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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 invest tax-wise?

 

 

Latvian investment company

 

#1. Invest.

#2. Dividends received from the portfolio distribute as pass-through dividends tax- free

#3.Capital gains, if the share were held for more than 3 years,  distribute as dividends. Capital gains, if less than 3 years, reinvest in the portfolio.

The investment strategy in should be oriented to investment in long-term securities, thereby, allowing to avoid taxation at all.

For more information, please mail to arturs@breicis.com.

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