Latvia: Parliament passes new CFC rules
On 13 December 2018, Latvian parliament Saeima passed a law of amending the corporate income tax act which provides for the implementation of new controlled foreign company (CFC) rules in line with the EU Anti-Tax Avoidance Directive (ATAD). The
See MoreLatvia: Parliament adopts regulation with new requirements for transfer pricing documentation
On 25 October 2018 the Parliament approved amendments to the law ‘On taxes and duties’ which introduce in Latvia the OECD format of the transfer pricing documentation. The law was published on 14 November 2018 as the official Gazette no
See MoreIMF report looks at fiscal policy in Latvia
On 6 September 2018 the IMF issued a report following the conclusion of discussions with Latvia under Article IV of the IMF’s Articles of Agreement. Economic growth rose in 2017 owing to increasing wages, recovery of private investment and faster
See MoreLatvia: Cabinet Ministers approves a draft bill on Master and Local file
Recently, the Latvia Cabinet of Ministers has approved a draft law for the introduction of Master and Local file requirements in line with BEPS Action 13. Under the law, taxpayers resident in Latvia are required to submit Master file within 12
See MoreWorld Bank: Project to improve tax collection in Latvia
A press release of 18 December 2017 announced that the World Bank is to assist Latvia’s tax administration to increase tax collection by improving revenue mobilization and reducing compliance costs. The project is partly financed by the European
See MoreLatvia changes taxable base for social security contributions in 2018
The Cabinet of Ministers of Latvia has adopted a regulation amending the ceiling of the taxable base cap for social security contributions. Under this Regulation, the annual taxable base (income) cap per employee for social security contributions is
See MoreLatvia: Parliament approves protocol to tax treaty with Singapore
On 30 November 2017, the Latvian Parliament agreed to ratify the protocol to income tax treaty with Singapore. The protocol was signed on 20 April 2017 to amend the income tax treaty of 1999. The protocol will enter into force once both parties have
See MoreDouble tax treaty between Hong Kong and Latvia enters in to force
On 24 November 2017, the Double Taxation Agreement (DTA) between Hong Kong and Latvia was entered into force after the completion of ratification procedures on both sides. The agreement was signed on 13 April 2016. The treaty provides for reduced
See MoreLatvia and Pakistan sign an agreement on avoidance of double taxation
Pakistan and Latvia on October 25, 2017, after the second round of negotiations, concluded an agreement on the Avoidance of Double Taxation with regard to income tax and prevention of tax evasion and avoidance (ADTA). Avoiding the double taxation
See MoreLatvia and Vietnam sign an agreement for the avoidance of double taxation
On October 19, 2017, an intergovernmental agreement on the elimination of double taxation and the prevention of fiscal evasion with respect to income tax was concluded between the Republic of Latvia and the Socialist Republic of Vietnam. The
See MoreLatvia and Oman sign a MOU on bilateral political consultations
On 18 September, during the 72nd session of the United Nations General Assembly in New York, the Minister of Foreign Affairs of Latvia, Mr. Edgars Rinkēvičs, met with Mr. Yusuf bin Alwi bin Abdullah, the Sultanate of Oman’s Minister
See MoreLatvia: Parliament passes new corporate tax law
The Latvian parliament passed a new corporate tax law on 28 July 2017. The law will enter into force on 1 January 2018. Unlike the current corporate income tax (CIT) regime, the proposed CIT regime is based on a cash-flow taxation model, which
See MoreLatvia: State Revenue Service announces CbC reporting regulations
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.
See MoreU.S. and Latvia sign agreement on the exchange of CbC reports
According to an IRS announcement on its website, the competent authorities of U.S. and Latvia have concluded an arrangement on the exchange of Country-by-Country Reports. The competent authority arrangement (CAA) for exchange of country-by-country
See MoreSwitzerland’s Federal Council adopts dispatch on revised DTA with Latvia
The Federal Council of Switzerland adopted the dispatch on a revised double taxation agreement (DTA) with Latvia on 28th June 2017 regarding taxes on income and capital. The dispatch was submitted to Parliament for approval. Switzerland and Latvia
See MoreJapan: DTA with Latvia entered into force
The Japanese Ministry of Finance issued a press release on 5 July 2017, announcing that the exchange of diplomatic notes between the Government of Japan and the Government of the Republic of Latvia for entry into force of the Convention between
See MoreLatvia signs OECD Multilateral Instrument
On 7 June, the Foreign Minister signed, on behalf of Latvia, the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, which is to close loopholes in the current bilateral tax treaties and
See MoreLatvia: Government sign a Protocol to amend the double tax agreement
The government signed a Protocol amending the Agreement for the Avoidance of Double Taxation with Singapore on 20 April 2017. The signing took place in Washington D.C. between Senior Minister of State for Finance and Law, Ms Indranee Rajah, and
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