CIT

11.06.2020

Company liquidation is governed by Commercial Code but tax laws also come into play (3/24/20)
Tax CIT
Thousands of companies go out of business in Latvia each year. If a company’s shareholders no longer wish to stay in business, they can decide to wind the company up. In certain circumstances, liquidating a company results in its shareholders being entitled to surplus assets (a “liquidation quota”) creating extra income. This article explores some of the tax implications for a liquidated company’s shareholder receiving income from a liquidation quota, which may differ considerably if the shareholder is an individual or an entity.
05.06.2020

SRS guidance on CIT treatment amid emergency (2/23/20)
Tax CIT
Latvia has extended the emergency situation to 9 June. COVID-19 is causing businesses to incur additional expenses in providing a safe working environment. Accountants have questions about recording such expenses in the books and applying the correct tax treatment. The State Revenue Service (“SRS”) has published guidance interpreting the corporate income tax (“CIT”) and VAT treatment in the emergency situation. This article explores the interpretation of CIT treatment.
28.05.2020

Rules for applying CIT Act amended (3/22/20)
Tax CIT
The Cabinet of Ministers’ amendments to Cabinet Rule No. 677 of 14 December 2017, Application of provisions of the Corporate Income Tax Act, were published on 7 May 2020. The Cabinet Rule prescribes how a non-resident entity should report income from real estate leases, explains the calculation of income for a permanent establishment, and adjusts the treatment of corporate reorganisations.
08.05.2020

Approaches to valuation of intangible property (3/19/20)
Tax CIT Transfer pricing
In recent years, there has been an increasing number of cross-border transfers of intangible property (“IP”) between related parties. Related-party transactions involving IP are usually material and attract scrutiny from the tax authorities. The OECD outlines inappropriate valuation of IP as a key risk related to profit shifting. This article explores general valuation techniques that can be used for determining and defending an arm’s length price in IP transfers between related parties.
12.03.2020

Estonia: tax developments (3/11/20)
Tax CIT Customs
In 2019, the Estonian Ministry of Finance drafted proposals for amending the Income Tax Act to regulate the taxation of income earned by foreign temporary workers (non-residents) from employment in Estonia. The amendments were expected to take effect from 1 January 2020 but they did not.
12.03.2020

Taxation of permanent establishments: SRS guidance (2/11/20)
Tax CIT
To fill the gap in Latvian legislation when it comes to taxing a non-resident company’s permanent establishment (“PE”) in Latvia, the State Revenue Service (“SRS”) published guidance in August 2019 explaining their approach to PE taxation with examples, which may at first seem quite aggressive, especially considering that nearly all of the PE’s outgoing payments attract corporate income tax (“CIT”). This article explores the SRS approach.
28.02.2020

Future of digital tax: OECD Pillar Two (3/9/20)
Tax CIT Transfer pricing

Wrapping up our previous article “Unified approach to addressing tax challenges in digital economy,” this article explores the OECD’s proposals for international taxation rules within Pillar Two.
21.02.2020

Amendments to Corporate Income Tax Act effective from 12 February (1/8/20)
Tax CIT
We have published a number of articles since last summer about proposals for amending the CIT Act. This article summarises amendments that were adopted by Parliament in their third reading on 30 January and came into force on 12 February 2020 to update the existing rules and introduce some new ones.
14.02.2020

Corporate tax relief for donors from 2020 (3/7/20)
Tax CIT
Recent amendments to the Corporate Income Tax (CIT) Act are expected to increase the flow of donations this year. This article explores amendments relating to CIT relief for donors applicable from 1 January 2020 to 31 December 2022.
07.02.2020

Corporate Income Tax Act amended (3/6/20)
Tax CIT
The long-awaited amendments to the CIT Act have been finally adopted. This article explores amendments that increase the number of items to be included in the tax base and expands the range of taxpayers.
31.01.2020

Corporate tax treatment of profits from property sales (3/5/20)
Tax CIT
If we look at the Latvian corporate income tax (CIT) treatment of real estate (RE) sales, foreign companies are still governed by different rules when selling shares in a Latvian company whose assets are mostly RE. This article explores key differences in CIT treatment depending on whether the seller is a Latvian or a foreign company and whether they sell RE or shares in an RE company, as well as outlining some proposed changes that will affect Latvian companies.
31.01.2020

Adjusting corporate tax return for last reporting month (1/5/20)
Accounting Tax CIT
Last week saw most of the companies whose financial year runs from January to December in a hurry to prepare and file their tax return for the last reporting month. The final return must include some tax-base elements that could be ignored when preparing monthly returns. This article will help you figure out whether any adjustment needs to be made to your tax return being submitted with your annual report.
19.12.2019

New option to handle double taxation disputes (1/51/19)
Tax CIT
From 23 October 2019, taxpayers have a new means of preventing double taxation in their cross-border transactions: the mutual agreement procedure (MAP). The Taxes and Duties Act has been amended to incorporate rules laid down by EU Directive 2017/1852 and the Arbitration Convention.
06.12.2019

Corporate tax treatment of donations (3/49/19)
Tax CIT
With the year nearing its end, donors usually spring into action, so this article will remind our MindLink subscribers of the three types of relief under the Corporate Income Tax (CIT) Act.
29.11.2019

CIT and PIT treatment of dividends: advance tax ruling (1/48/19)
Tax CIT PIT

In October 2019, the State Revenue Service (SRS) published an advance tax ruling on the corporate income tax (CIT) and personal income tax (PIT) treatment of dividends paid out of profits formed by proceeds from selling a subsidiary. The ruling answers some long-awaited questions about the tax implications.
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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