Tax

10.07.2020

Exit tax: scope and treatment (2/28/20)
Tax CIT
Recent amendments to the Corporate Income Tax (“CIT”) Act, transposing Council Directive (EU) 2016/1164 of 12 July 2016 and Council Directive 2017/952 of 29 May 2017 amending Directive (EU) 2016/1164, have introduced a number of new provisions. This article takes a look at exit tax, which is regulated by many of the new provisions.
03.07.2020

Fintechs must stay compliant in aftermath of Covid-19 (3/27/20)
Legal Tax AML

Although Latvia is a European leader in P2P crediting, the fintech industry has also suffered from the Covid-19 crisis. According to financial blogger Kristaps Mors, four Latvian online platforms have closed down or stopped paying money in recent months. He says if this tendency continues, Latvia might become famous as a fraud centre of this industry. We assume that these signals have reached the State Revenue Service and the National Data Office, who are carefully monitoring the business conducted in this industry to ensure that fintechs comply with statutory requirements.
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.
03.07.2020

Deemed intra-Community supplies: recovering VAT paid in another member state (1/27/20)
Tax VAT
In its ruling of 11 June 2020, the Court of Justice of the European Union (“CJEU”) answered preliminary questions asked by a Romanian court as to whether moving goods to another member state constitutes a deemed intra-Community supply and whether the existence of a VAT identification number or the requirement for identification denies the right to a VAT refund in another member state under the 9th directive. This article explores the CJEU findings.
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.
18.06.2020

Corporate income tax relief (2/25/20)
Tax CIT
The CIT Act offers a variety of reliefs that taxpayers may claim if they have a taxable base that qualifies for a particular relief. This article explores some of the available CIT reliefs.
18.06.2020

New coronavirus law (1/25/20)
Accounting Tax VAT
On 5 June 2020, Parliament adopted the Handling of Covid-19 Consequences Act in its final reading. The new law aims to lay down a legal basis for support measures after the end of the emergency situation caused by the coronavirus pandemic.
11.06.2020

Company liquidation is governed by Commercial Code but tax laws also come into play (3/24/20)
Tax CIT
Thousands of companies go out of business in Latvia each year. If a company’s shareholders no longer wish to stay in business, they can decide to wind the company up. In certain circumstances, liquidating a company results in its shareholders being entitled to surplus assets (a “liquidation quota”) creating extra income. This article explores some of the tax implications for a liquidated company’s shareholder receiving income from a liquidation quota, which may differ considerably if the shareholder is an individual or an entity.
11.06.2020

Court overturns tax authority’s interpretation of tax evasion (1/24/20)
Tax VAT
In our Flash News of 10 September 2019 “State Revenue Service seeks collection from tax debtor’s business partners” we wrote about how the SRS suspended a trader’s business after he refused to pay taxes owed by its supplier. The SRS has recently lost more cases in which a trader disputed his business suspension enforced by the SRS after he withheld information about one of his suppliers and in which a trader refused to pay a supplier’s tax debt at the SRS’s request. This article explores key aspects of those disputes.
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

SRS guidance on CIT treatment amid emergency (2/23/20)
Tax CIT
Latvia has extended the emergency situation to 9 June. COVID-19 is causing businesses to incur additional expenses in providing a safe working environment. Accountants have questions about recording such expenses in the books and applying the correct tax treatment. The State Revenue Service (“SRS”) has published guidance interpreting the corporate income tax (“CIT”) and VAT treatment in the emergency situation. This article explores the interpretation of CIT treatment.
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.
02.06.2020

Temporary residence permit and EU Blue Card: five differences (2) 1/23/20
Free access Legal Tax

This article finishes off what we posted last week.
28.05.2020

Rules for applying CIT Act amended (3/22/20)
Tax CIT
The Cabinet of Ministers’ amendments to Cabinet Rule No. 677 of 14 December 2017, Application of provisions of the Corporate Income Tax Act, were published on 7 May 2020. The Cabinet Rule prescribes how a non-resident entity should report income from real estate leases, explains the calculation of income for a permanent establishment, and adjusts the treatment of corporate reorganisations.
26.05.2020

Temporary residence permit and EU Blue Card: five differences (1) 1/22/20
Free access Legal Tax

What is it that differentiates a temporary residence permit from an EU Blue Card? While both documents allow a foreign national to spend a certain period in Latvia, there are essential differences that need to be considered when choosing either of them. This article explores five key differences between the temporary residence permit and the EU Blue Card.
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09.05.2025

Closure of PricewaterhouseCoopers tax and business portal MindLink.lv

We would like to inform you that on July 1, 2025, we will cease operations of the portal.   

The last MindLink.lv Flash News will be published on June 17, 2025. The archive of published content will be available until the portal is completely closed.   

Subscribers will be contacted individually. 

Thank you for choosing MindLink.lv as your trusted e-consultant! 

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.
See all PwC publications