Automatic financial account information exchange between tax authorities (1/39/16) (0)

29.09.2016

Passed

The Taxes and Duties Act has been amended to reflect Latvia’s commitment to the OECD’s standard for automatic exchange of financial account information in tax matters. Annotation to the Taxes and Duties Act states that automatic exchange of information is recognised as a key tool for fighting cross-border tax fraud and tax evasion. Read more..

PIT treatment of income from sale of foreign bonds (2/39/16) (0)

29.09.2016

Practice

Latvian residents are required by law to declare all of their foreign-source income through the annual income tax return, including any income in foreign currency arising on the sale of bonds. Latvian legislation states that all amounts of income and expenditure disclosed on the income tax return must be stated in euros, but the Personal Income Tax (PIT) Act is silent about the timing of exchange rates to be used for arriving at taxable income from the sale of bonds. This raises several questions about calculating this income and converting expenses into euros. This article explores the calculation and PIT treatment of taxable income from the sale of bonds. Read more..

Latvian terminology: legislation or normative acts? (3/39/16) (0)

29.09.2016

Practice

Literature published by professional service industries and government agencies contains a variety of legal terms with apparently overlapping meanings, although there can be substantial differences between them. For example, when discussing what lays down rights and obligations, people often say “legislation” (“legislation provides…,” “comply with legislation…” etc) to mean Acts of Parliament, however the word “legislation” in fact denotes the process of drafting and adopting normative acts. The correct Latvian term referring to any provisions of law written and passed by the Latvian lawmaker is “normative acts.” We have seen inconsistencies in using these terms with respect to different types of acts, and so this article briefly describes how to tell them apart. Read more..

Latvian Supreme Court seeks preliminary VAT ruling from EU Court (1/38/16) (0)

22.09.2016

Practice

The Latvian Supreme Court has asked the Court of Justice of the European Union (CJEU) to make a preliminary ruling on the sole trader L.Č. case. This article explores the key issues being addressed in this case. Read more..

Transfer pricing analysis documentation (2/38/16) (0)

22.09.2016

Practice

Section 15.2 of the Taxes and Duties Act specifies what information and documents a taxpayer must hold to be able to satisfy the tax authorities during a tax control process that his transfer prices for particular business activities have been carefully considered and are arm’s length. This article takes a look at how these statutory instructions can be applied in practice. Read more..

 
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