On 6 November an emergency situation was again announced in Latvia, with a number of restrictions significantly affecting taxpayers’ business. The current state aid mechanism has been devised according to the guidelines adopted in the spring, but there are a number of differences we should consider to understand what aid measures are available to taxpayers this time round.
Globalisation is seeing a constant increase in cross-border business, something that encourages entrepreneurs to look for a suitable corporate structure within and outside their base country. Choosing a particular structure is often based not only on business interests in a certain market but also on favourable administrative and tax rules.
An adverse economic environment poses certain difficulties in maintaining transfer pricing (“TP”) policies. However, a global economic crisis does not cancel the requirement that controlled transactions be arm’s length. Following our article on Covid-19 and financial transactions, this one explores some other implications of the pandemic for TP outcomes and provides suggestions for TP analysis.
In our Flash News editions of 6 March and 15 May 2020 we said that the EU is planning to simplify the VAT treatment of e-commerce and Latvia is planning to amend the VAT Act on e-commerce. This article explores the progress in adopting these changes and the latest e-commerce developments in the UK.
Travel restrictions due to Covid-19 are affecting not only our plans to relax abroad but also trips we take for business purposes. For some workers this means having their regular business trips cancelled and spending more time videoconferencing, while others have their normal place of work changed. We can work from home for foreign as well as local companies. This article explores some aspects of employment income taxation for employees physically working abroad because of pandemic-related restrictions.
On 29 September the Cabinet of Ministers met to debate the Accounting Bill drafted in collaboration with professional organisations and academia. The Bill is to replace the Accounting Act adopted in the early 90s and embrace the latest developments and economic digitalisation. This article explores the proposed amendments and expected changes.
By passing a landmark ruling (C-311/18 Data Protection Commissioner v Facebook Ireland and Maximillian Schrems of 16 July 2020) which emphasises the basic right to privacy when personal data is transferred to third countries, the Court of Justice of the European Union (“CJEU”) has again confirmed how important it is to maintain a high level of protection of personal data being transferred from the EEA to third countries. The ruling has raised a number of questions about the legal basis for personal data transfers to third countries. As the ruling focuses on transfers to the US, this article explores some of the steps companies should take with the ruling in force.
The mass media have recently reported news of the largest fine in Latvia to date (EUR 150,000) being levied on an e-commerce company for breaches involving failure to comply with requirements of the General Data Protection Regulation (“GDPR”). Considering the company’s circumstances, as cited by the National Data Office in its decision, this article explores requirements that must be met by any company processing personal data on its website to steer clear of the fine prescribed by the GDPR.
Growing companies tend to see an increase in the amount of documentation and financial accounting data they generate. While the concept of paperless accounting is improved by developers of technology solutions and by digital start-ups, it is implemented by each company individually to make its accounting more straightforward and efficient, allowing its stakeholders to handle its financial accounting data with ease.
Given the impact of Covid-19 on many companies, on 14 July the Cabinet of Ministers adopted regulations to allocate EUR 19.2 million in aid to companies in the tourism industry and EUR 51 million in aid to exporters whose financial position has significantly deteriorated as a result of Covid-19. The new rules will come into force on the effective date of the European Commission’s decision on the compatibility of business aid with the EU internal market. This aid will be administered by the Latvian Investment and Development Agency, awarding it within the available finance allocation and by reference to the sequence in which aid requests are submitted. The aid will take the form of a grant aimed at helping companies pay wages and salaries.
Although the global economy is undergoing significant transformation as a result of Covid-19, capital keeps moving across borders and investors are still interested in investing. In these uncertain times, investors are particularly keen to maximise the diversification of their investments in order to mitigate the consequences of the financial crisis.
