19.04.2018
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Taxation of permanent establishments under new CIT Act (3/16/18)

Tax CIT
This article describes the rules for taxing a permanent establishment (PE) in Latvia under the new Corporate Income Tax (CIT) Act effective from 1 January 2018. The new CIT regime is based on the taxation of distributed profits, while retained earnings are not taxed. This raises the question of what is a profit distribution in a non-resident company’s PE or branch since they cannot pay dividends.

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