PwC’s Academy Tax Foundation Course awaits its students (1/33/18)

17.08.2018
Open article
Our six-month Tax Foundation Course, which explains Latvian taxes, awaits its students – the first applications are in already. This programme of study is now entering its second decade as this is the eleventh year PwC’s Academy has offered theoretical and practical insights into Latvian tax legislation.. Read more..
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Gender pay equality (2/33/18)

17.08.2018
Open article
In the era of globalisation, businesses that are actively exporting and operating in various countries and regions are facing discrepancies in how laws and regulations are applied. Companies usually have to deal with issues of incorporation and registration as well as organising their management and taxation, but we should also mention gender pay equality as a globally growing trend. This article takes a look at some of the findings of PwC’s Global Gender Pay Compass survey. Read more..
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Employing third country nationals in Latvia: from idea to execution (2) (3/33/18) (0)

17.08.2018

Practice

To pick up where we left off last week about a foreign national’s lawful entry and employment in Latvia, this article explores the steps to be taken at the Latvian embassy in either the foreigner’s residence country or the one nearest to it after the invitation has been approved by the CMO. Read more..

Tighter rules for digital economy (2/32/18) (0)

10.08.2018

Draft

Latvia is experiencing the development of digital economy with increasingly more business being done through websites and mobile apps. However, the traditional methods of tax administration are not always effective enough in digital economy, and so the State Revenue Service (SRS) is looking to strengthen methods that are suitable for monitoring payment of taxes on income derived from online sales of goods and services. In the light of the OECD’s paper of 16 March 2018, Tax Challenges Arising from Digitalisation – Interim Report 2018, the Cabinet of Ministers on 3 July approved proposals for amending the Taxes and Duties Act to improve the rules governing the tax administration process and to help fight tax evasion in digital economy. In this article we take a look at some extra obligations traders are to face and some measures designed to help the SRS faster detect cases of tax evasion. Read more..

Employing third country nationals in Latvia: from idea to execution (1) (3/32/18) (0)

10.08.2018

Practice

Because not enough professionals are available locally, Latvian employers increasingly face the need to hire skilled workers from countries outside the EU/EEA (e.g. Russia, Ukraine, Canada, and India). However, both the employer and the foreign worker should meet a number of time-consuming statutory requirements before the foreign national receives permission to enter Latvia and lawfully begin employment. It takes 2–3 months from the date the employer identifies the need to hire a suitable foreign national to the date the worker actually arrives in Latvia. This article explores statutory requirements and steps the employer and the foreign national should take in order to organise lawful entry and employment in Latvia. Read more..

CIT treatment of provisions made before 2018 (3/31/18) (0)

03.08.2018

Practice

Filing the first corporate income tax (CIT) return has raised some questions about the new CIT system and showed up some legislative shortcomings as well as technical errors on the electronic form of the CIT return. This article explores some of the issues we have identified in the CIT treatment of general provisions. Read more..

Payroll tax treatment of bonus for last year (1/30/18) (0)

27.07.2018

Practice

Employers often pay a bonus after assessing the company’s financial results and staff performance. Under the Labour Code, the Personal Income Tax Act and the National Social Insurance (NSI) Act, a bonus is part of employment remuneration and attracts payroll taxes, i.e. personal income tax (PIT) and NSI contributions. Since a bonus often covers a past period, or even two or more past periods, in which different tax rates were in force, this raises questions about applicable rates and reporting procedures. This article explores the payroll tax treatment of bonuses that are paid to current and former employees. Read more..

 

 
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