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How to use the new corporate income tax regime for investment purposes

The new corporate income tax is payable (20/80) upon the distribution of the profits. With respect to the investment of shares there are several goods things: #1 Pass-through dividends are not taxed,  #2 Capital gains from the sale of shares in the hands of the Latvian holding company are not taxed until the profit distribution  #3 Capital gains can be distributed tax-free if the shares were held for more than 3 years before the sale of shares. So, how to […]

Changes in the Latvia tax laws effective as of 1 January 2018

Corporate income tax In the new Latvian Corporate Income Tax Act (hereinafer – the Act) a conceptually new regime for payment of the corporate income tax was established. The act intends to postpone payment of the tax until the profit is distributed or in other way redirected to the expenses that do not ensure further development of the taxpayer, i.e. taxation is transferred from the moment of the derivation of profit to the moment of the distribution of profit. Thus the […]