Latvia to cut standard rate of VAT (1/20/12) (0)

15.05.2012

Draft

The Cabinet of Ministers reviewed a proposal for amendments to the VAT Act on 15 May. The purpose of the amendments is to draw level with Lithuania and Estonia by reducing the standard rate of VAT in order to improve Latvia’s regional competitiveness and mitigate inflationary pressures on the population caused by global price increases. Read more..

Financial transaction tax: background (2/20/12) (0)

15.05.2012

Draft

The European Commission presented its proposal for a financial transaction tax (FTT) directive on 28 September 2011, but the tax has yet to be introduced, its introduction being one of the hottest topics discussed by members of the public. This article explores the background to FTT. Read more..

State Revenue Service clarifies personal income tax treatment (3/20/12) (0)

15.05.2012

Practice

Personal income tax (PIT) returns for 2011 are currently being filed, and this will continue until 1 June 2012. According to amendments to the PIT Act that came into force on 19 October 2011, taxpayers who paid Latvian PIT on their foreign-source employment income in the tax years 2008, 2009 and 2010 are eligible for a refund in the form of a 5% PIT. This article takes a look at comments made by the State Revenue Service (SRS) on the criteria for applying a 5% PIT and on deducting allowable expenses for social insurance purposes. Read more..

Equating qualifications obtained before 2001 (1/19/12) (0)

08.05.2012

Passed

On 28 February 2012 the Cabinet of Ministers passed Regulation No. 142, Equation of Degrees and Professional Qualifications, according to which higher education and qualifications obtained on or before 26 December 2000 will be equated with higher education defined by the Universities Act. So education completed before 1991, 1995 or 2000 will be equated with the degrees and professional qualifications prescribed by the Universities Act. Read more..

Consumer credits: changes in annual interest assumptions (2/19/12) (0)

08.05.2012

Draft

On 12 April 2012 the meeting of state secretaries heard the announcement of amendments to Cabinet Regulation No. 1219 of 28 December 2010 on consumer credits. The proposed changes mainly relate to the introduction of additional technical calculation methods for the calculation of the annual percentage rate of charge and clarify the old procedure as a result of the Member States being required to implement Commission Directive 2011/90/EU. This article explores some of the items that had not been singled out so far. Read more..