This article summarises the provisions of tax laws and other legislation affecting the calculation of personal income tax (“PIT”), national social insurance (“NSI”) contributions and solidarity tax (“ST”) on wages and salaries in 2021.
Draft rules that significantly change the system for reporting suspicious transactions were announced at the meeting of state secretaries on 14 January 2021. This article explores the current reporting requirements and the proposed changes relating to the new goAML app.
The new era of digitalisation sees companies increasingly adopting new tools and automations to stay competitive in the marketplace. Yet before implementing any new tool or automation, the company needs to consider a great deal of factors that can affect or stop it from achieving the desired result. Those factors are unique for each company, line of business, and internal processes. Automations and new digital tools are not magic bullets and don’t bring e-happiness. Adopting each solution has its own criteria that must be met to maximise returns on the time and capital invested.
On 6 November an emergency situation was again announced in Latvia, with a number of restrictions significantly affecting taxpayers’ business. The current state aid mechanism has been devised according to the guidelines adopted in the spring, but there are a number of differences we should consider to understand what aid measures are available to taxpayers this time round.
On 29 September the Cabinet of Ministers met to debate the Accounting Bill drafted in collaboration with professional organisations and academia. The Bill is to replace the Accounting Act adopted in the early 90s and embrace the latest developments and economic digitalisation. This article explores the proposed amendments and expected changes.
Growing companies tend to see an increase in the amount of documentation and financial accounting data they generate. While the concept of paperless accounting is improved by developers of technology solutions and by digital start-ups, it is implemented by each company individually to make its accounting more straightforward and efficient, allowing its stakeholders to handle its financial accounting data with ease.
Although the global economy is undergoing significant transformation as a result of Covid-19, capital keeps moving across borders and investors are still interested in investing. In these uncertain times, investors are particularly keen to maximise the diversification of their investments in order to mitigate the consequences of the financial crisis.
For an ever-decreasing number of businesses, financial return remains the top priority. For others, whether driven by investor demand, regulation or the desire to enhance societal value, there is now an expectation that organisations make environmental, social and governance (ESG) issues and sustainability integral to their corporate strategy, philosophy and reporting. Where does your business lie on the spectrum?
If a stock option awarded to an employee does not meet the criteria for the tax favoured treatment and is consequently taxable at vesting, the Latvian employer is liable to report the award for personal income tax (PIT) and national social insurance contributions (NSIC) purposes and ensure taxes are paid.
PwC provides general information about –
1. why tax resident status is important and how it is determined;
2. when you are liable to file a Latvian annual income tax return and when you can do so voluntarily;
3. social security arrangements.