Tax

01.09.2017

Amendments to Labour Code (2/35/17)
Tax
Amendments to the Labour Code effective from 16 August 2017 bring a number of significant changes. This article explores amendments relating to competition restraints, side jobs, overtime, and extra leave.
01.09.2017

Corporate tax reform: lending to related parties (1/35/17)
Tax CIT

We continue to inform you on the new Corporate Income Tax (CIT) Act.
25.08.2017

Legislation on annual accounts and group accounts to be amended (2/34/17)
Tax
Given the long-term development plan arising from the National Tax Policy Framework for 2018–2021 and the short-term strategy for 2017–2019 drawn up by the Ministry of Finance, a set of proposals have been drafted for amending the Annual Financial Statements and Consolidated Financial Statements Act. The proposals aim to promote a positive investment climate and to make Latvia’s business environment more competitive internationally. This article explores the aims and ideas underpinning the current rules and the proposed amendments.
25.08.2017

EU court on VAT treatment of export related services (3/34/17)
Tax VAT
On 29 June 2017 the Court of Justice of the European Union (CJEU) passed judgement on case C-288/16 concerning a VAT exemption on services connected with the export or import of goods. The Latvian Supreme Court had requested a preliminary ruling from the CJEU in a dispute between IK “L.Č.” and the Latvian State Revenue Service (SRS) on how to interpret Article 146(1)(e) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. This clause allows member states to exempt VAT on services, including transport and ancillary transactions, that are directly connected with the export or import of goods. We will explore some of the court findings.
25.08.2017

Corporate income tax reform (cont.) (1/34/17)
Tax CIT

The first article in our corporate income tax (CIT) series mentioned the concept of deemed distribution of profit introduced by the new CIT Act. Deemed distributions will be considered to take place if a company incurs non-business expenses, lends to related parties, shares out surplus assets on winding-up, pays excessive interest, etc. This article explores the CIT treatment of one type of deemed distribution: non-business expenses.
17.08.2017

Lithuanian tax news (3/33/17)
Social insurance Legal Business Tax
This article offers a summary of recent legislative developments in Lithuania.
17.08.2017

Deducting input VAT paid before VAT registration (2/33/17)
Tax VAT
It is not unusual for traders not to register for Latvian VAT right after they are incorporated and to do so at a later date. What invoices qualify for deduction of input VAT? Can input VAT be deducted only on invoices that were issued and received after the trader registered for VAT?
17.08.2017

Tax reform: new corporate tax calculation model (2) (1/33/17)
Tax CIT
Last week we outlined some of the latest developments in corporate income tax (CIT) treatment. This article continues exploring key changes.
10.08.2017

Multinational enterprises: country by country reporting (2/32/17)
Tax Transfer pricing
A taxpayer within a multinational enterprise (MNE) group is required to file a country-by-country report with the State Revenue Service (SRS) by 31 December 2017 or to notify the SRS of the group company filing that report and of its tax residence by 31 August 2017. Conditions that dictate the filing, notification and related matters are determined by the Cabinet of Ministers. This article takes a look at the main points.
10.08.2017

External accountant’s obligation to report suspicious transactions (3/32/17)
Accounting Tax
The Financial Action Task Force (on Money Laundering) has prepared recommendations for measures to stop money laundering and the funding of terrorism. At EU level these requirements are part of Directive (EU) 2015/849 of 20 May 2015. The recommendations have been passed into Latvian legislation, and the requirements of the directive are to be adopted in the near future. The Council of Europe’s Moneyval Committee is to visit Latvia this autumn in order to assess the efficiency of Latvia’s anti-money laundering and counter-terrorist financing system. Since tax consultants and external accounting service providers are required to report suspicious transactions, this article explores certain statutory requirements and aspects to consider when dealing with customers.
10.08.2017

Tax reform: new corporate tax calculation model (1/32/17)
Tax CIT

On 28 July 2017 Parliament adopted amendments to the Corporate Income Tax (CIT) Act in their final reading, significantly changing the principles of CIT treatment. The new CIT model largely resembles the one Estonia adopted 17 years ago (see our Flash News edition of 18 May 2017) which provides for paying tax at the time any profit is distributed (including deemed profit distributions). This article explores some of the new principles for calculating CIT.
04.08.2017

Tax reform: changes affecting royalty recipients and self-employed persons (2/31/17)
Social insurance Tax PIT
We have written about proposed changes in the area of social insurance. This article explores practical changes affecting individuals that receive royalties and self-employed persons in terms of mandatory national social insurance (NSI) contributions and pension insurance contributions.
04.08.2017

Employee shares and stock options (3/31/17)
Legal Tax Employees
In today’s business environment the remuneration of a company’s key employees and management often includes something in addition to fixed salaries and bonuses. Some of the instruments aimed to motivate employees may even be unregulated. In reaction to these market trends, Parliament has passed extensive amendments to the Commercial Code this summer, which, among other things, change the treatment of employee shares and introduce new rules for the issue of employee stock options. This article explores some of these amendments.
27.07.2017

BEPS: Multilateral Convention Bill (2/2) (2/30/17)
Tax Transfer pricing

This article completes what we wrote on this topic last week.
27.07.2017

Personal Income Tax Act to be amended (1/30/17)
Tax CIT PIT
On 9 May 2017 the Cabinet of Ministers decided to support the National Tax Policy Framework 2018–2021, which provides for a major overhaul of the tax system. A set of proposals for amending the Personal Income Tax (PIT) Act, supported by the Cabinet of Ministers, are now publicly available. As well as differential rates of PIT on different levels of income, many other important amendments are being proposed. This article explores what we see as key changes.
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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.
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