Abstract
In the changing economic situation of nowadays, flexible forms of employment become more popular, and a performer of economic activities is one of them. They have to face the inconstant tax policy of Latvia, be able to choose a payment regime from earned income, which is most suitable for them. The authors believe it is worthwhile to find out the opinions of performers of economics activities and to assess tax liabilities, which is an important requirement for the planning and development of their activities. The goal of the research is to assess the taxable income regimes for performers of economic activities in Latvia and to find out their opinion on their satisfaction with the tax policy. The approaches of the research are: the monographic and descriptive methods, document analysis, logically construction, statistical analysis, and a sociological research method – a pilot survey. The research resulted in the assessment of taxable income regimes and their application in various situations. By conducting the pilot survey, it has been discovered that performers of economics activities find it difficult to understand standard regulations and accounting management; they lack comprehension of the importance of SSIMC and its advantage for the future. The calculations made by the authors show the amounts of the tax burden formed with each tax payment regime.
Highlights
In the changing economic situation of nowadays flexible forms of employment become more popular among employers and employees, and one of them is to register as a performer of economic activities
In terms of the survey conducted by the authors, it was necessary to find out the opinions of performers of economic activities on their satisfaction with the tax payment regimes in Latvia, as well as of the State Revenue Service work and the amendments to the tax law in 2018; the pilot survey was conducted
As a disadvantage of the chosen tax payment regime, the payers of the microenterprise tax mentioned a small contribution to social insurance; on the contrary, the payers of PIT and SSIMC marked as disadvantages frequent changes in the tax policy and the high SSIMC rate, which performers of economic activities bore fully on their own, in comparison with employers who had to pay only 11% of their revenue part; as well as the fact that from 2018 performers of economic activities can deduct only 80% of their income as expenses
Summary
In the changing economic situation of nowadays flexible forms of employment become more popular among employers and employees, and one of them is to register as a performer of economic activities. In January 1, 2010, the patent fee was introduced in order to ease administrative and accounting procedures for the performers of economic activities who start a business activity with moderate expenses, and to create an opportunity to develop acquired skills and knowledge in professional activities It can be paid as a fixed contribution if working in specific professions or kinds of economic activities and if the income does not exceed EUR 15000 per year. In terms of the survey conducted by the authors, it was necessary to find out the opinions of performers of economic activities on their satisfaction with the tax payment regimes in Latvia, as well as of the State Revenue Service work and the amendments to the tax law in 2018; the pilot survey was conducted. It can be explained by the fact that those persons have got education and want to combine the work of their interest with gaining income; it is important to choose the right field of activity (Figure 1)
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