While rules on platform work have yet to be passed, the legal frameworks of the EU lawmaker and of the Court of Justice of the European Union (CJEU) are living parallel lives. March 2024 saw new yet converging reference points from both directions, and the sharp-eyed reader can start wondering whether platform workers (food delivery couriers) are employees or self-employed.
On 22 February 2024 the European Parliament Committee on Economic and Monetary Affairs (ECON) published a draft report that includes proposals for a transfer pricing (TP) directive drafted by the European Commission. The ECON draft report generally supports the Commission’s proposal to align the TP requirements across the EU, yet it recommends a number of crucial amendments. This article explores the ECON amendments that could affect Latvian TP requirements, too.
Looking at the ever-changing financial management space, you might think that traditional tools such as Excel should gradually become obsolete and be replaced with advanced software solutions that rationalise processes and build efficiencies. However, despite a whole range of financial technologies being readily available and optimally applied, organisations keep using Excel in their day-to-day work.
Recent years have seen the State Revenue Service (SRS) increasingly focus on transfer pricing (TP) risks, particularly management services and business support services rendered within a multinational enterprise (MNE) group. These services between related companies aim to promote a group member’s business, to cut costs it would have incurred in performing the particular functions on its own, or to offer some other comparable benefit from the synergy of doing business together. Yet there is also the other side of the coin – TP and corporate income tax (CIT) risks may arise if the recipient of services is unable to prove they were actually received and the fee was justified.
The Value Added Tax (VAT) Act prescribes a special scheme for charging VAT on supplies of second-hand goods. These include a variety of tangible items, such as cars, machinery, office equipment, furniture and other goods that are fit for future use in the same form with no modification or after repairs and that are not works of art, collectors’ items or antiques. A taxable person selling second-hand goods will normally charge VAT on the full price. However, certain supplies of second-hand goods can be exempt from VAT or taxable under a special scheme on the difference between the acquisition cost and the selling price (a margin scheme for second-hand goods as per section 138 of the VAT Act). This article explores what conditions have to be met before section 138 can be applied and when an exemption is available.
Belarus has unilaterally decided to suspend the operation of certain articles of its double tax treaties (DTTs) with 27 countries from 1 June 2024. This article explores the status of the Belarus-Latvia DTT and the list of affected countries.
Baltic CEOs are again cautiously optimistic about economy growth over the next 12 months. More CEOs recognise that competitiveness mostly depends on their company’s ability to transform, automate processes and adopt new technology, according to PwC’s Baltic CEO Survey 2024.
European Sustainability Reporting Standards (EU) 2023/2772 (‘ESRS’) require companies to disclose information on their energy consumption and structure. This article explores the disclosure requirement and why you should view it through the prism of opportunities.
Companies tend to have two or more digitalisation activities running in parallel – they’re digitalising their document flows, invoices and production equipment data, automating their supply chain, and setting up new systems. These are all important and necessary activities that make your company more competitive, cut the amount of manual work, and make your staff happier. New digitalisation projects are springing up like mushrooms, and it’s getting harder to keep pushing them all forward at the same time. It’s also difficult to abandon a project because every one of them promises a good result for your company. Your staff get burned out and can no longer cope with their day-to-day work and take part in all those projects. The seemingly easiest solution is to have your board choose which of the projects will go on and which will not. That’s not what happens, though, and expecting such help is not justified for a number of reasons.
Regulation (EU) 2023/1115 of the European Parliament and of the Council on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 came into force on 29 June 2023.
Companies are sometimes unsure whether a transaction affecting them qualifies as the transfer of a business as a going concern (TOGC). This is a crucial question in identifying a number of potential risks, including VAT liabilities. If a TOGC has occurred, the transaction is not subject to VAT if the acquirer is registered for VAT and continues a business that does not involve asset stripping or liquidating the company.
The CIT Act requires companies to assess whether they have incurred expenses in acquiring and maintaining a luxury executive vehicle (LEV) for each tax period. This article explores how to determine the value of an LEV and what costs are chargeable to CIT, as well as looking at the new CIT treatment effective from 1 January 2024 of LEVs that are used for a long time.
In our earlier article we looked at the proposed amendments to the Personal Income Tax (PIT) Act, coming into force on 1 July 2024 along with the rules governing civil partnerships. In addition to a range of PIT reliefs that are currently available to married persons and relatives up to the third degree under the Civil Code, the lawmaker intends to provide civil partners with equivalent social guarantees.
Two years after Russia invaded Ukraine, the EU Council adopted its 13th package of sanctions on 23 February 2024. Aiming to support Ukraine and tighten the restrictions against Russia’s military and defence sector, as well as targeting restrictions against individuals and entities from third countries, the EU Council has launched a number of restrictive measures.
