Flash News Archive

In this article we will explore how an existing or a newly-formed private limited company can qualify for microbusiness tax (MBT). Read further »

A decision by the State Revenue Service (SRS) assessing a tax debt and a late charge on a taxpayer is enforceable as soon as the taxpayer’s appeal has been rejected by the SRS Director General. However, the part of that decision imposing a penalty is suspended once the taxpayer has filed a petition with the administrative court. Read further »

It has been a long time since the Government introduced corporate income tax (CIT) relief for investments over 10 million lats, with only a few companies claiming it successfully before the clause was deleted from the CIT Act. New amendments to this law are now in the pipeline to encourage investment by giving companies another chance of claiming tax relief on large investments they make in qualifying industries. Yet companies will have to take their investment decisions quickly, as investment projects must be completed in 2013. This article highlights the proposed arrangements. Read further »

In addition to private and public limited companies, which are the most common form of business, it is also possible to set up a general or limited partnership. The activities of companies and partnerships are governed by the Commercial Code, whereas a partnership agreement as the basis for establishing a partnership is dealt with in more detail by the Civil Code. The purpose of a partnership as well as a company is to carry on business and make a profit, but their legal form, structure and liability limit are different. Read further »

A couple of weeks ago the Organisation for Economic Cooperation and Development (OECD) approved significant changes to the Model Tax Convention and to the Transfer Pricing (TP) Guidelines for Multinational Enterprises and Tax Administrations, as well as approving the final report on the attribution of profit to permanent establishments. This article explores what we perceive as key changes. Read further »

To pick up where we left off in our Flash News edition of 27 July 2010, this article discusses how to reclaim amounts of VAT overpaid in tax periods preceding this July. Read further »

A draft Cabinet regulation, announced on 22 July this year at a meeting of state secretaries regarding tax debt guarantees for customs clearance purposes, includes provisions for applying guarantees on all taxes (customs, excise and VAT) administered in a customs clearance process. The draft combines the existing guarantee arrangements for securing all customs procedures with additional criteria that a trader must meet in order to qualify as reliable in the context of customs-related activities and to obtain an exemption from a guarantee. This article highlights this key provision of the proposed rules. Read further »

Section 154 of the Commercial Code has been amended with effect from 1 July this year to lay down the procedure for valuing contributions in kind. This article takes a look at these changes as well as exploring Cabinet Regulation No. 598 of 29 June 2010, which lays down the procedure for maintaining an official list of valuers and defines the criteria that candidates must satisfy. Read further »

The VAT group is still a new concept for Latvian businesses and tax authorities to grasp. A key advantage of the VAT group is that supplies between its members attract no VAT. This article explores more opportunities for optimising VAT costs through a VAT group. Read further »

Sections 12.2 through 12.11 of the VAT Act are now in force, laying down the procedure for refunds of VAT credits arising after June this year. Read further »