Flash News Archive

The amount of information at a related company’s disposal often plays a key role when setting transfer prices in dealings with related foreign companies. For example, the parent company may incur management fees in several subsidiaries, but the Latvian company may have no information about the underlying costs of management services being acquired. This article explores what can happen if a Latvian company is unable to give adequate information about its transactions with related companies on a tax audit conducted by the State Revenue Service (SRS). Read further »

The present economic situation is increasingly forcing banks to repossess and auction mortgaged assets. Some of the issues arising from such auctions were debated during a recent PwC hosted discussion on the VAT treatment of mortgaged asset sales. We invited the largest Latvian banks to take part in this discussion highlighting some of the problems that forthcoming changes to the VAT Act may bring. Since the matters we discussed are likely to interest a wider circle of readers, this article offers a summary of the discussion. Read further »

In our Flash News edition of 9 March 2010 we informed our subscribers of the proposed introduction of a compulsory packaging deposit scheme. This article takes a look at how this will affect the natural resource tax (NRT) treatment of packaging. Read further »

Following the article we posted in our Flash News edition of 29 June 2010 about reclaiming VAT paid abroad, this article explores how to properly complete a refund claim on the Electronic Declaration System (EDS) maintained by the State Revenue Service and when the claimant can expect to get the money back. Read further »

To complete the article we posted in our Flash News edition of 6 July 2010 about recent amendments to the residence permit rules, this article explores the criteria for taking out a repeat temporary residence permit. Read further »

We have informed our subscribers that European Parliament and Council Regulation (EC) No 987/2009, which lays down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems, came into force on 1 May 2010. This article takes a look at the A1 certificate, which replaces the E101 certificate. Read further »

Proposed amendments to Cabinet Regulation No. 933 of 14 November 2006, which clarifies the application of the VAT Act, have reached the final phase of review by the Cabinet of Ministers. The amendments are intended to clarify certain provisions of the VAT Act, thus making it possible to apply the latest amendments to the VAT Act in a better way, and to eliminate scope for conflicting interpretations. Read further »

New Residence Permit Rules came into force on 1 July this year to replace Cabinet Rule No. 326 of 30 March 2010, which we discussed in our Flash News edition of 11 May. The new rules have been drawn up in the light of recent amendments to the Immigration Act (Flash News of 8 June). This article explores changes in the way invitations are issued to foreign nationals. Read further »

In this article we are sharing our experience of whether it is possible to reclaim a personal income tax credit where national insurance contributions have been paid in Latvia on wages earned from a Lithuanian company. Read further »

This article summarises the current information about the personal income tax treatment of gifts made to individuals. Read further »