The Evaluation of Microenterprise Tax Regime Efficiency in Latvia

The primary goal of the article is to study the effect of the single tax introduction for the micro-enterprises in Latvia. The major aspects affected by the new regime introduction studied in the present article were net registration of micro-enterprises, the employment level in the country, the budget revenues. The tax benefits and exemptions available for micro-enterprises in Estonia, Latvia and Lithuania are considered in the article, too. The results of the research indicate that the largest number of tax exemptions for micro-entrepreneurship are available in Latvia. Besides, it was discovered that Latvian tax system is characterized by the lowest level of tax harmonization towards micro-entrepreneurship and the lowest level of the tax neutrality. Existing MET regime was not admitted to be efficient with regards to its impact on the researched aspects. The need for Latvian tax policy change with respect to the micro-enterprises is substantiated in article