In early 2019 we wrote that all listed companies would have to file consolidated statements in ESEF from the financial year 2020 onwards. The rollout of this format was postponed, however, and it applies starting from the financial statements for 2021.
In a recent survey conducted by PwC, 52% of CEOs cite labour and skills shortages as a critical factor affecting performance in their company. Companies are objectively facing shortages of suitable workers and required skills, and rapid technology evolution is likely to aggravate this. The situation is being worsened by the diminished engagement and loyalty of workers and by their readiness to change jobs if they fail to receive values they deem critical, such as meaningful work and professional development opportunities. This means your priorities should include developing your current workers as well as attracting new talent.
We have analysed the CIT treatment of doing business with companies on the blacklist of uncooperative tax havens earlier. This article explores new changes to the list and how they affect transfer pricing (TP).
We have informed our MindLink subscribers that in late 2022 the European Commission (EC) published proposals for amending the VAT directive (2006/112/EC) and Council Implementing Regulation (EU) No. 282/2011 to upgrade the EU VAT system and increase its resistance to fraud. Known as ‘VAT in the Digital Age’ (ViDA), the EU VAT reform aims to modernise and simplify the VAT rules for platform economy members by introducing mandatory real-time digital reporting and e-invoicing for all intra-Community B2B transactions. This article explores the latest developments and the potential reforms, focusing on e-invoicing practices.
Under the Civil Code, a gift is a legal transaction whereby someone gives an asset to another person for free out of generosity. While a gift is mainly associated with something pleasant, there may be risks and questions – read on to find out more.
The European Sustainability Reporting Standards (ESRS) require organisations governed by the Corporate Sustainability Reporting Directive to carry out a dual materiality assessment aimed at identifying environmental, social and governance (ESG) areas that are material to them. Unlike the previous practice, which had these areas identified according to the impact made by an organisation, the new methodology adds a further level of analysis assessing the financial impact ESG areas have on the organisation in terms of risks and opportunities.
It’s been quite a while since Latvia adopted new transfer pricing (TP) rules, yet the State Revenue Service (SRS) did not issue guidelines on charging fines for breaches of requirements for duly submitting or preparing TP files until late September 2023 (approved by SRS order No. 201 of 11 September 2023). This article explores the new guidelines.
Since 2020, companies have been under pressure to adapt to the ever-changing business landscape, which keeps serving up a variety of disruptions. It’s become clear that the ability to effectively respond to the changing conditions is crucial for any company.
There is much talk of various sustainability aspects within and outside the European Green Deal. Sustainability has become a daily routine in the more conscientious companies, as they devise sustainability strategies and report on sustainability goals they have achieved. There are also some companies that seek to exploit this situation by advertising themselves as well as their products and services as green, environmentally friendly or sustainable, because this may give them advantages on the market. This approach is not always seen as honest, and it can mislead consumers or even affect competition.
For most companies the financial year coincides with the calendar year, so the end of the calendar year means they need to do tasks relevant to preparation of financial statements, including an inventory of account balances and a reconciliation of debtor and creditor balances at the balance sheet date.
The end of September has been productive for farmers and ministries alike. The Ministry of Finance (MOF) has come up with proposals for amending the Personal Income Tax (PIT) Act, packaged into two bills. In this article we look at new additions to the basket of allowable expenses, as well as discussing remote work compensations and other classes of exempt income with an increased exemption threshold provisionally coming into force on 1 January 2024.
The rise of sustainability, a dynamic and fast-growing part of business, is significantly driven by EU climate and social goals and the subsequent legislation. This legislation mainly lays down requirements for disclosing information on a company’s key sustainability impact areas and relevant performance. However, these requirements are gradually expanding beyond the company’s direct impacts.
The Cabinet of Ministers is expected to approve a bill amending the Anti Money Laundering and Counter Terrorism and Proliferation Financing (AML/CTPF) Act. Although the bill has yet to undergo parliamentary review and may therefore be modified, we suggest you familiarise yourselves with the proposed changes, as they will significantly affect persons governed by the AML/CTPF Act that make foreign exchange cash purchases or sales, and legal arrangements, including trusts.
As the Year of Knowledge begins, we are opening registration for the 16th season of our “Tax Foundation Course”. This is a training programme created by PwC Latvia experts that invites people with various backgrounds to become familiar with the Latvian tax system and learn how to apply taxes properly under the direction of highly qualified and experienced lecturers. This programme has been completed by more than 1,100 company representatives and individuals wishing to enhance their understanding and consolidate their knowledge of tax matters.
