Free tools · 2026 rates
Tax regime comparison: MUN, self-employed or a company?
Enter your planned income and expenses — the calculator shows all three regimes side by side with real figures and highlights the best one for your exact numbers.
The comparison shows how much is left after taxes AND expenses with the same numbers in all three regimes. The annual view assumes even income across the months — the self-employed social contributions are calculated month by month.
Best regime
Company (SIA) + dividends
You keep 1 600,00 € per month
Profit before taxes
2 000,00 €
Income − expenses per month
Micro-enterprise tax
1 375,00 €
left per month after taxes and expenses
- MUN 25 % of turnover625,00 €
- Expenses (do not reduce the tax)500,00 €
- Total taxes625,00 €
- Of income25 %
The simplest bookkeeping: a single tax covers social contributions and income tax. Cannot be VAT-registered.
Self-employed (income tax)
1 218,56 €
left per month after taxes and expenses
- Social contributions (31,07 % + 10 %)364,35 €
- Income tax estimate417,09 €
- Total taxes781,44 €
- Of income31,26 %
Expenses reduce the tax; social contributions provide pension and sick pay. Income tax is finalised in the annual declaration.
Company (SIA) + dividends
1 600,00 €
left per month after taxes and expenses
- Corporate income tax (20 % when distributing profit)400,00 €
- Income tax on dividends0,00 €
- Total taxes400,00 €
- Of income16 %
Simplified: all profit as dividends, without a board member's salary or social guarantees. Requires company (SIA) bookkeeping and an annual report.
An estimate for making a decision, not tax advice: it does not account for the non-taxable minimum, reliefs, a board member's salary in a company (SIA), or the alternative corporate income tax regime available from 2026 (15 % + 6 % personal income tax withheld from dividends). Each regime also has its own registration conditions.
Vadi does these taxes for you
Salaries, VSAOI reports, MUN and VAT declarations in EDS format, a tax calendar with exact amounts — automatically, without spreadsheets and calculators.
How it is calculated — examples and rates
How MUN, the self-employed regime and a company are compared
The figures on this page are computed by the Vadi tax engine using the rates in force on 1 October 2026. The calculation is for information only and does not replace tax advice.
The calculator runs the same monthly income and expenses through three tax regimes and shows how much is left in each after taxes and expenses.
- Micro-enterprise tax (MUN): 25% of the whole turnover. Expenses do not reduce the tax. The regime is available as long as you do not have to register for VAT, that is, up to €50,000 of turnover a year.
- Self-employed (income tax regime): on profit — income minus expenses — you pay VSAOI (state social insurance contributions) of 31.07% on the minimum wage of €780 and 10% on the excess, and IIN (personal income tax) of 25.5% on the remainder.
- Company (SIA) with dividends: profit paid out as dividends is subject to UIN (corporate income tax) of 20%. Under the standard regime individuals pay no further income tax on those dividends.
The comparison is deliberately simplified. In the company option all profit is paid out as dividends — with no board member's salary and therefore no social guarantees — and the cost of company bookkeeping and the annual report is not included. For the self-employed, IIN is an estimate without the non-taxable minimum and reliefs, which are applied in the annual declaration.
So the lowest tax is not always the best choice: a self-employed person's VSAOI builds a pension and gives the right to sickness benefit, MUN already includes social contributions, while dividends give no social guarantees at all.
Each regime can also be calculated separately and in more detail: the MUN calculator, the self-employed tax calculator and the dividend and corporate income tax calculator.
Comparison examples: small and large expenses
Income €2,500, expenses €500 a month
| Item | MUN | Self-employed | Company + dividends |
|---|---|---|---|
| Profit before taxes | €2,000.00 | €2,000.00 | €2,000.00 |
| Total taxes | €625.00 | €781.44 | €400.00 |
| Left after taxes and expenses | €1,375.00 | €1,218.56 | €1,600.00 |
The self-employed taxes here consist of VSAOI of €364.35 and an IIN estimate of €417.09.
Income €2,500, expenses €1,500 a month
| Item | MUN | Self-employed | Company + dividends |
|---|---|---|---|
| Profit before taxes | €1,000.00 | €1,000.00 | €1,000.00 |
| Total taxes | €625.00 | €451.94 | €200.00 |
| Left after taxes and expenses | €375.00 | €548.06 | €800.00 |
The income is the same but the expenses are larger. MUN is still €625.00, because it is calculated on turnover, whereas the self-employed taxes fall from €781.44 to €451.94. Under MUN only €375.00 is left after the tax and expenses.
How much is left in each regime at different income levels
The table assumes there are no expenses — the most favourable case for MUN. Amounts are per month, after taxes.
| Income per month | MUN | Self-employed | Company + dividends |
|---|---|---|---|
| €1,000.00 | €750.00 | €548.06 | €800.00 |
| €1,500.00 | €1,125.00 | €883.31 | €1,200.00 |
| €2,500.00 | €1,875.00 | €1,553.81 | €2,000.00 |
| €4,000.00 | €3,000.00 | €2,559.56 | €3,200.00 |
| €5,000.00 | not available | €3,230.06 | €4,000.00 |
MUN is not available if income averages more than €4,166.67 a month, because annual turnover then exceeds the VAT registration threshold.
Sources: Micro-enterprise Tax Law; Law on State Social Insurance; Corporate Income Tax Law.
Frequently asked questions
Which tax regime is the most advantageous?
It depends on the share and size of your expenses: with small expenses and turnover up to ~€1,500 a month, MUN is usually the simplest; with larger expenses the self-employed regime becomes better because expenses reduce the tax; with steady, larger profit it is worth calculating a company (SIA) with dividends.
When is MUN better than the self-employed status?
When there are almost no expenses and turnover is small — MUN's 25% of turnover is then less than the self-employed social contributions on the minimum wage plus income tax. As soon as expenses grow, MUN becomes more expensive because they cannot be deducted.
How much tax is due on €2,500 of income a month?
With €500 of expenses: under MUN — €625.00; for a self-employed person — about €781.44 (VSAOI and the income tax estimate); for a company paying out all profit as dividends — €400.00. After taxes and expenses that leaves €1,375.00, €1,218.56 and €1,600.00 respectively.
Which regime gives social guarantees?
A self-employed person's VSAOI builds pension capital and gives the right to sickness benefit. MUN also includes social contributions, but their amount depends on turnover. Dividends from a company give no social guarantees — those require a salary on which VSAOI is paid.
Up to what turnover can MUN be used?
As long as you do not have to register for VAT — that is, up to €50,000 of turnover in a calendar year, or €4,166.67 a month on average. A VAT payer cannot be a MUN payer.
Does the comparison take the non-taxable minimum into account?
No. For the self-employed, IIN is an estimate without the non-taxable minimum and reliefs — they are applied in the annual income declaration, so the actual tax may be lower. A board member's salary in a company and the alternative corporate income tax regime for dividends are not taken into account either.
This calculator is for information only and does not replace tax advice — the final figure is set by the State Revenue Service (VID) in its assessment. The rates are computed by the same engine used in Vadi accounting, and each value is verified against official sources (VID, likumi.lv). If you spot an inaccuracy, write to us.