When it comes to applying the corporate income tax (CIT) provisions for penalties and donations in practice, we have to deal with the terms “state institution,” “government-funded establishment” and “state-owned company,” which are not defined in the CIT Act or in the rules explaining its application. In this article we explain these terms for CIT purposes.
Today, cryptocurrency is almost a household word. “Crypto” denotes encryption provided in all modern digital currencies. Cryptocurrencies such as Bitcoin and Dogecoin have a value because people buy them for a price. The cryptocurrency can then be exchanged for goods, services or currencies issued by governments, such as the euro. This article explains how cryptocurrency trades should be booked by a company acting as broker between an individual or entity wishing to buy cryptocurrency or exchange it for money and the stock exchange where it can be bought.
The beginning of this year saw personal data experts discussing the news that the Austrian Data Protection Authority made a decision in December 2021 finding that the use of Google Analytics is contrary to the General Data Protection Regulation (GDPR). The French Data Protection Authority followed suit in February 2022. In this article we are modelling the effects of those decisions on people using the Google Analytics service across the EU, including Latvia.
With the labour market crossing national borders, Latvian employers are looking abroad to attract not only management talent but also routine workers. As the Covid-19 crisis lingers on and the significance of remote work grows, Latvian companies are increasingly wondering about the best ways to employ foreign workers, especially if they work remotely from their home country.
We are having to do our jobs and deliver results in a very complex and multifaceted environment caused by the rapid global change. The list of decision-making criteria has also become quite long. On the one hand, companies still focus on making a profit, but ESG matters often dictate a diametrically opposite approach. Change is inevitable and leaders must be able to benefit from various approaches that might initially seem conflicting and incompatible. In our December edition of Flash News we wrote about six paradoxes of leadership. This article explores them in detail
The global situation is still making us look at each other through a screen, and we have come to think of this as everyday life. A business trip is now more about connecting to another online call than boarding a coach or plane to attend a client meeting or a professional training course. Introducing a brief series of articles on payroll taxation, this one explores the tax treatment and obligations of an employer sending a worker on a business trip and paying for their accommodation and meals. We will be writing about other tax law interpretations we have received from the tax authority after we asked questions relevant to our clients preparing for the income tax filing season.
Related companies sometimes make loans to each other, and those must be arm’s length just like any other transaction between related parties. A benchmarking study can use both internal and external comparable data, yet it is not always clear what period those should be selected for. This article explores various types of loan analyses with benchmarking examples based on external sources of information.
On 20 January 2022 the Court of Justice of the European Union (CJEU) ruled on C-90/20 (Apcoa Parking Danmark A/S) regarding the VAT treatment of a fee the operator of car parks located on private land charges any motorist who breaks the parking terms and conditions. This article explores the CJEU’s findings and their practical implications.
Companies sometimes buy and sell property, plant and equipment, transfer liabilities, restructure their assets, and conduct other transactions necessary to improve their business. It is important to assess whether this gives rise to a transfer of business as a going concern (TOGC), which has specific implications for both the transferor and the acquirer.
We are experiencing the consequences of climate change more and more – through extreme weather conditions and changes in nature. To mitigate climate change and tackle problems associated with environmental degradation, the EU has set ambitious goals to achieve a 55% reduction in greenhouse gas emissions by 2030 and to become climate neutral by 2050. The European Green Deal is a strategy designed to help Europe achieve the goal of climate neutrality.
The Accounting Act and the Cabinet of Ministers’ Rule No. 877 came into force on 1 January 2022. Because no transition period is allowed for the new requirements, this article again highlights key changes affecting the CEO’s duties and responsibility for adopting control system rules that must be described in the company’s accounting policy.
A company’s shareholders in a general meeting may decide to pay a dividend once the annual accounts showing a profit have been approved. If the company’s articles of association provide for this, the Commerce Act permits an interim dividend to be declared and paid halfway through the financial year. This article explores the legislation and corporate income tax (CIT) treatment of dividends a Latvian branch pays to its foreign head office.