Avoidance of double taxation in Latvia
Double tax agreements in Latvia
Tax treaties protect both taxpayer and state interests. It is a guarantee for sustainable business development abroad, and a legal basis for the cooperation of the states and the fight against tax evasion. Double tax agreement (DTA) in Latvia covers provisions concerning the passive and active income of respective tax residents, investment issues, double taxation preventions provisions, tax rates, and other conditions acting in the Contracting States. So a comprehension and knowledge of needed agreement on double taxation and timely tax lawyers assistance in Latvia it’s the guarantee of successful business conduct in Baltics, including Latvia.
To make sure that you do not need to pay tax on the same income twice you need to follow double tax agreements in Latvia. To avoid double taxation many tax treaties have been adopted in Latvia. Since 1992 62 tax treaties signed by Latvia, and many are still in the pipeline. Double tax agreements in Latvia have a direct impact on the economic activity of a business entity, so a correct application of the tax treaties signed by Latvia will help optimize business costs and bring it to a new stage of development.
Since 1992 62 tax treaties signed by Latvia have entered into force. Currently Latvia has signed tax treaties with Albania, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, People's Republic of China - protocol amending Latvia – China bilateral tax treaty dated of 07.06.96., Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia - Protocol amending Latvia – Georgia bilateral tax treaty dated of 13.10.04., Isle of Man, Germany, Greece, Hong Kong, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Kuwait, as also double tax agreements with Kyrgyzstan, Lithuania, Luxembourg, Macedonia, Malta, Mexico, Moldova, Montenegro, Morocco, Netherlands, Norway, Poland, Portugal, Qatar, Romania, Russia, Serbia, Singapore - protocol amending Latvia - Singapore bilateral tax treaty, dated of 06.10.99., Singapore - protocol amending Latvia - Singapore bilateral tax treaty dated of 06.10.99., Slovakia, Slovenia, Spain, Sweden, Switzerland – protocol amending Latvia - Switzerland bilateral tax treaty dated of 31.01.02., Tajikistan, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Viet Nam.
With Bosnia and Herzegovina, Egypt, Kosovo, Mongolia, Pakistan, Saudi Arabia, Tunisia bilateral tax treaties have been initialled but have not been signed. Besides, with Bahrain, Ethiopia, Iran, South Africa, Sri Lanka the negotiations have been initiated.
To find out more about double tax agreements in Latvia and features related to double taxation, please contact our tax lawyers in Latvia at info@gencs.eu.
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