Diversity in organisations does not primarily mean differences in people’s visual appearance, gender or skin colour. Organisations have both visible and invisible diversity that can be encountered at individual, group and department level. While the potential and challenges are lying hidden in what’s invisible, we are used to measuring and accounting for what’s visible. Why is this an issue? And what risks does it entail? This article explores the essence of diversity management, risks and the initial minimum policy to eliminate them.
Many companies are considering accepting virtual currency or cryptocurrency in payment for their goods or services. Some are even considering buying virtual currency as a financial instrument. What is virtual currency? And how do we account for it properly? This article explores the essence of and accounting for virtual currency.
Belarus has unilaterally decided to suspend the operation of certain articles of its double tax treaties (DTTs) with 27 countries from 1 June 2024. This article explores the status of the Belarus-Latvia DTT and the list of affected countries.
Baltic CEOs are again cautiously optimistic about economy growth over the next 12 months. More CEOs recognise that competitiveness mostly depends on their company’s ability to transform, automate processes and adopt new technology, according to PwC’s Baltic CEO Survey 2024.
Regulation (EU) 2023/1115 of the European Parliament and of the Council on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 came into force on 29 June 2023.
Companies are sometimes unsure whether a transaction affecting them qualifies as the transfer of a business as a going concern (TOGC). This is a crucial question in identifying a number of potential risks, including VAT liabilities. If a TOGC has occurred, the transaction is not subject to VAT if the acquirer is registered for VAT and continues a business that does not involve asset stripping or liquidating the company.
The CIT Act requires companies to assess whether they have incurred expenses in acquiring and maintaining a luxury executive vehicle (LEV) for each tax period. This article explores how to determine the value of an LEV and what costs are chargeable to CIT, as well as looking at the new CIT treatment effective from 1 January 2024 of LEVs that are used for a long time.
In late 2023 PwC conducted its 27th global CEO survey with 4,702 respondents from 105 countries. The survey suggests that CEOs feel increasingly under pressure to adapt and change their current economic activity so that their company remains viable in the long term. They mention technological advances, consumer behaviours, regulatory dynamics and climate change as key factors. From a sustainability perspective, most CEOs view decarbonising their companies or reducing greenhouse gases (GHG) as a priority, which can be achieved mainly by taking steps to improve energy efficiency and developing eco-friendly goods and services.
Companies are currently working hard to prepare their financial statements for a statutory audit, so this is the right time to revise and update their basic business information. There is a general obligation often neglected by taxpayers because it seems insignificant: the State Revenue Service (SRS) must be duly notified of the taxpayer’s core economic activity according to the statistical classification of economic activities NACE 2.0, deployed uniformly across the EU. In this article we stress the importance of this obligation, remind you of the deadlines, make a few practical recommendations, and describe the proposed migration to NACE 2.1 designed to improve statistical comparability.
What are an external accountant’s obligations under the Anti Money Laundering and Counter Terrorism and Proliferation Financing (AML/CTPF) Act if accounting services are provided to related companies only? The Administrative Division of the Latvian Supreme Court referred this question to the Court of Justice of the European Union (CJEU) on 4 January 2024.
Terms such as sustainability, the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) are increasingly mentioned in public debates and corporate meetings. The more conscientious companies are not only well-versed in sustainability matters but they have set up a corporate structure that will help them report more efficiently on their sustainability performance. Other companies are still looking for a sustainability expert to help them deal with their sustainability obligations. But can hiring a sustainability expert solve all the problems? And what is the board’s role and responsibility for sustainability performance? Read on to find out.
The tax reform in Latvia involved changing its corporate income tax (CIT) system from 1 January 2018. Six years after the new system was put in place, the Ministry of Finance (MOF) has evaluated the CIT reform and prepared an evaluation of the impact of the CIT reform in 2018–2023 and a proposed scenario of further action. This article explores the purpose, content and key findings of this evaluation.
No website can function without cookies because they not only make your website functional but also help your company analyse what the visitors to the website are interested in. The National Data Office put together guidelines on cookies in 2022, but creating adequate cookie notices is still a big problem. This article will talk you through steps in creating a pop-up cookie notice on your website that complies with the General Data Protection Regulation.
Setting an arm’s length fee for your intragroup services is one of the transfer pricing (TP) challenges you might face. In 2018 Latvia decided to offer relief for low value-adding services (LVAS) to facilitate this process for companies. If certain criteria are met, LVAS can be analysed under a simplified procedure, meaning the service provider can apply a 5% markup on costs without undertaking a detailed benchmarking study. This article serves to remind you of a key requirement when it comes to taking the simplified approach to LVAS.
