CIT

17.08.2017

Tax reform: new corporate tax calculation model (2) (1/33/17)
Tax CIT
Last week we outlined some of the latest developments in corporate income tax (CIT) treatment. This article continues exploring key changes.
10.08.2017

Tax reform: new corporate tax calculation model (1/32/17)
Tax CIT

On 28 July 2017 Parliament adopted amendments to the Corporate Income Tax (CIT) Act in their final reading, significantly changing the principles of CIT treatment. The new CIT model largely resembles the one Estonia adopted 17 years ago (see our Flash News edition of 18 May 2017) which provides for paying tax at the time any profit is distributed (including deemed profit distributions). This article explores some of the new principles for calculating CIT.
27.07.2017

Personal Income Tax Act to be amended (1/30/17)
Tax CIT PIT
On 9 May 2017 the Cabinet of Ministers decided to support the National Tax Policy Framework 2018–2021, which provides for a major overhaul of the tax system. A set of proposals for amending the Personal Income Tax (PIT) Act, supported by the Cabinet of Ministers, are now publicly available. As well as differential rates of PIT on different levels of income, many other important amendments are being proposed. This article explores what we see as key changes.
08.06.2017

Lithuanian tax and legal news summary (3/23/17)
Tax CIT PIT VAT
This article explores some of the latest changes in Lithuanian tax legislation.
08.06.2017

Double tax treaty news (2/23/17)
Tax CIT
The information published by the mass media in late 2016 and early 2017 implies that Latvia can be proud of its latest achievements in the field of international cooperation. This article explores what changes this year has brought in the way of double tax treaties (DTT) and what jurisdictions Latvia plans to begin cooperation with. We will also suggest ways of finding out whether a DTT has come into force and mention places to monitor for this purpose.
26.05.2017

“Person related to company” under section 12 of CIT Act (2/21/17)
Tax CIT
For calculating taxes on transactions between related companies and determining their prices, the lawmaker has laid down special rules in section 12 of the Corporate Income Tax (CIT) Act. This article explores the term “person related to company.”
18.05.2017

Core principles of Estonian corporate tax system (2/20/17)
Tax CIT

The Latvian Cabinet of Ministers’ decision of 9 May 2017 to support the draft national tax policies for 2018–2021 has made it clear that the next six months will see significant changes to the Latvian tax system. Confirming the intention announced earlier to move the Latvian corporate income tax (CIT) regime closer to the Estonian model, the proposed policy solutions provide for reforming the CIT system from 1 January 2018 to charge a 0% tax on reinvested profits and a 20% tax on gross profits at the time of distribution. With the proposals still at a developmental stage, this article explores the Estonian model to discover how the so-called 20/80 tax rate principle works.
13.04.2017

How far we are from tax reform (3/15/17)
Microbusiness Tax CIT PIT
The government plans to launch a new tax reform have recently caused heated controversy, given the proposal to zero-rate retained earnings for corporate income tax (CIT) purposes, following the Estonian model. Although the bill is still being drafted, the opinions expressed by the institutions involved in formulating tax strategy make it clear that the reform will affect not only certain classes of subjects of law or types of companies, but every taxpayer. Given the rapid pace of change, this series of articles will explore the progress in drafting and debating the proposed amendments, with examples to illustrate how particular changes to the tax regime might affect the overall tax burden in the long-term, as well as sharing our views on things to consider in planning corporate tax policy. The new tax regime is to apply from 1 January 2018.
31.03.2017

Practical tips for preparing corporate tax return for 2016 (cont. 2) (1/13/17)
Tax CIT
This article continues to explore common adjustments and mistakes in preparing the CIT return that are associated with capital allowances, payments to non-residents, movements in provisions, and donations.
23.03.2017

Practical tips for preparing corporate tax return for 2016 (cont.) (3/12/17)
Tax CIT
We continue the article we posted on 21 February 2017 to look at common adjustments and mistakes in preparing the corporate income tax (CIT) return. This article explores adjustments related to claiming tax relief in respect of foreign tax paid, bad debts, and deductible interest.
02.03.2017

Management and consulting services (2/9/17)
Tax CIT
To pick up where we left off about payments to non-residents, this article explores management and consulting fees, a common type of payment that is subject to a 10% withholding tax.
23.02.2017

Practical tips for preparing corporate tax return for 2016 (1/8/17)
Tax CIT
As we approach the deadline for filing the annual financial statements and corporate income tax (CIT) returns, this article summarises information about key changes to the procedures for completing the CIT return for 2016 and about other important matters associated with preparing the CIT return.
09.02.2017

Reporting payments to non-residents (2/6/17)
Tax CIT
The taxpayer’s obligation to track payments made to non-Latvian residents is no news. Recent changes aimed at improving cross-border administrative cooperation on tax matters have increased the amount of information taxpayers must report from 1 January 2017. This article explores the new reporting obligation.
09.02.2017

PIT and NSI exemption for staff catering costs (1/6/17)
Tax CIT PIT VAT
Amendments to the Personal Income Tax (PIT) Act that were adopted on 23 November 2016 list criteria to be met by companies wishing to claim exemptions from PIT and national social insurance (NSI) contributions on staff catering costs of up to €480 a year. This article explores the new rules, and the VAT and CIT treatment of staff catering 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