Tax services in Latvia

Tax services has been one of our core practice areas since the very foundation of the law firm. Our law firm has been recognized by our clients as a first tier tax advisor in Latvia. Since 2008 we have also been providing tax services in Estonia and Lithuania.

We offer tax advice in international and domestic tax planning, tax litigation, market entry strategies and cross-border tax issues. Along with our deep knowledge of taxation we are able to offer a truly comprehensive legal service in other practice areas of the corporate and commercial spheres, such as mergers and acquisitions in Latvia, Lithuania and Estonia.

Before commencing business activities in Latvia, it should be noted that all income derived in Latvia is subject to corporate income tax at 15%. There are thin capitalization and transfer pricing rules applicable, as well as withholding tax on certain categories of outward payments. However, a recent and attractive development is the possibility to reduce taxable income by deemed interest rate on retained earnings. That is, companies are able to reduce their effective tax rate, if their shareholders do not distribute retained earnings. Additionally, the period for carrying loss forward is five years.

Another recent development is Micro-Enterprise Tax. This type of tax may be applied on small companies and sole proprietors, whose turnover does not exceed 100 000 EUR per year and who meet several other criteria regarding number and remuneration of employees. The tax rate is only 9% on turnover and it includes corporate income tax, social contributions, personal income tax and other labor related contributions.

In general, VAT registration is mandatory for companies or persons, whose turnover exceeds 50 000 EUR. Different thresholds are applicable for certain categories of goods or for international or intra-Community transactions. Related companies may establish a VAT group by pooling their obligations and rights, while communicating with the Latvian tax authority.

The full list of fields of our expertise in taxation is as follows:

Tax planning and  optimization in Latvia

Tax litigation in Latvia
International cross-borders transactions in Latvia
Value added Tax (VAT) in Latvia
Social Security in Latvia

Corporate income Tax in Latvia
Withholding Taxes in Latvia
Personal Taxation, including filling of Annual Tax returns for expatriates in Latvia
Representation before Tax authorities in Latvia

Appeal of Tax assessments in Latvia

Preparation of declarations in Latvia
Arranging  residence certificates according to double taxation agreements in Latvia
Property tax in Latvia
Payroll taxes in Latvia
VAT representations and registrations in Latvia

Excise tax in Latvia
Packaging tax in Latvia
Natural resource tax in Latvia
State dues in Latvia
Land transfer dues in Latvia

Tax audits in Latvia
Accounting consultancy in Latvia

Value added tax  in Latvia

VAT  in Latvia

VAT registration  in Latvia

VAT registration  in the Baltics

VAT representative in Latvia

Value added tax registration  in Latvia

Value added tax fiscal representative  in Latvia

Value added tax representative  in Latvia

Double taxation treaties  in Latvia

Transfer pricing in Latvia

Holding companies  in Latvia

Dividend taxation  in Latvia

Royalty taxation  in Latvia

Permanent establishment tax  in Latvia

Independent services tax in Latvia

Dependant services tax in Latvia

Interest tax in Latvia

Business profit tax  in Latvia

Income from immovable Property tax  in Latvia

Taxation of income Law in Latvia

Tax on capital  in Latvia

Exchange of tax information  in Latvia

OECD Model tax in Latvia

Should you wish to receive our English speaking tax consultant assistance please feel free to contact us at info@gencs.eu