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International Internet Magazine. Baltic States news & analytics Thursday, 25.04.2024, 21:15

New requirement to oblige Latvian entrepreneurs to inform revenue service about deals with offshore

BC, Riga, 04.02.2016.Print version
New amendments to the law on corporate income tax in Latvia, which Saeima has passed in the final reading, will oblige payers of corporate income tax to inform the State Revenue Service about all deals with entities registered in low tax and tax-free areas, as well as about payments to nonresidents, informs LETA.

Under the new legislation taxpayers will be required to inform the tax authority about the payments made to nonresidents and taxes charged on these payments in line with the regulation on the provision of such information, the Saeima press service said.

 

Information will have to be provided to the State Revenue Service also about payments not liable for corporate income tax, such as dividends, interest or royalties.

 

The legislative amendments were drawn up in order to fully transpose EU directives on administrative cooperation on taxes, specifically, the requirement to ensure automatic exchange of information about nonresidents' income. For the time being, the State Revenue Service receives incomplete information about such transactions.

 

The new requirements will apply to payments made to nonresidents starting January 1, 2017.





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