CIT

01.02.2018

New CIT Act: donations (3/5/18)
Tax CIT
We have already informed our MindLink subscribers about the new CIT Act, including new rules for donations. This article explores differences in the CIT treatment of donations before and after 1 January 2018, when the new CIT Act came into force.
21.12.2017

CIT reform: topical accounting issues (2/51/17)
Tax CIT PIT
Under Latvian legislation, a company’s CEO is responsible for keeping and organising its books. When applicable provisions of law or the company’s internal processes change, it is important to revise its internal accounting procedures. Due to the corporate income tax (CIT) reform, the approach to calculating CIT is changing fundamentally in 2018. This article takes a look at common taxable items that deserve a revision of their accounting principles this year.
15.12.2017

Lithuanian tax news (3/50/17)
Tax CIT
Tax reforms are taking place not only in Latvia. Proposals for amending the Lithuanian Corporate Income Tax (CIT) Act were presented on 17 October 2017. This article explores key proposals.
07.12.2017

Payroll accountant’s homework to handle changes in 2018 (3 of 3) (3/49/17)
Accounting Social insurance Tax CIT Employees PIT
This article completes what we wrote last week.
17.11.2017

Tax havens (3/46/17)
Tax CIT Transfer pricing
To enforce the national legislation on direct taxation and to prevent abuse of the tax system, the Cabinet of Ministers’ Regulation No. 276, Tax Havens, was published on 26 June 2001. The list in its paragraph 1 names jurisdictions that are considered tax havens for the purposes of Latvian tax legislation.
17.11.2017

Anti-avoidance rules in new CIT Act (2/46/17)
Tax CIT PIT
Under the new CIT Act, an entity’s taxable income does not include dividends received from other entities and income arising on the sale of shares held for at least 36 months. In either case, however, this exemption is not available if the entity or its related party was formed or a particular transaction carried out for the main purpose of claiming any of the exemptions under the CIT Act or the PIT Act. Applying these rules is crucial in a structure that involves two or more entities. This article explores how the State Revenue Service (SRS) could evaluate such cases in the light of the Cabinet of Ministers’ new draft Regulation, and what criteria the OECD suggests for assessment internationally.
10.11.2017

Changes in accounting for deferred tax as at 31 December 2017 (3/45/17)
Accounting Tax CIT
Latvia has adopted a new corporate income tax (CIT) system effective from 2018. The new CIT treatment and rates will significantly change the amount of deferred tax recognised on the balance sheet as at 31 December 2017. This article explores some of these changes.
27.10.2017

More local companies subject to arm’s length principle (1/43/17)
Tax CIT
As part of Latvia’s tax reform a new Corporate Income Tax (CIT) Act was adopted on 28 July 2017 to govern CIT treatment from 1 January 2018. Under powers delegated by the CIT Act, the Cabinet of Ministers’ proposed Regulation for the Application of Provisions of the CIT Act was announced for consideration at the meeting of state secretaries on 12 October 2017, laying down a number of conditions and restrictions on CIT treatment. This article explores how the term “related party” used in the CIT Act applies when measuring the tax base of local companies and how the draft regulation clarifies this term.
20.10.2017

New CIT Act: general provisions in financial accounting (3/42/17)
Tax CIT
We have already informed our MindLink subscribers about the corporate income tax (CIT) treatment of provisions as part of the CIT reform. This article explores the CIT treatment of general provisions under the new CIT Act.
22.09.2017

New CIT Act: bad debts (2/38/17)
Tax CIT

In this article we explore the subject of bad debts.
22.09.2017

New CIT Act: tax returns and interim statements (1/38/17)
Tax CIT
In this article we explore deadlines for filing corporate income tax (CIT) returns, advance payments and interim reporting requirements laid down by the new CIT Act.
15.09.2017

Social Enterprise Bill (1/37/17)
Tax CIT
Parliament debated the Social Enterprise Bill in its second reading on 11 May 2017, and the concept of social enterprise is included in the pieces of legislation relating to the tax reform. Although the tax reform and relevant amendments have kept Parliament from debating the Social Enterprise Bill in its third reading, it’s expected to come into force on 1 January 2018 even if it’s enacted as late as the end of 2017. This article explores the purpose of the new law, the concept and status of social enterprise, and some other aspects.
08.09.2017

Corporate tax reform: lending to related parties (2) (1/36/17)
Tax CIT
To pick up where we left off on lending to related parties, this article offers examples for some of the exclusions where lending to related parties is not treated as a profit distribution.
01.09.2017

Corporate tax reform: lending to related parties (1/35/17)
Tax CIT

We continue to inform you on the new Corporate Income Tax (CIT) Act.
25.08.2017

Corporate income tax reform (cont.) (1/34/17)
Tax CIT

The first article in our corporate income tax (CIT) series mentioned the concept of deemed distribution of profit introduced by the new CIT Act. Deemed distributions will be considered to take place if a company incurs non-business expenses, lends to related parties, shares out surplus assets on winding-up, pays excessive interest, etc. This article explores the CIT treatment of one type of deemed distribution: non-business expenses.
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09.05.2025

Closure of PricewaterhouseCoopers tax and business portal MindLink.lv

We would like to inform you that on July 1, 2025, we will cease operations of the portal.   

The last MindLink.lv Flash News will be published on June 17, 2025. The archive of published content will be available until the portal is completely closed.   

Subscribers will be contacted individually. 

Thank you for choosing MindLink.lv as your trusted e-consultant! 

21.06.2023

What should you think about if you want to move to Latvia?

Tax resident status prescribes a personal income tax (PIT) liability on your worldwide income in your tax residence country. You should carefully assess your tax resident status to avoid potential double taxation, if the tax authorities of two countries treat you as their tax resident.
17.03.2023

Nasdaq welcomes PwC as a certified adviser on First North

“By working closely with multiple executives and shareholders of both private and State-owned corporates, we have observed an increasing interest about the capital markets. Business leaders have become more ambitious and better aware of the myriad of benefits from attracting capital via the exchange. At PwC, we are confident that First North Certified Adviser status will allow us to provide a more diversified advice for our clients in the Baltic region and help navigate them in the journey of an intensified capital market activity,” highlights Raimonds Dauksts, Head of Advisory at PwC Latvia.

First North is a growth market designed for ambitious small and medium-sized companies in the Baltics. Being a Certified Adviser permits PwC to guide growth companies in Baltics through the Firth North application process and ensure they meet all the market’s requirements on a continuous basis.
See all PwC publications