Insights

Amendments to 11 tax laws were adopted by the Parliament on July 28, introducing a wide tax reform in Latvia effective beginning with January 1, 2018.

Key tax changes in Latvia

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Reverse charge for supplies of mobile phones, tablets and laptops

Amendments to the Labour Law

Most important Latvian tax changes in 2016

New regulation for real estate tax in Riga

Micro-enterprise taxpayer as a leased personnel service provider

Tax and legal news- Interim Dividends

The Register of Enterprises requires to update shareholders’ register information. New changes regarding the Board members are on track Using licensed software

The application of VAT for electronically supplied services has been changed in Latvia and other member states of the EU since 2015. Electronically supplied services are those services which are delivered over the Internet or via the electronic network – such supply of services is essentially automated and involves minimal human intervention. It is deemed impossible to render electronically supplied services without any information technology. Please see the list:

Deemed income of the Member of the boardEnterprise income tax minimum As mentioned before, The minimum wage is changed from 320 to 360 euros. Also the minimum wage per hour is increased to 2.166 euros (before it was 1.933 euros). Maximum threshold of the following social allowances has been canceled: sickness benefit, unemployment benefit, maternity and paternity benefit, parental allowance. Personal income tax is reduced form 24% to 23%. The State family allowance is increased – 11.38 euros for the first child, 22.76 for the second and 34.14 euros for each following. Increased tax rate for the microenterprises from 9% to 11% (for the part of turnover exceeding the threshold of EUR 7000). A new Law of Arbitration is enforced starting from 1st of January 2015 thus abolishing Part D of the Civil Procedure Law

We hereby remind that on June 1, 2014 Cabinet regulations comes into force, according to which the payroll tax books issued in paper form will no longer be valid. Instead, the payroll tax books will be issued in electronic form.

Starting from 1st of January 2014, it will no longer be possible to transfer losses in between companies in a group. The current amendments are already scrutinized and partly adopted in the Parliament of the Republic of Latvia (The Parliament).

Information about the draft of ammendments to Individual Income Tax law