The government decided to increase the monthly minimum wage from EUR 320 to EUR 360 starting January 1, 2015. The decision to increase the monthly minimum wage will help gradually reduce income inequality in society.
From 1 July 2014 changes to the Commercial Law of Latvia allow companies to pay dividends (extraordinary dividends) from the profits of the current year. Only 85% of the profit from the current year may be paid out as dividends. Amendments to the articles of association regarding extraordinary dividends For the company to be able to declare extraordinary dividends, the company must first make amendments to its articles of association providing that dividends may be defined and calculated from the profit gained in current financial year. Amendments to...
Please find the presentation about taxes on individuals in Latvia, 2014. This presentation provides an overview of Latvian Personal Income tax and other indirect taxes what residents and nonresidents need to know. The general principle followed within taxation of private individuals is that Latvian tax residents are taxed on their worldwide income, but Latvian non-residents for tax purposes are taxed on their Latvian sourced income, i.e. income attributable to Latvia. The taxable object of Latvian tax resident shall be all types of income, unless...
Please find the presentation about the CIT in Latvia, 2014. This presentation provides an overview of what Latvian Corporate Income tax payers need to know. Here are changes included in effect for 2014 that can influence your business and the amount of CIT payable. Please note the changes in the legislation regarding dormant companies, the monthly payment of EUR 50 had been introduced. Amendments are made with regard to taxation on payments to legal persons established in black-listed jurisdictions (see presentation for the list). To...
Starting 1 January 2014, according the changes in the Law "On Personal Income Tax" loans granted to individuals and not repaid within 6 months after the loan maturity date (but not later than 66 months from the loan issue date), will be considered comparable to taxable income and thus subject to PIT. Benefit gained from reduced interest rates will also be subject to PIT at the standard 24% rate, except for loans provided by individuals. Under the new amendments in the Law "On Personal Income Tax" , the following loans will be...
