Employees

08.02.2019

How no-deal Brexit will affect personal taxation in Latvia (2/6/19)
Social insurance Tax Employees PIT

Concern is growing about the UK and the EU being unable to agree on a period of transition to continue doing business under the current legal framework as part of Brexit conditions. This article explores some of the tax implications of a no-deal Brexit for Latvian tax residents posted to or employed in the UK after 29 March 2019.
14.12.2018

Is athlete employee? (2) (3/50/18)
Legal Tax Employees
This article completes what we wrote last week.
07.12.2018

Is athlete employee? (1)
Tax Employees
Increasingly more Latvian athletes are achieving great results and recognition that makes Latvia famous around the world. They might have entered into contracts with their clubs in Latvia as self-employed persons, but this raises some questions. Is the athlete a self-employed person or an employee? What form does the legal relationship take? This article explores the form and its legal and tax implications.
26.11.2018

Rights of smokers and non-smokers: let us create healthy working environment (3/47/18)
Legal Tax Employees
Smoking is a common workplace problem for both smokers, who are desperate for at least a couple of smoke breaks during the workday, and for non-smokers, who hate to find themselves choking in smoke or vapour. This article explores the rights of smokers and non-smokers at work and the employer’s obligations.
09.11.2018

Exempt limits of business trip compensations paid by foreign company: advance tax ruling (3/45/18)
Tax Employees PIT
The State Revenue Service (SRS) has published an advance tax ruling (ATR) on the personal income tax (PIT) treatment of expenses a foreign company pays to its employees going on short business trips to Latvia. The ATR answers questions frequently asked by employers about business trip expense limits that are exempt from Latvian PIT. This article explores the main ATR conclusions and ways to apply the relevant provisions of the PIT Act.
17.08.2018

Employing third country nationals in Latvia: from idea to execution (2) (3/33/18)
Legal Tax Employees
To pick up where we left off last week about a foreign national’s lawful entry and employment in Latvia, this article explores the steps to be taken at the Latvian embassy in either the foreigner’s residence country or the one nearest to it after the invitation has been approved by the CMO.
25.01.2018

Solidarity tax payers: things to consider in 2018 (3/4/18)
Social insurance Tax Employees PIT
Since 2016, solidarity tax (ST) has been charged on income that exceeds the cap set by the Cabinet of Ministers for mandatory national social insurance (NSI) contributions. This principle remains in place this year. However, paying ST will provide taxpayers with certain benefits because unlike the old rules, ST payments are now going towards healthcare, social insurance, and personal income tax (PIT) payments. Overall, the ST rules have become more favourable to taxpayers. This article explores this principle and taxpayers’ obligations under the new rules.
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.
29.09.2017

Electronic identification of people employed on construction sites (1/39/17)
Legal Stamp Tax Employees
Section 111 of the Taxes and Duties Act as amended on 1 July 2017 requires that any person employed on a construction site should be identified using an individually tailored device or IT solution that ensures personal identification and registration of hours worked in an electronic time record system and storage in an accounting database.
04.08.2017

Employee shares and stock options (3/31/17)
Legal Tax Employees
In today’s business environment the remuneration of a company’s key employees and management often includes something in addition to fixed salaries and bonuses. Some of the instruments aimed to motivate employees may even be unregulated. In reaction to these market trends, Parliament has passed extensive amendments to the Commercial Code this summer, which, among other things, change the treatment of employee shares and introduce new rules for the issue of employee stock options. This article explores some of these amendments.
22.06.2017

Rules for obtaining residency certificates to be amended (3/25/17)
Business Tax Employees
Proposals have been drafted for amending Cabinet Regulation No. 178 of 30 April 2001, which lays down procedures for claiming relief available under double tax treaties. The proposals set out arrangements for approving a residency certificate issued by a foreign tax authority, which will be valid for five years, as well as prescribing easy terms for transactions below €5,000. This article explores the proposed changes.
06.04.2017

Accounting for vacation in calendar days or working days? (3/14/17)
Accounting Tax Employees
The Labour Code states that every employee is entitled to annual paid leave not shorter than four calendar weeks or 28 calendar days, not counting public holidays. Yet employers often book annual leave in working days, assuming that annual leave is 20 working days. This article explores the right to annual leave and extra leave as well as the implications of different accounting.
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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.
07.03.2023

ESG reporting news - podcast 30 min (in Latvian)

Eiropas Parlaments pagājušā gada novembrī oficiāli apstiprināja Korporatīvās ilgtspējas ziņošanas direktīvu jeb CSRD (Corporate Sustainability Reporting Directive). Šobrīd Eiropas Savienības dalībvalstu, t.sk. Latvijas, rīcībā ir 18 mēneši, lai šo direktīvu pārņemtu savos tiesību aktos. Šādi iecerēts uzlabot pieejamās nefinanšu informācijas kvalitāti, nodrošinot uzņēmumu dažādo ietekmes pušu vajadzības un veicināt kopējo Eiropas pāreju uz ilgtspējīgāku ekonomiku.  

Šajā PwC Nodokļu podkāsta epizodē PwC Latvija ilgtspējas pakalpojumu vadītāja Maija Orbidāne skaidro, kādas ir šīs direktīvas prasības, kā tas ietekmēs uzņēmējus Latvijā un kādi ir laicīgi veicamie mājasdarbi šajā sakarā.
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