Proposals to amend rules for applying Corporate Income Tax Act (1/29/16) (0)

21.07.2016

Draft

There are plans to amend the Cabinet of Ministers’ Regulation No. 556, Application of Provisions of the Corporate Income Tax (CIT) Act. Once the amendments come into force, companies will have to report payments made to non-Latvian residents and prove that any dividends received have not reduced taxable income in their source country. This article explores what we see as key changes. Read more..

Amendments to Competition Act allow companies to oppose adverse municipal effect on business (2/29/16) (0)

21.07.2016

Draft

Municipalities as well as companies are required by law to ensure fair competition. Yet municipalities have been found to be abusing the rights granted to them, thus unlawfully distorting competition and avoiding responsibility. Once the new amendments to the Competition Act come into force, the Competition Council will at last have the power to take action and respond to complaints filed by companies, which has been impossible so far through lack of authorisation. This article explores the impact of these amendments and how companies can protect themselves. Read more..

Low value-adding intragroup services (3/29/16) (0)

21.07.2016

Practice

To pick up where we left off earlier about the Finance Ministry and the State Revenue Service starting work on drafting amendments to the transfer pricing (TP) legislation, this time we will be exploring low value-adding intragroup services, one of the topics to be brought into the Latvian TP rules as part of the proposed amendments. This article looks at details of value-adding intragroup services. Read more..

New amendments to Taxes and Duties Act (2/28/16) (0)

14.07.2016

Passed

Some of the amendments to the Taxes and Duties Act that Parliament passed on 30 November 2015 came into force on 1 July 2016. These amendments carry on the SRS’s fight with dishonest taxpayers who tend to vanish as soon as the SRS launches a tax audit. In future, no change of owners or officers will take place without the knowledge of the SRS, which unluckily means restrictions for all (not only dishonest) taxpayers.

The most important change likely to affect taxpayers is the SRS’s power to impose a prohibition on a trader’s board change, reorganisation and liquidation before or at the start of an administrative proceeding (tax audit) if there are risks that the trader might cease trading or try to escape responsibility. This article explores what we see as key amendments. Read more..

Tax relief in free ports and enterprise zones: latest changes (3/28/16) (0)

14.07.2016

Passed

The latest amendments to the Taxation of Free Ports and Special Economic Zones Act effective from 15 July 2016 will broaden the scope of this law to cover companies operating in Latgale Special Economic Zone (SEZ). The amendments also prescribe changes affecting the availability of real estate tax (RET) rebates. This article explores what we see as key changes. Read more..

 
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