- VAT on import related services
Traders importing goods are aware that import-related services such as carriage, handling, storage and declaring can initially be zero-rated for VAT but eventually should attract a rate of 21% (or 12%).
- Intangible assets: OECD recommendations
The G20 major economies and the Organisation for Economic Co-operation and Development have recently tackled issues of large multinationals pursuing aggressive tax planning policies and shifting their profits to jurisdictions that offer a more generous tax regime.
- Steps to improve information exchange
The OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes signed a declaration of commitment to abiding by the terms of the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information in Berlin on 29 October 2014.
- Tax on goods from tax havens
Amendments to the Corporate Income Tax Act effective from 1 January 2014 have changed the rules for buying goods from tax havens so that Latvian taxpayers are no longer required to withhold a 15% CIT on their arm’s length purchases.
- Income arising on exchange of capital assets
Under the Personal Income Tax Act an individual’s gain from selling a capital asset attracts a 15% tax.
- Triangular transactions
Triangulation is a common scheme for supplying goods across the EU.
- Parking costs: VAT treatment
Asked whether a trader’s parking costs are treated as his general business costs or car running costs, a tax official answered that parking costs are related to car maintenance, during a recent seminar on the latest VAT developments.
- Application of income tax to sailors
Situations where persons employed outside Latvia are subject to double taxation are not infrequent.
- Donations and taxes (3)
This article wraps up where we left off last week.
- Stock option income
From 1 January 2013 the Personal Income Tax Act contains rules for stock options (future purchase rights).
- Donations and taxes
To pick up where we left off on the subject of reporting donations on tax returns, this article offers practical examples of how to report a donation on the VAT return when goods are donated instead of money.
- Business costs or private consumption?
On 16 May 2014 the Administrative Division of the Latvian Supreme Court ruled on the case SKA-58/2014 in favour of the taxpayer.
- Employing foreign nationals in Latvia (2)
To pick up where we left off in our Flash News edition of 3 September about the rules for employing nationals of third countries in Latvia, this article takes a look at foreign nationals allowed to do work in Latvia without obtaining the right of employment and foreign nationals who can obtain the right of employment without restriction (i.e. to work for any employer in any job).
- Donations
Last year the Latvian State Revenue Service provided a certain taxpayer with an advance ruling on how donations made to public benefit organisations should be reported on the corporate income tax return.
- Claiming refund of foreign VAT
We would like to remind our readers that it is still possible to reclaim any VAT paid abroad.
- Late filing of income tax return
An individual is required by law to file an income tax return for a calendar year between 1 March and 1 June in the following year.
- Collecting personal income tax
The Cabinet of Ministers has instructed the Minister of Finance to terminate by 29 September 2014 the agreements with Riga Council and Ventspils Council for the special collection of personal income tax on the grounds that paying PIT into multiple accounts – Riga Council, Ventspils Town Council, and the Treasury – puts an administrative burden on the business community.
- Representation expenses and donations
On 16 May 2014 the Supreme Court made a very interesting ruling on case SKA 58/2014 regarding so-called representation expenses and the treatment of donated funds as donations.
- Financing transactions: a transfer pricing perspective (2)
As part of our discussion about transfer pricing issues in borrowing and lending between related parties, last week we suggested the best approach to documenting functions and risks associated with such financing transactions.
- Court confirms right to recover input VAT
This April the Administrative District Court confirmed a company’s right to recover input VAT on services it had acquired with the intention of buying shares in another company, which was not carried out for valid reasons.