Payroll tax withheld from board members

Payroll tax will be withheld from board member (in the amount of at least one minimum wage per month), if:

in pre-taxation year company’s turnover exceeded 12 times the minimum monthly wage amount multiplied by a coefficient of 3.3 (in 2014 – LVL 8,910 (EUR 12 678)),

in pre-taxation year company does not have any employee or board member who receives at least a minimum monthly wage during all months of the pre-taxation year,

during a taxation year the company has turnover.

This norm will not apply if a board member receives income of at least five minimum monthly wages from another company, if both companies are members of the holding group in the interpretation of the CIT law.

/State Revenue Service /

https://www.vid.gov.lv/default.aspx?tabid=8&id=41&hl=1&oid=108254&mod=35