Automatic exchange of financial account information (1/5/16) (0)

04.02.2016

Passed

Over 90 jurisdictions, including Latvia, have agreed to implement the OECD Common Reporting Standard, which provides for automatic exchange of financial account information for tax purposes from 1 January 2016. This standard will affect the daily lives of financial account holders – entrepreneurs and beneficial owners – regardless of their industry. Financial institutions (banks, investment companies, insurance companies etc) will be required by law to disclose information on these persons to local tax authorities, who will forward it once a year to the tax authority of the beneficial owner’s residence country. Read more..

Criminal liability for paying wages cash-in-hand; adjusted statement of payments to individuals (2/5/16) (0)

04.02.2016

Draft

According to proposals for amending the Criminal Code that Parliament supported in their second reading on 21 January 2016, an employer paying unreported wages is to face criminal liability. Criminal liability for this offence will arise where the amount paid cash in hand exceeds ten minimum monthly wages. Read more..

Hard-to-value intangibles (3/5/16) (0)

04.02.2016

Practice

Latvia has been taking active steps to join the OECD, and the progress made in the negotiations gives us hope that Latvia will become a full-fledged OECD member this year. On 5 October 2015 the OECD issued the latest set of reports relating to the Base Erosion and Profit Shifting (BEPS) Action Plan, as well as a plan for further work with an implementation timeline. This article takes a look at Actions 8–10 of the BEPS Action Plan, Chapter VI, which explains the definition of intangible assets and hard-to-value intangibles, as well as analysing ownership of intangibles and transactions associated with the development, improvement, maintenance, protection and use of intangibles. Read more..

Changes in preparing VAT return (1/4/16) (0)

28.01.2016

Draft

Amendments to the VAT Act passed on 30 November 2015 came into force on 1 January 2016. These amendments relate to completing the VAT return, and so proposals for amending Cabinet Regulation No. 40 of 15 January 2013 on the same subject were debated by the Cabinet of Ministers on 26 January. This article explores the main changes in preparing the VAT return. Read more..

CIT reliefs available in the Baltics (2/4/16) (0)

28.01.2016

Practice

The flow of investment into any country is one of the key aspects of its economic and business development. To attract investment, countries offer special tax reliefs – state-granted reliefs for designated industries and activities, the formation of various enterprise zones, and other incentives intended to encourage the development of a designated area. This article summarises the main corporate income tax (CIT) reliefs available in Latvia and offers an overview of reliefs available in Lithuania and Estonia. Read more..

 
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