PIT

27.10.2020

Working from home during Covid-19: employment income taxes (2) 1/44/20
Free access Tax Covid-19 PIT

This article completes what we wrote last week.
23.10.2020

Working from home during Covid-19: employment income taxes (1) 1/43/20
Free access Tax Covid-19 PIT

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.
09.10.2020

Single tax account and changes to income tax payment and employer reporting procedures in 2021 (3/41/20)
Tax PIT
To ease the administrative burden, all national budget payments administered by the State Revenue Service (“SRS”) will go into a new single tax account replacing the current tax accounts from 1 January 2021. The Cabinet of Ministers’ Rule No. 827 and the Personal Income Tax (“PIT”) Act will be amended to set new deadlines for paying PIT and national social insurance (“NSI”) contributions and filing employer reports. This article explores the expected changes and key amendments.
02.10.2020

Proposed changes in personal taxation from 2021 (3/40/20)
Tax PIT
On 2 September the Cabinet of Ministers debated an informational report prepared by the Ministry of Finance (“MOF”) on how to develop future tax policies that would promote Latvia’s social sustainability and economic competitiveness. The report identifies a number of issues in the tax system, which are to be resolved by a number of tax policy changes in 2021, 2022 and 2023. This article explores how the MOF proposes to change the rates of mandatory national social insurance (“NSI”) contributions, personal income tax (“PIT”) and solidarity tax, as well as income-differentiated personal allowances from 2021.
03.07.2020

PIT Act to be amended: automatic refund of overpaid tax (2/27/20)
Tax PIT
Proposals for amending the Personal Income Tax (“PIT”) Act with respect to preconditions and procedures for an automatic refund of overpaid PIT were announced at the meeting of state secretaries on 11 June 2020. The automatic refund process is to begin in 2023 for PIT overpaid in 2022.
18.06.2020

Filing capital gains tax return for second quarter income (3/25/20)
Tax PIT
In an earlier article, we wrote that the Electronic Declaration System offers a convenient wizard for calculating capital gains and we explained how it works. As the deadline for filing the capital gains tax return for the second quarter of 2020 is approaching, this is a reminder that individuals whose income from capital gains in the second quarter exceeds EUR 1,000 have to file their tax return by 15 July.
11.06.2020

Sale of foreign property: implications for individuals (2/24/20)
Tax PIT
In today’s dynamic world, it is not uncommon for a tax resident of one country to sell some real estate (“RE”) they own abroad. In such cases we need to examine the tax laws of both the person’s country of residence and the country of origin of the property or income, as well as international treaties. This article explores an example from our practice involving a Latvian tax resident selling their Russian RE in the light of Latvian tax laws, the Latvia–Russia double tax treaty, and other important aspects.
05.06.2020

Personal Income Tax Act to be amended on employee stock options (3/23/20)
Tax PIT
The latest proposals for amending the PIT Act aim to encourage more startups operating in Latvia by offering an exemption on employee stock options granted by public limited companies to motivate workers.
30.04.2020

Labour mobility during COVID-19 crisis (3/18/20)
Accounting Tax Employees PIT
Nowadays, performing your job responsibilities outside your home country is a generally accepted practice. Workers are often posted to work for other group companies abroad. Also, people searching for better jobs go to work abroad for shorter or longer periods. Such relocation of labour should always be assessed from a tax law perspective because staying in another country may affect the person’s tax residence. This article explores some tax issues that may arise because of the COVID-19 lockdown.
24.04.2020

Awarding idleness benefit to self-employed (3/17/20)
Tax PIT
The Cabinet of Ministers’ regulation No. 179 on the idleness benefit for self-employed persons affected by the spread of COVID-19 came into force on 3 April 2020. An annotation to the rules says they aim to prevent self-employed persons from losing all of their income and subsistence through the COVID-19 crisis, and the rules describe how the self-employed qualify for an idleness benefit. This article explores the eligibility criteria for a self-employed idleness benefit, how to apply for it, how much is due and for how long, as well as criteria that prevent the self-employed from receiving it.
24.04.2020

Aspects affecting employer and idle workers (1/17/20)
Legal Tax PIT

We have already informed our MindLink.lv subscribers about tax measures aimed at helping employers, workers and traders cope with the economic consequences of the COVID-19 crisis. Idleness benefit is one of the support measures for employers and workers. This article explores how to record idleness benefit in the books and how to prepare an employer’s statement for an idle worker.
17.04.2020

Changes to average pay calculation for benefits affecting new parents (3/16/20)
Social insurance Tax Employees PIT
The average national insurance wage (“ANIW”) is a key component when it comes to calculating national insurance benefits. From 1 January 2022, significant changes are expected to the ANIW calculation that will adversely affect persons who were on childcare leave directly before their insurance case arose (i.e. before the benefit was awarded). To pick up where we left off on the subject of benefits in our Flash News edition of 31 March, this article looks at some of the expected changes to the ANIW calculation.
09.04.2020

Tax filings for persons with incomes over €62,800 (2/15/20)
Tax PIT
Solidarity tax (ST) has been charged for several years on incomes exceeding the annual threshold of €62,800 set by the Cabinet of Ministers for mandatory national social insurance (NSI) contributions last year and this year. As the 2019 filing season has begun, this article serves as a reminder that under the current rules, persons whose income went over the threshold in 2019 must file their annual income tax return between 1 April and 1 July 2020.
06.04.2020

Unemployment benefit: aspects to consider this year (2/14/20)
Tax PIT
This week we have posted a separate article about some of the measures supported by the government to overcome the consequences of the COVID-19 outbreak, including measures concerned with the unemployed and their involvement in paid temporary jobs. However, amendments effective from 1 January 2020 have changed the duration and sizing of unemployment benefit. This article explores how the National Social Insurance Agency calculates unemployment benefit. This issue is likely to become topical now that Latvia has declared an emergency situation, with many employers being forced to terminate their employment relationships with their workers.
20.03.2020

Completing income tax returns: update (3/12/20)
Tax PIT
The season for filing personal income tax (“PIT”) returns has come for individuals whose income did not exceed EUR 62,800 in 2019. To simplify completing the PIT return, the health care industry offers a digital service: the electronic receipt (“E-receipt”). This article explores the E-receipt solution, which has been used by a number of medical service providers since 2019.
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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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