The Latvian lawmakers passed Latvia’s 2017 budget on 24 November 2016. The main measures concerning corporate taxation are summarized below.
At present, losses incurred in taxable periods from 2008 on wards may be carried forward indefinitely. However, under the amendments, such losses brought forward may be set off against not more than 75% of the taxable income for a tax period. The time period within which an investment project must be approved or rejected by the government is extended from 3 to 12 months as from the date the project is received by the Ministry of Finance. To reduce the administrative burden for taxpayers, advance payments of tax will be calculated by the tax authorities. The consumer price index adjustment will no longer be used for the calculation of advance payments.
