high quality accounting services to most of the world countries.
Unlike companies which conduct business in integrated chains, our advantage is that we are not affiliated with a particular company in a particular country, but can optionally cooperate with the suitable company for customer satisfaction.
Prices for accounting services
Monthly prices for providing accountant services are determined individually for each client, depending on the industry of enterprise, the number of operations and degree of complexity of operations, the number of incoming and outgoing documents, and other factors. It should be noted that tax consulting for accounting clients are included with the accountant services.
