PIT

12.03.2020

Personal Income Tax Act to be amended (1/11/20)
Tax PIT
Parliament has been debating proposals for amending the Personal Income Tax (“PIT”) Act to determine a personal allowance applicable to the foreign-source old-age pension income of expatriates returning to Latvia. This article explores the proposed changes.
28.02.2020

Wizard for calculating capital gains: new feature on EDS (1/9/20)
Tax PIT
The State Revenue Service (SRS) has recently launched a wizard for calculating capital gains on the Electronic Declaration System (EDS). This article explores cases in which the wizard can be used and the advantages of using it.
07.02.2020

Time to file annual income tax return (2/6/20)
Tax PIT
The tax filing season is approaching swiftly as we have less than one month to go until March. On 14 January 2020, we informed our MindLink.lv subscribers about the proposed amendments relating to the statutory form of the personal income tax (PIT) return and instructions for completing it. This article explores the filing obligation as well as the statutory filing and payment deadlines.
31.01.2020

Amendments to Taxes and Duties Act in force (2/5/20)
Tax PIT
Adopted by Parliament in their third reading in late 2019, amendments to the Taxes and Duties Act (“TADA”) came into force on 13 January 2020. They define administrative offences in the area of taxation and the penalties they attract. This article explores key changes affecting taxpayers.
17.01.2020

Dividends: income tax treatment and reporting (2/3/20)
Tax PIT
We have informed our MindLink.lv subscribers that the period of transition prescribed by paragraph 130 of the transitional provisions of the Personal Income Tax (PIT) Act for charging a 10% PIT on dividends received in 2018 and 2019 out of profits made before 2018 expired on 1 January 2020. This article explores the PIT treatment and reporting of dividends after 2019.
17.01.2020

Income tax return form and completion procedures to be amended (1/3/20)
Tax PIT
Proposals for amending the Cabinet of Ministers’ Rule No. 662 on personal income tax (PIT) returns and completion procedures were announced at the meeting of state secretaries on 5 December 2019. The proposals have been put together to align the income tax return form with recent amendments to the PIT Act and to make it easier to complete for traders.
10.01.2020

Handy hints for payroll accountants: national insurance and income tax (3/2/20)
Social insurance Tax PIT

This article summarises the provisions of tax laws and other legislation affecting the calculation of personal income tax (PIT), national social insurance (NSI) contributions and solidarity tax on wages and salaries in 2020.
19.12.2019

Personal and dependant allowances in 2020 (3/51/19)
Tax PIT
The Cabinet of Ministers’ Regulation No. 676 of 14 November 2017 on allowance levels was amended on 19 November with effect from 22 November 2019. This article explores changes to the allowance levels and a new coefficient.
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.
15.11.2019

Paying dividends in 2019: aspects to consider (1/46/19)
Tax CIT PIT
Under the transition rules of the Personal Income Tax (PIT) Act, 2019 is the last year in which dividends an individual receives out of profits arising before 2018 qualify for a reduced rate of PIT. This article explores some aspects to consider where a Latvian company pays dividends to individuals in 2019.
12.11.2019

Paying dividends in 2019: aspects to consider 1/46/19
Free access Tax CIT PIT

Under the transition rules of the Personal Income Tax (PIT) Act, 2019 is the last year in which dividends an individual receives out of profits arising before 2018 qualify for a reduced rate of PIT. This article explores some aspects to consider where a Latvian company pays dividends to individuals in 2019.
18.10.2019

Employer’s disclosure of contributions to private pension funds: advance tax ruling (3/42/19)
Tax PIT

In July 2019, the State Revenue Service (SRS) published an advance tax ruling that explains how to correctly disclose information in employer statements where an employer’s contributions to private pension funds for a worker come from the employer’s money and where they come from the worker’s money through the employer.
06.09.2019

Special discounts to employees: tax issues (2/36/19)
Tax PIT
Businesses are developing a variety of methods for attracting, motivating and retaining customers and employees. Those methods usually mean expenses that need correct tax treatment. We have written about customer loyalty event expenses here. This article explores some of the tax issues arising from special discounts a company might provide to its employees.
23.08.2019

Income tax overpayment not available (3/34/19)
Tax PIT
We have written about what we discovered earlier this year when preparing annual tax returns for 2018. A certain group of persons saw an unexpectedly high overpayment of personal income tax (PIT) automatically calculated on the Electronic Declaration System (EDS) as a result of amounts of solidarity tax (ST) transferred to the PIT account. This article explores the comment offered by the Ministry of Finance (MOF) and the State Revenue Service (SRS).
19.07.2019

Receipt lottery in Latvia and abroad (3/29/19)
Tax PIT
To fight the shadow economy, a number of European countries offer their residents a variety of benefits in exchange for honest payment of taxes. Those benefits include a national lottery in which cash-register receipts for goods and services take part in various prize draws. Latvia launched its first receipt lottery on 1 July 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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