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V. TAXES ON BUSINESS AND INDUSTRY

A. Patente Tax

1. Commercial Enterprises

           
Category of the taxpayer  Amount of tax (In lats) 
1st category (turnover in excess of 200,000 lats)  300 
2nd category (turnover between 100,000 and 200,000 lats)  150 
3rd category (turnover between 50,000 and 100,000 lats)  75 
4th category (turnover between 10,000 and 50,000 lats)  30 
5th category (turnover not exceeding 10,000 lats) 

2. Industrial Enterprises

             
Category of the taxpayer  Amount of tax (In lats) 
1st category (turnover in excess of 500,000 lats)  600 
2nd category (turnover between 200,000 and 500,000 lats)  300 
3rd category (turnover between 100,000 and 200,000 lats)  150 
4th category (turnover between 50,000 and 100,000 lats)  75 
5th category (turnover between 10,000 and 50,000 lats)  30 
6th category (turnover between 5,000 and 10,000 lats) 

3. Banking Insurance Institutions

             
Category of the taxpayer  Amount of tax (In lats) 
1st category (statutory capital in excess of 1,000,000 lats)  600 
2nd category (statutory capital between 500,000 and 1,000,000 lats)  300 
3rd category (statutory capital between 200,000 and 500,000 lats)  150 
4th category (statutory capital between 50,000 and 200,000 lats)  75 
5th category (statutory capital between 10,000 and 50,000 lats)  30 
6th category (statutory capital not exceeding 10,000 lats) 

B. Tax on Profits

       
Amounts of profit (In lats)  Tax applicable to the fraction of profits included between the two figures of the 1st column (Percentage)1  Amount of tax corresponding to the 2nd figure of the 1st column (In lats)1 
Up to 2,000  — 
Between 2,000 and 5,000  350 
Between 5,000 and 8,000  720 
Between 8,000 and 11,000  11  1,215 
Between 11,000 and 15,000  13  1,950 
Over 15,000  15  — 
note

Special Provisions applicable to Enterprises subject to the Rules of Public Accountancy.

If the yield is less than 3 per cent of the statutory capital, the tax on profits is not payable; the only tax which is applicable is the special tax on capital at the rate of ¼ per cent.

If the yield exceeds 3 per cent of the statutory capital, the tax on profits is calculated according to the table given below and the special tax on capital is assessed at the rate of ½ per cent.

                                     
Percentage of the yield in relation to the statutory capital  Percentage of the tax on profits applicable to the total profits 
3.01  7.5 
8.07 
8.64 
9.21 
9.80 
10.36 
10.93 
10  11.50 
11  12.09 
12  12.66 
13  13.23 
14  13.80 
15  14.38 
16  14.95 
17  15.52 
18  16.24 
19  16.68 
20  17.25 

If the net profits exceed 20 per cent of the statutory capital, the rate of tax amounts to 17.25 per cent of the total profits plus 0.75 per cent for the fraction of profits in excess of 20 per cent.

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