Tax

26.11.2019

Transfer pricing documentation for share purchase and sale: SRS comment 1/47/19

Free access Tax Transfer pricing

Under Latvian transfer pricing (TP) rules, a taxpayer reaching a statutory threshold for controlled transactions must prepare and file TP documentation with the State Revenue Service (SRS) within 12 months after the end of the financial year. The SRS has recently issued a crucial interpretation stating that the acquisition and disposal of assets includes acquiring shares in another company and is therefore considered a transaction for TP purposes.

26.11.2019

Submission of transfer pricing documentation 1/48/19

Free access Tax Transfer pricing

As the calendar year 2019 is nearing its end, some taxpayers are facing a deadline for filing their transfer pricing (TP) documentation. This article explores the deadline and some technical challenges that are likely to prevent taxpayers from meeting it.

22.11.2019

Setting up internal whistleblowing system (3/47/19)

Tax

Effective from 1 May 2019, the Whistleblowing Act (WBA) permits everyone to raise concerns in the public and the private sector on any threat to the public interest seen at work. The Act provides that the whistle can be blown on wrongdoings through one of the available whistleblowing mechanisms, including an internal whistleblowing system (IWBS). This article explores requirements and recommendations for building an IWBS.

22.11.2019

Transfer pricing documentation for share purchase and sale: SRS comment (2/47/19)

Tax Car tax Transfer pricing

Under Latvian transfer pricing (TP) rules, a taxpayer reaching a statutory threshold for controlled transactions must prepare and file TP documentation with the State Revenue Service (SRS) within 12 months after the end of the financial year. The SRS has recently issued a crucial interpretation stating that the acquisition and disposal of assets includes acquiring shares in another company and is therefore considered a transaction for TP purposes.

22.11.2019

New rules on debt assignment (1/47/19)

Tax CIT

We have informed our MindLink subscribers about proposals for amending the Corporate Income Tax (CIT) Act. This article explores the proposed new rules for assigning receivables.

15.11.2019

Cash flow statement: meaning and practical use (3) (3/46/19)

Accounting Tax

This article completes what we wrote in the last two weeks.

15.11.2019

Transaction recognised as transfer of business, not supply of goods (2/46/19)

Legal Tax VAT

Hiding the true substance of one transaction by substituting another to obtain a tax advantage is not an unusual case heard by the courts. This time the court ruled in favour of the State Revenue Service (SRS) after finding that a taxable person had wrongly deducted input VAT according to a supplier’s pro forma invoices for the purchase of movables, because the real transactions are recognised as the transfer of a business as a going concern, which is outside the scope of VAT.

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.

08.11.2019

Cash flow statement: meaning and practical use (2) (2/45/19)

Accounting Tax

This article picks up where we left off last week.

08.11.2019

Is input VAT deductible after breach of industry rules? (1/45/19)

Tax VAT

We have written earlier about the Supreme Court of Latvia asking the Court of Justice of the European Union (CJEU) to make a preliminary ruling on Altic SIA (the “Company”) vs the Latvian State Revenue Service (SRS) regarding a possible breach of food industry rules in relation to input tax deduction rights. This article explores the CJEU’s Ruling C-329/18.

07.11.2019

Tax developments in Estonia (3/45/19)

Tax CIT

This article highlights two important pending changes to Estonian tax laws.

02.11.2019

Cash flow statement: meaning and practical use (2/44/19)

Accounting Tax

The cash flow statement (CFS) is a statutory financial statement to be prepared in Latvia by only medium and large companies (sizes defined by the Company and Consolidated Accounts Act). There are not many companies of this size against the total number of companies in Latvia, and even the ones covered by this requirement often approach the CFS as a formal requirement that gives no benefit to their management. Is that true? Not quite, and let’s explore why.

02.11.2019

Cash pool: transfer pricing aspects (3) (1/44/19)

Tax Transfer pricing

To complete our series of articles on the transfer pricing (TP) aspects of a cash pool, this article explores what data and sources are used in practice for setting fees (interest rates) for cash pool members depositing and borrowing cash.

02.11.2019

Economic substance (3/44/19)

Legal Tax CIT

To fight fraud and tax avoidance at national and international level, EU authorities are drawing up appropriate rules and explaining relevant concepts. Recent years have seen member states passing anti-avoidance rules into their national legislation and double tax treaties according to OECD guidelines. These circumstances emphasise the need to assess the commercial content and business purpose of transactions carried out by multinational enterprises. Economic substance is a key criterion we should assess to determine whether a company’s profit is taxed where it is really earned and whether there is any tax avoidance. This article explores the concept of economic substance.

Page

from 79

Topical

Read more

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!

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.

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