In-depth Cooperation Programme up and running

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25.01.2019

1 January 2019 is the effective date of the Cabinet of Ministers’ new Regulation No. 748, Rules for running the In-depth Cooperation Programme, which provides for the automatic assessment and admission of taxpayers to the Bronze, Silver or Gold level of membership. The State Revenue Service (SRS) has posted on their website a list of 79 members that qualify for Gold. To achieve this level, the qualifying companies should implement a tax risk management (TRM) system and duly file their TRM documentation with the SRS. This article explores the deadlines, documentation requirements, and benefits.

 

Deadlines
 
Existing and potential Gold taxpayers should file their TRM documentation with the SRS according to when they achieved this status:
 

Qualifying for Gold

TRM filing deadline

Members admitted to the programme before 1 January 2019

4 February 2019

Members qualifying for Gold on 1 January 2019

31 May 2019

Members to qualify for Gold after 2019

one month’s notice from SRS


Requirements for TRM documentation
 
TRM is a set of measures aimed at identifying the taxpayer’s risks and controls.
 
When implementing TRM, the taxpayer should analyse and define his areas of business, steps of his processes, tax risks inherent in each step and appropriate risk controls, as well as appointing persons in charge of those processes and controls. Each process and step should be sufficiently detailed to allow a competent party to trace activities creating a tax risk. The taxpayer should also set up a register of tax risks.

The taxpayer should assess his TRM processes, check his TRM controls for compliance and efficiency, and ensure his TRM is updated and improved at least once a year. The taxpayer should submit a statement confirming his TRM assessment to the SRS along with his annual report.
 
Detailed requirements for preparing TRM documentation are included in the Cabinet Regulation. We encourage you to review your documentation early on, and if necessary update it to meet those requirements.
 
Benefits
 
The benefits available from the SRS vary according to the level of membership:
 

Bronze

Silver

Gold

Mark of recognition awarded by SRS

 

Mark of recognition awarded by SRS

 

Mark of recognition awarded by SRS

 

The prize a member awards to a cash-register receipts lottery winner

The prize a member awards to a cash-register receipts lottery winner

The prize a member awards to a cash-register receipts lottery winner

Easy procedure for cash system checks (members with TRM)

Easy procedure for cash system checks (members with TRM)

Easy procedure for cash system checks (members with TRM)

 

Reply to a written query – within 10 working days

Reply to a written query – within 10 working days

 

Reply to a question asked by telephone and via EDS – within 7 working days

Reply to a question asked by telephone and via EDS – within 5 working days

 

Issuing licences for excise goods within 10 working days

Issuing licences for excise goods within 10 working days

 

VAT refund within 10 working days

VAT refund within 10 working days

 

Easy terms for non-dispute collection of debt

Easy terms for non-dispute collection of debt

 

Advantages in applying the amount of general security for excise

Advantages in applying the amount of general security for excise

 

 

An individual SRS consultant

 

 

A special seminar the SRS holds at the taxpayer’s office

 

 

Opportunity to attend meetings of the SRS Advisory Council

 

 

Personal income tax refund to employees filing their annual tax return via EDS, within 1 month


PricewaterhouseCoopers SIA would be happy to help you prepare or update your TRM documentation required particularly as a result of the corporate income tax reform. Please call Agate Ziverte, Iva Saicane or Aleksandra Saltanova on 67094400.

 

 
Contacts
Aleksandra Saltanova
Consultant, Tax Services
aleksandra.saltanova@pwc.com
Tel: +371 67094400
Agate Ziverte
Senior Manager, Tax Services
agate.ziverte@pwc.com
Tel: +371 67094400
Iva Saicane
Senior Consultant, Tax Services
iva.saicane@pwc.com
Tel: +371 67094400
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