Payments

Commercial Activity Income Account

Open a Commercial Activity Income Account from December 1 to December 30 and we will not charge the fee for reviewing documents and opening a Commercial Activity Income Account account!

The Commercial Activity Income account service allows to significantly reduce the administrative burden to the small entrepreneurs - self-employed persons.

In this case, filling of the micro-enterprise tax declaration, as well as the calculation and transfer of the amounts to be paid to the state budget, are carried out automatically by Industra Bank in cooperation with the State revenue service instead of the entrepreneur.

Prerequisites for use of a Commercial Activity Income account:

  • 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.

Commercial Activity Income account opening process

  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. 

How will the automated tax payment be executed?

The micro-enterprise tax rate is:

  • 25% - for yearly turnover up to 25,000 euros
  • 40% - for the share of turnover that exceeds 25,000 euros per year.

The bank first reserves 40% (the maximum rate) of each incoming payment to the Commercial Activity Income account. The SRS makes sure that the turnover has not exceeded 25,000 euros per year. If the turnover threshold is not exceeded, the additional reserved amount is released and available to the account owner within two working days at the latest, while 25% is paid to the state budget. If the turnover threshold is exceeded, 40% is paid to the state budget from the part of the turnover that is over 25,000 euros per year.

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".
 

What are the fees for opening and servicing a business income account?

Type of service Price
Consideration of documents and opening of a account EUR 15,00
Maintenance of an account (monthly fee) EUR 5,00
Transfers to the single tax account (automatic payment of tax, simplified tax payment solution)
free of charge
free of charge
  • 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 40 000 per year.
  • All other fees are according to the Bank's price list for legal person customers - residents of Latvia.

Important!

  • 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.
     

To learn more about the Commercial Activity Income account: 

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