Social insurance

11.12.2020

Santa Claus coming on duty (3/50/20)

Christmas is a pleasant time of exchanging presents. This season too, companies would like to give presents to their staff and business partners. This article explores their tax treatment. In the emergency circumstances, we will not be discussing “staff sustainability” events such as Christmas parties for employees and their children. We will come back to this topic next year once the epidemiological situation has hopefully improved.

11.12.2020

Personal Income Tax Act amended (2/50/20)

Social insurance Tax PIT

Parliament has adopted amendments to the Personal Income Tax Act (“PIT”) in their final reading. This means various changes, such as the top rate being reduced from 31.4% to 31% and an automatic refund of any PIT overpay. This article explores the new PIT treatment of amounts an employer pays to compensate workers for expenses associated with remote work.

24.09.2020

Overpaid solidarity tax: refund to employer (3/29/20)

Social insurance Tax

The State Revenue Service (“SRS”) is in the process of refunding solidarity tax (“ST”) overpaid by companies. This article serves as a reminder that an ST overpay, assessment procedures and refund deadlines raise a number of questions, such as how a refund of ST for 2019 that is received this year should be recognised in the books, and points to consider when it comes to timing a future reorganisation or liquidation.

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.

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.

08.02.2019

Changes to Lithuanian tax legislation effective from 2019 (3/6/19)

Social insurance Tax CIT PIT

This article offers an overview of the latest tax developments in Lithuania.

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.

18.01.2019