Cooperation, EU – Baltic States, Financial Services, Latvia, Taxation

Markus Niklaus Paul Dutly today signed a protocol amending the Latvian-Swiss convention for the avoidance of double taxation with respect to taxes on income and capital that was signed on January 31, 2002. The amendments will stimulate business activity in Latvia and Switzerland and facilitate foreign investments.

"This is the first protocol to a convention for the avoidance of double taxation signed by Latvia after it became a full-fledged member of the Organization for Economic Cooperation and Development (OECD). The signing of this protocol will not only strengthen the existing tax system but will also provide an impetus for broader bilateral economic cooperation, including in regard of foreign investments and business development," Reizniece-Ozola said.

The protocol will ensure a more favorable tax regime for residents of Latvia and Switzerland by setting tax caps in respect of passive income derived in Latvia or Switzerland, such as dividends, interest payments and royalties.

Both countries will also step up cooperation in tax administration and information exchange in accordance with the OECD standards.