The Latvian State Revenue Service (SRS) on 08 August 2017 announced the Country-by-Country (CbC) reporting regulations, which were approved by the Latvian Cabinet in July following an amendment to the Law on Taxes and Duties to require CbC reports. The regulations are principally in line with BEPS Action 13.
A parent company of an international group that is tax resident in the Republic of Latvia must submit by 31 December 2017 to the State Revenue Service an overview of the group’s economic activities and finances in 2016. The SRS is inviting enterprises to notify the SRS before August 31 whether the report will be submitted as a parent company, an alternate company or as a multinational enterprise group entity.
In Latvia the obligation to prepare and submit a CbC report applies to a taxpayer who is a tax resident of the Republic of Latvia, if it is a parent company of the group and the consolidated turnover of the group is at least 750 million Euros. Also a tax resident of Latvia may be appointed as a substitute company for submission of the CbC report if there is an obstacle to the group parent company submitting a report in another country.
The CbC report for the previous year has to be submitted by December 31, 2017, using the form for completion of the report available in the Electronic Declarations System (EDS). The relevant form will be placed in the EDS during the fourth quarter of this year.
