As of 2021, the patent fee tax regime will be abolished, but reduced patent fees will remain.
- For whom is the patent fee regime cancelled?
As of 1 January 2021, the patent fee tax payment regime is no longer available to those who operated in adherence to Cabinet of Minister Regulations No. 28 “Kārtība, kādā piemērojama patentmaksa fiziskās personas saimnieciskajai darbībai noteiktā profesijā”.
- What should I do if the patent fee has already been paid for a period of time in 2021?
Private individuals who have paid the patent fee for 2021 by 18 December 2020 will be able to apply the patent fee regime in 2021 for the period for which the patent fee was paid, but not later than 31 December 2021.
- What other tax regimes can I choose?
From now on, private individuals may opt for one of the other forms of economic activity and taxation regimes as follows:
- Partnership (general partnership and limited partnership)
- Capital company - limited liability company (SIA) and joint stock company (AS)
Tax payment options for self-employed private individuals:
- tax on income from economic activity
- reduced patent fee
- micro-enterprise tax
- de-register business and pay tax on income received
See I wish to start a business
Tax payments for businesses:
- Corporate income tax
- Personal income tax
- Mandatory State social insurance contributions
- Micro-enterprise tax
More information on registration and tax payment is available here.
- Who can continue to pay the reduced patent fee?
The reduced patent fee may be paid if:
- You receive a pension (including early retirement) and may apply the pensioner's non-taxable minimum
- You have a group 1 or 2 disability classification
- Your income from economic activity in the previous year did not exceed EUR 3000
- You are not a payroll tax payer
- You do not employ other people
- Your projected income from economic activities during the year will not exceed EUR 3000
A private individual may choose to pay a reduced patent fee if he or she is self-employed in one of the following:
- Leather and textile crafts
- Manufacture and/or repair of clothing and footwear, watches, and locks
- Household services
- Home care services
The reduced patent fee must be paid for six months or one year.
The term of payment of the reduced patent fee may not be less than six months.
The reduced patent fee is EUR 17 per year or EUR 9 euros per half-year.
- How can I become a payer of reduced patent fees?
Applications for a reduced patent fee may be submitted through EDS or in paper format not later than seven business days before the intended start of business.
It must also be paid for within the same period to the State - LV33TREL1060000300000.