All Flash News

Flash News offers the latest information on current tax, accounting, legal and other business issues.

Accounting AML Artificial Intelligence (AI) Automation Brexit Business Car tax Case law CIT Covid-19 Customs Diversity & Inclusion E-invoicing Employees ESG Excise Free access Legal Microbusiness NRT PIT Real estate Social insurance Stamp State Aid Tax Technology Transfer pricing Ukraine VAT WHT
16.08.2019

Corporate Income Tax Act to be amended (2) (2/33/19)
Tax CIT
This article completes what we wrote last week about proposals for amending the CIT Act.
09.08.2019

CIT and VAT treatment of executive luxury vehicle lent for use (3/32/19)
Tax CIT VAT
The State Revenue Service has published an advance tax ruling (ATR) on the CIT and VAT treatment of an executive luxury vehicle (ELV) lent for use. This article explores the ATR conclusions.
09.08.2019

Latest VAT developments (2) (2/32/19)
Tax VAT
This article picks up where we left off last week.
09.08.2019

Corporate Income Tax Act to be amended (1) (1/32/19)
Tax CIT
In late June 2019 the Meeting of State Secretaries debated proposals for amending the Corporate Income Tax (CIT) Act. We will be commenting about the proposed amendments in two articles.
02.08.2019

Cash pool: statutory aspects (2) (3/31/19)
Legal Tax
This article completes what we wrote last week.
02.08.2019

De minimis aid scheme: new EDS feature (2/31/19)
Accounting Tax
Taxpayers may have recently noticed that the State Revenue Service’s Electronic Declaration System (EDS) features a new functionality, de minimis. Let’s explore what this is all about.
02.08.2019

VAT aspects of sharing economy (3) (1/31/19)
Tax VAT
This article again picks up where we left off about sharing economy.
26.07.2019

Cross-border business: any threat of cross-border insolvency? (2) (3/30/19)
Legal Tax
This article completes what we wrote last week.
26.07.2019

Cash pool: statutory aspects (1) (2/30/19)
Legal Tax
Credit institutions operating in Latvia offer their customers an opportunity to take part in cash pools, but the process of setting up and maintaining a cash pool involves some tax and legal risks, as well as raising many questions, which may deter persons from cutting their costs and managing their cash efficiently. This instalment in our series of articles analyses the legal risks and implications of a cash pool. Some of the aspects of setting up and managing a cash pool will depend on whether it is intragroup or combines funds of unrelated parties. This article explores the two types of cash pooling and their legal implications.
26.07.2019

Latest VAT developments (1) (1/30/19)
Tax VAT
Earlier this summer, Parliament adopted some long-awaited amendments to the VAT Act and to the Cabinet of Ministers’ Rule No. 17 of 3 January 2013, "Application of provisions of the VAT Act and certain requirements for paying and administering VAT." This series of articles explores what we see as key changes to the VAT treatment.
19.07.2019

Receipt lottery in Latvia and abroad (3/29/19)
Tax PIT
To fight the shadow economy, a number of European countries offer their residents a variety of benefits in exchange for honest payment of taxes. Those benefits include a national lottery in which cash-register receipts for goods and services take part in various prize draws. Latvia launched its first receipt lottery on 1 July 2019.
19.07.2019

Cross-border business: any threat of cross-border insolvency? (1) (2/29/19)
Legal Tax
EU registered companies are increasingly doing business across the EU by setting up branches, subsidiaries, or permanent establishments. Cross-border business is an outcome of the free market economy that favourably affects society, including corporate competitiveness, employment, innovation, and overall economic growth. However, if a company’s financial indicators suggest any financial difficulties, then it should consider insolvency proceedings. An insolvent cross-border company has a number of questions including which court has jurisdiction to hear an insolvency petition and which national law will govern it. This article explores key aspects of starting cross-border insolvency proceedings.
19.07.2019

Cash pool: from A to Z (2) (1/29/19)
Tax CIT
This article picks up where we left off on the subject of cash pools and explores whether taking part in a cash pool creates a taxable item.
11.07.2019

Anti Money Laundering and Counter Terrorism Financing Act amended (3/28/19)
Legal Tax AML

29 June 2019 is the effective date of amendments to the Anti Money Laundering and Counter Terrorism Financing Act supported by Parliament in their third reading on 13 May. The Act has been renamed the Anti Money Laundering and Counter Terrorism and Proliferation Financing Act.
11.07.2019

Fellow subsidiaries as related parties in transfer pricing (2/28/19)
Tax CIT Transfer pricing
Some of the substantial changes made to Latvia’s transfer pricing (TP) rules effective from 1 January 2018 prescribe how corporate income tax (CIT) payers should identify related parties before reporting and analysing their mutual transactions in their TP documentation. This article explores whether fellow subsidiaries are treated as related parties and offers a practical example of identifying this status.
11.07.2019

