29.03.2022
Latviešu Русский
Download Print
Other opportunities
Download Print

Types of permanent establishments and corporate taxation 3/13/22

Business Tax CIT

A foreign company planning to do business in Latvia can choose between registering a subsidiary or operating through a branch. This choice is commonly dictated by the group’s governance strategy and long-term plans in Latvia. A foreign company going for a simplified arrangement can register either a branch with the Enterprise Registry or a permanent establishment (PE) with the State Revenue Service (SRS) only for paying Latvian corporate income tax (CIT). This article outlines some CIT and accounting issues relevant to PE activities in Latvia.

Share the article

If you have any comments on this article please email them to lv_mindlink@pwc.com

Ask question

Related articles

See all Flash News
07.03.2022

Hybrid mismatches – new element of corporate tax base (2) 3/10/22
Tax CIT

This article completes what we wrote last week.
01.03.2022

Terms “state institution,” “government-funded establishment” and “state-owned company” explained for corporate tax purposes 1/9/22
Tax CIT

When it comes to applying the corporate income tax (CIT) provisions for penalties and donations in practice, we have to deal with the terms “state institution,” “government-funded establishment” and “state-owned company,” which are not defined in the CIT Act or in the rules explaining its application. In this article we explain these terms for CIT purposes.
23.03.2021

Corporate tax treatment of expenses attributed to permanent establishment in Latvia 3/12/21
Tax CIT

A non-resident company that allocates various expenses to its permanent establishment (“PE”) in Latvia might wonder whether the PE can fully deduct all those expenses for corporate income tax (“CIT”) purposes. This article explores the non-resident’s staff cost allocations to the PE.