As of 1 January 2017, amendments in relation to information to be provided to the State Revenue Service (SRS) on payments made to the non-residents have entered into force.
According to the European Commission's requirements for a common exchange of information between countries that concluded a double tax treaty, the SRS has introduced automatic information exchange system. To ensure that the SRS has all information to be automatically exchanged with the foreign tax administrations, the amendments to the Cabinet Regulations No 556 foresee that as of 1 January 2017, taxpayers must provide information concerning all payments to non-residents to the SRS regardless of whether or not it is a subject to CIT (withholding tax) application in Latvia.
The said information about non-residents’ income (other than a natural person) in Latvia must be submitted in a report (Annex 18 of the Regulations No 556). The submission deadlines of respective report are as follows:
If the payment is made to the non-resident, which is subject to CIT, but an exemption is granted in accordance with the double tax treaty and the payer has a valid resident certificate approved by the SRS, the submission of payment information will be required along with the CIT annual return at the end of the tax year if respective income exceeds 5000 euro.
 04.07.2006. Regulation of the Cabinet of Ministers No 556 "Regulation for application the Law "On Corporate Income Tax".
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