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.

This article explores Microsoft’s data analysis software Power BI as well as its uses and advantages.

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.

Businesses are increasingly struggling with the question of how a business trip is different from a worker posting. This article explores the main differences and criteria for distinguishing between the two concepts.

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.

The Covid-19 pandemic has brought significant changes to the business environment, including temporary rent concessions. As a result, amendments to International Financial Reporting Standard 16 Leases (“IFRS 16”), which were adopted on 28 May 2020 and could be applied to financial statements for 2020, are awaiting EU approval.

Having governed matters of administrative liability, including tax-related, for almost 35 years, the Latvian Code of Administrative Offences ceased to apply on 1 July 2020 and was replaced by the Administrative Liability Act (“ALA”) as part of Latvia’s sweeping administrative liability reform. ALA is not merely an improved version of the old Code – the structure and rules of the new Act are substantially different, so the first glance might cause some confusion. This article explains where to look for descriptions of various offences and what administrative liability is prescribed for tax violations, as well as giving an overview of other related matters.

This article offers a brief insight into our experience.

As the work on modernising the Electronic Declaration System (“EDS”) continues, the State Revenue Service (“SRS”) has launched Application Programming Interface (“API”) from 22 July 2020. This new solution aims to simplify the process companies need to go through when filing tax returns and to ease their administrative burden. This article explores how we can use EDS API.

This article completes what we wrote last week about IFRS 15.

Revenue recognition is one of the trickiest challenges, especially in a transaction involving two or more parties. When it comes to recognising revenue in such transactions, companies often have questions. Is the full invoice amount my revenue? Am I an agent? This article explores what legal provisions should be applied in order to answer these questions.

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.