Medium, large and group parent companies to file accounts soon (1/28/19)
Accounting Tax
The Company and Consolidated Accounts Act requires that medium, large and group parent companies preparing consolidated accounts should post an electronic copy of their company and consolidated accounts on the Electronic Declaration System (EDS) of the State Revenue Service (SRS) within seven months after the end of the financial year, along with a statement of when those accounts were approved.
09.07.2019

Fellow subsidiaries as related parties in transfer pricing 1/28/19
Free access Tax Transfer pricing

Some of the substantial changes made to Latvia’s transfer pricing (TP) rules effective from 1 January 2018 prescribe how corporate income tax (CIT) payers should identify related parties before reporting and analysing their mutual transactions in their TP documentation. This article explores whether fellow subsidiaries are treated as related parties and offers a practical example of identifying this status.
05.07.2019

VAT exemption on culture events (3/27/19)
Tax VAT
Taxpayers are unsure how various culture services qualify for a VAT exemption available under section 52(1)(17) of the VAT Act. This article explores the Finance Ministry’s comments and the situation in the European Union.
05.07.2019

Cash pool: from A to Z (1) (2/27/19)
Tax CIT
Latvia’s corporate income tax (CIT) reform has triggered discussions about the concept of cash pooling, which is still one of the top three uncertain areas in terms of CIT treatment. To understand why there is so much buzz about this, we offer a series of articles exploring the tax and legal implications of cash pooling, and relevant transfer pricing issues.
21.06.2019

European Single Electronic Format will change life of entities listed on regulated markets (2) (3/25/19)
Tax
This article completes what we wrote last week.
21.06.2019

VAT aspects of sharing economy (2) (2/25/19)
Tax VAT
To pick up where we left off, this article explores the VAT treatment of business done by a sharing economy platform.
14.06.2019

European Single Electronic Format will change life of entities listed on regulated markets (1) (3/24/19)
Tax
We have recently heard a lot about the regulators’ and investors’ growing interest in processing financial data in a faster and better way, about financial statements in PDF being lengthy and unusable, nobody reading them, etc. The European Commission is holding up the European Single Electronic Format (ESEF) as a solution to these problems. From the financial year 2020 onwards, all entities listed on a stock exchange will be required to file their consolidated statements in a specified format using defined tags.
14.06.2019

Unexpected overpayment of income tax in Electronic Declaration System (2/24/19)
Tax PIT
Individuals preparing their annual income tax return this spring had to consider the changes made by the tax reform of 2018. Quite a few people preparing the tax return electronically were in for a surprise.
14.06.2019

VAT aspects of sharing economy (1/24/19)
Accounting Tax VAT
The role of the sharing economy is growing across Europe. Perhaps only a few of us had faced it earlier when booking an apartment with Airbnb, but now we can choose from a variety of services using the principles of the sharing economy. This article explores some of its VAT aspects.
07.06.2019

Easy tax treatment of rental income (3/23/19)
Tax PIT
We have had questions about reporting rental income from property and applying easy terms of personal income tax (PIT) where the statutory notification of a tenancy agreement is overdue. This article explores the statutory obligation and case law allowing an individual to charge a 10% PIT on rental income without registering as a trader.
07.06.2019

EU countries competing for wealthy individuals (2/23/19)
Tax PIT
Over 160,000 people in almost 20 EEA countries are avoiding their fair share of local income tax by enjoying special tax schemes for individuals willing to change their tax residence. In the fight for tax revenues, more and more member states are introducing special exemptions to attract the rich and mobile. This article summarises the main takeaways from a recent study.
07.06.2019

Taxpayer’s explanations during audit (1/23/19)
Legal Tax
Explanations given by a taxpayer facing a tax audit become an important source of information. We have seen some typical mistakes a person makes in giving explanations to the tax authority. Mistakes are often made through lack of understanding or knowledge of the procedures. This article explores some of the aspects to consider in communicating with the tax authority during an audit.
04.06.2019

31.05.2019

Seeing doctor during working hours (3/22/19)
Tax Employees
Employees often have to make an appointment to see a doctor during their working day, so they are absent from work or leave their workplace in the middle of the day. Is the employee entitled to such temporary absence? How do we handle this properly?
31.05.2019

VAT: margin scheme for sales of second-hand vehicles (2/22/19)
Tax VAT

Section 138 of the VAT Act prescribes a special arrangement that allows a taxable dealer supplying second-hand goods to charge VAT on the difference between the selling price and the purchase price. This article explores how the State Revenue Service (SRS) makes this margin scheme for second-hand goods applicable to sales of second-hand means of transport.
Read more
Page
from 40