OECD has finalised guidelines on transfer pricing in financing (2/13/20) (0)

27.03.2020

Practice

On 11 February 2020 the OECD published the final version of its transfer pricing (“TP”) guidelines for financing transactions, a document welcomed also by Latvian taxpayers within multinational enterprise groups, by tax consulting service providers, and by the State Revenue Service. We wrote several articles about the draft guidelines in 2018 so this series of articles will explore some of the changes arising from the final version. We will also look at some global trends and key aspects to be considered in analysing financing transactions according to the OECD recommendations. Read more..

Practical automation of accountancy (3/13/20) (0)

27.03.2020

Practice

Today’s accountancy is moving towards a robotised future, as we are automating data exchange, data processing, and drafting of documents. It may seem that undertaking such automation requires some complex and expensive automation software, such as UiPath or BluePrism. That is not the case, though, as manual tasks can be automated with available tools without incurring any extra cost, but using those solutions requires at least a basic set of programming skills. Read more..

Tax laws must be clear enough especially with liability for tax offences (2/12/20) (0)

20.03.2020

Practice

Although the State Revenue Service (“SRS”) has already changed their approach to the VAT treatment of prematurely terminated finance leases for second-hand vehicles, this article explores some of the findings made by the Supreme Court’s Administrative Division in its ruling of 10 April 2019 (case No. A420404414, SKA-54/2019) which can help us determine the VAT treatment in other situations. Read more..

Completing income tax returns: update (3/12/20) (0)

20.03.2020

Practice

The season for filing personal income tax (“PIT”) returns has come for individuals whose income did not exceed EUR 62,800 in 2019. To simplify completing the PIT return, the health care industry offers a digital service: the electronic receipt (“E-receipt”). This article explores the E-receipt solution, which has been used by a number of medical service providers since 2019. Read more..

Personal Income Tax Act to be amended (1/11/20) (0)

12.03.2020

Draft

Parliament has been debating proposals for amending the Personal Income Tax (“PIT”) Act to determine a personal allowance applicable to the foreign-source old-age pension income of expatriates returning to Latvia. This article explores the proposed changes. Read more..