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?
#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.
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