Tax services in Latvia
Tax services are one of our core practice areas since the very foundation of the law firm. Our law firm has been recognized by our clients as first tier tax advisor in Latvia. Since 2008 we are also providing tax services in Estonia and Lithuania.
We offer tax advice in international and domestic tax planning, tax litigation, market entry strategies and cross-border tax issues. With our deep knowledge of taxation we are able to offer a truly comprehensive legal service also in other practice areas, such as mergers and acquisitions in Latvia, Lithuania and Estonia..
Before commencing business activities in Latvia, it should be noted that all income derived in Latvia is subject to corporate income tax 15%. There are thin capitalization and transfer pricing rules applicable, as well as there is withholding tax on certain categories of outward payments. However, a recent and attractive possibility is to reduce taxable income by deemed interest rate on retained earnings. That is, companies are able to reduce their effective tax rate, if their shareholders do not distribute retained earnings. Additionally, carry loss forward period is five years.
Another recent development is Micro-Enterprise Tax. This type of tax may be applied on small companies and sole proprietors, whose turnover does not exceed 100 000 EUR per year and who meet several other criteria regarding number and remuneration of employees. The tax rate is only 9% on turnover and it includes corporate income tax, social contributions, personal income tax and other labor related contributions.
In general, VAT registration is mandatory for companies or persons, whose turnover exceeds 14 000 EUR. Different thresholds are applicable for certain categories of goods or for international or intra-Community transactions. Related companies may establish a VAT group by pooling their obligations and rights, while communicating with Latvian tax authority.
For further assistance on tax planning, please contact our law firm.
The full list of fields of our expertise in taxation is as follows:
Tax planning and optimization in Latvia
Tax litigation in Latvia
Appeal of Tax assesments in Latvia
Value added tax in Latvia
VAT in Latvia
VAT registration in Latvia
VAT registration in Baltics
VAT representative in Latvia
Value added tax registration in Latvia
Value added tax fiscal representative in Latvia
Value added tax representative in Latvia
Double taxation treaties in Latvia
Transfer pricing in Latvia
Holding companies in Latvia
Dividend taxation in Latvia
Royalty taxation in Latvia
Permanent establishment tax in Latvia
Independant services tax in Latvia
Dependant services tax in Latvia
Interest tax in Latvia
Business profit tax in Latvia
Income from immovable Property tax in Latvia
Taxation of income Law in Latvia
Tax on capital in Latvia
Exchange of tax information in Latvia
OECD Model tax in Latvia
For questions, please, contact Valters Gencs, attorney at law at email@example.com
The material contained here is not to be construed as legal advice or opinion.