Latvia to cut standard rate of VAT (1/20/12)
15 May 2012
Draft
The Cabinet of Ministers reviewed a proposal for amendments to the VAT Act on 15 May. The purpose of the amendments is to draw level with Lithuania and Estonia by reducing the standard rate of VAT in order to improve Latvia’s regional competitiveness and mitigate inflationary pressures on the population caused by global price increases. Read more..
Financial transaction tax: background (2/20/12)
15 May 2012
Draft
The European Commission presented its proposal for a financial transaction tax (FTT) directive on 28 September 2011, but the tax has yet to be introduced, its introduction being one of the hottest topics discussed by members of the public. This article explores the background to FTT. Read more..
State Revenue Service clarifies personal income tax treatment (3/20/12)
15 May 2012
Practice
Personal income tax (PIT) returns for 2011 are currently being filed, and this will continue until 1 June 2012. According to amendments to the PIT Act that came into force on 19 October 2011, taxpayers who paid Latvian PIT on their foreign-source employment income in the tax years 2008, 2009 and 2010 are eligible for a refund in the form of a 5% PIT. This article takes a look at comments made by the State Revenue Service (SRS) on the criteria for applying a 5% PIT and on deducting allowable expenses for social insurance purposes. Read more..
Equating qualifications obtained before 2001 (1/19/12)
8 May 2012
Passed
On 28 February 2012 the Cabinet of Ministers passed Regulation No. 142, Equation of Degrees and Professional Qualifications, according to which higher education and qualifications obtained on or before 26 December 2000 will be equated with higher education defined by the Universities Act. So education completed before 1991, 1995 or 2000 will be equated with the degrees and professional qualifications prescribed by the Universities Act. Read more..
Consumer credits: changes in annual interest assumptions (2/19/12)
8 May 2012
Draft
On 12 April 2012 the meeting of state secretaries heard the announcement of amendments to Cabinet Regulation No. 1219 of 28 December 2010 on consumer credits. The proposed changes mainly relate to the introduction of additional technical calculation methods for the calculation of the annual percentage rate of charge and clarify the old procedure as a result of the Member States being required to implement Commission Directive 2011/90/EU. This article explores some of the items that had not been singled out so far. Read more..
Large investment rebate in supportable industries (cont.) (3/19/12)
8 May 2012
Practice
To continue the topic we started in an earlier edition of Flash News, we note that in order to qualify for a corporate income tax rebate, an investment project should meet certain quality criteria, which the Ministry of Economy will evaluate by awarding points. This article takes a look at how points will be awarded. Read more..
Amendments to vehicle taxation law (1/17/12)
24 Apr 2012
Passed
In our Flash News edition of 5 April 2011 we informed our subscribers of proposed amendments to the Vehicle Running Tax (VRT) and Corporate Light Vehicle Tax (CLVT) Act, drafted by the Ministry of Finance. The amendments were passed by Parliament in their third reading on 29 March and announced by the President of State on 17 April 2012. This article explores the changes and the taxpayer categories likely to be affected. Read more..
Handy tips for accountants: supporting document or delivery note? (2/17/12)
24 Apr 2012
Practice
In our Flash News editions of 11 October 2011 and 17 January 2012 we informed our subscribers of a new type of accounting document, the delivery note, which should be prepared for movements of goods in Latvia from 1 January 2012. In this article we have summarised the statutory requirements for mandatory details that must appear on the delivery note and on the supporting document in order to help accountants in their practical work if the two documents can be merged into one, for instance when a consignment of goods is accompanied by a paper invoice that may serve as a delivery note, or when accounting documents (including delivery notes) are interchanged only electronically. Read more..
Large investment rebate in supportable industries (3/17/12)
24 Apr 2012
Practice
We have informed our subscribers in earlier editions of Flash News that the Corporate Income Tax (CIT) Act allows companies to claim a CIT rebate for large investments in supportable industries from 2011. This article takes a look at the size of a rebate, the supportable industries, and how to apply. Read more..
Using a cash-register receipt to support expenses (1/16/12)
17 Apr 2012
Passed
On 27 March the Cabinet of Ministers accepted amendments to Cabinet Regulation No. 585 of 21 October 2003 on keeping books of account. Effective from 5 April the amendments specify instances where a cash-register receipt may support expenses for business purposes. Read more..
