From 6 October 2022, individuals with registered business activity – micro-business taxpayers have access to the Commercial Activity Income Account (CAI Account) offered by Industra Bank. 

With an CAI account, self-employed persons who are a micro-enterprise tax (MET) payer will no longer have to submit a MET return and calculate and transfer the amount of tax payable to the state budget themselves. Customer must deposit all their business income into this CAI account and Industra Bank, in cooperation with the SRS, will automatically take further action. 

Uģis Vorons, a Member of the Management Board of Industra Bank, points out: "As a bank built by entrepreneurs, we know what everyday life is like for businesspeople and how much time and care it can take to deal with bureaucratic and administrative issues that an entrepreneur might otherwise devote to developing their business. Individuals with registered business activity are an essential element in the lifeblood of the Latvian economy, so I am pleased that in cooperation with the SRS and the Financial Industry Association we have been the first in the industry to introduce an CAI account and we very much hope that it will be a good help to small entrepreneurs and relieve their daily workload. For the State Revenue Service, the CAI account will ensure a simple and understandable tax administration process, allowing the SRS to use its human resources to streamline other processes to make the business environment in Latvia truly business-friendly."

Advisor to the Minister of Finance, music publisher and musician Guntars Račs: "The introduction of the commercial activity income account is a much-awaited event, which can significantly ease the everyday life of many individuals with registered business activity, regardless of the sector in which they operate. I know that there are also many people working in the creative industries who are waiting for the implementation of this service. For those who do not receive this kind of income regularly, it is not profitable to establish enterprises or hire accountants. Open an account, work and be sure that you have settled your obligations with the state. It is also important to know that 80% of taxes paid in this way are calculated as social contributions."

"Joint work on the regulation and technical development of the CAI account has resulted in a solution that provides automatic tax deduction for the self-employed from their account, which significantly reduces the administrative burden. We are pleased with the initiative and support shown by Industra Bank, a member of the Financial Industry Association, in implementing such a solution, and we very much hope that this solution will be the basis for further innovations in simpler tax collection", says Sanita Bajāre, Chairperson of the Management Board of the Financial Industry Association.  

Under the current legal framework in Latvia, a CAI account can be used by economic operators who are micro-enterprise tax payers but not VAT payers, provided they have no tax debts and are not employers of other employees. If the individual with registered business activity already has an account with Industra Bank and wishes to use it as an CAI account in the future, all they have to do is submit an application to the SRS EDS for registration of an CAI account, after which the SRS will contact the bank about the received application and inform the customer when the account will be switched over to the CAI mode. The process will take approximately five working days from the moment of receipt of the MET payer's application in the SRS EDS.

If you choose to use a pre-opened account, it is important to make sure that it is not linked to any loans and is not used to receive other non-business payments, as these funds will also be used to set aside and remit tax amounts to the SRS under the terms of the CAI account. 

Existing Industra Bank customers can open a new account via Industra Online Banking. New customers are kindly requested to visit one of our customer service centres in Riga, Liepaja, Ventspils, Jelgava or Daugavpils to open an account and then submit an application to SRS EDS. For more information on the commercial activity income account, visit Industra Bank and State Revenue Service websites.

About Industra Bank:  
Industra Bank is a Latvian credit institution established in 1994 with 21.4 thousand customers - one thousand four hundred legal entities and 20 thousand individuals. The bank was founded by local entrepreneurs and focuses on serving Latvia's small and medium-sized enterprises. For the convenience of its customers, the bank offers eight service centres - four of them in Riga, and the others in Daugavpils, Liepāja, Ventspils and Jelgava. 

Additional information:  
Ieva Zauere
Industra Bank JSC 
Head of Marketing and Communications
+371 29485726
ieva.zauere(abols)industra.finance