The payroll tax gap has tended to diminish slowly but surely since 2016, according to a 2020 national social insurance (NSI) and personal income tax (PIT) gap assessment recently carried out by the State Revenue Service (SRS).
Latvia has adopted minimum mandatory national social insurance contributions (“NSIC”) from 1 July 2021. The parliamentary opposition as well as several business organisations and industry associations asked the MPs in an open letter to postpone adoption of the minimum NSIC scheme until the economy recovers from the Covid-19 restrictions. Despite public criticisms, the new regime came into force on 1 July. This article explores cases where a self-employed person is permitted not to apply minimum NSIC to their income after filing a written request with the State Revenue Service (“SRS”).
As the vacation season is approaching, so is the implementation of the controversial minimum income subject to mandatory national social insurance (“NSI”) contributions, which might affect many companies from 1 July 2021. On 24 May, however, the Parliamentary Presidium presented proposals for amending the NSI Act to a committee, urging a deferral of the effective date of the earlier amendments. This article describes the basic principles for applying the minimum NSI income and offers practical examples in case the bill is not approved and the new rules come into force from 1 July.
On 27 May 2021 a meeting of state secretaries heard the announcement of draft rules to be issued by the Cabinet of Ministers, which provide for adopting the minimum and maximum income that is subject to voluntary national social insurance (“NSI”) contributions and to mandatory contributions for self-employed persons. This article explores the new draft rules, which are to replace Cabinet Rule No. 1478 of 17 December 2013.
Christmas is a pleasant time of exchanging presents. This season too, companies would like to give presents to their staff and business partners. This article explores their tax treatment. In the emergency circumstances, we will not be discussing “staff sustainability” events such as Christmas parties for employees and their children. We will come back to this topic next year once the epidemiological situation has hopefully improved.
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 on wages and salaries in 2020.
Concern is growing about the UK and the EU being unable to agree on a period of transition to continue doing business under the current legal framework as part of Brexit conditions. This article explores some of the tax implications of a no-deal Brexit for Latvian tax residents posted to or employed in the UK after 29 March 2019.
For e-commerce businesses. Effective 1 July 2021.
PwC specialists share their experience on topical tax issues.
PwC offers a brief video on the impact of COVID-19 on Transfer Pricing in Central and Eastern Europe.