The Ministry of Justice has come up with proposals for amending the Cabinet of Ministers’ Rule No. 1250 of 27 October 2009, “Stamp duty for entering ownership and mortgage rights on the land register”, which could take effect on 1 July 2024. The proposals are designed to enforce the Constitutional Court’s ruling No. 2022-03-01, which provides for extending social and economic protections to individuals who have duly entered into a civil partnership. The proposals have been sent to the Ministry of Finance for approval by 8 February 2024.

In its ruling C26128713, SKC-201/2019 of 28 June 2019, the Supreme Court took a different view on the VAT Act’s condition that the taxable amount should include only taxes payable in relation to a supply of services. The dispute involved a forced lease of land that stipulated a rent plus a compensation of real estate tax (RET). The Supreme Court was assessing whether VAT should be charged on the compensation. First of all, the assessment focused on what items attract RET and who is liable to pay it.

Latvian tax residents are also taking the opportunity to work abroad. A Latvian tax resident meeting certain criteria may become a tax resident in the foreign country where he is employed. Selling real estate (RE) located in Latvia or other assets may raise the question of which country’s personal income tax (PIT) is payable on the profit you make on the transaction.