On 4 July 2017, the Cabinet of Ministers approved Regulations No. 397 "Regulations on the Report of the Group of Multinational Enterprises for Each Country" which foresee taxpayers to submit reports of multinational companies to the State Revenue Service (SRS) as per the Law "On Taxes and Duties". We informed about it previously in May this year read more.
If an entity of multinational enterprise group (hereinafter the entity) is neither a parent company nor a ‘’substitute parent company’’[1] or a unit that is required to prepare a report, it should notify the SRS that the entity is not required to submit a report and provide a name of reporting entity, registration number, address and country of registration (country of residence). The information for the first reporting year which began on 1 January 2016 has to be notified to the SRS by 31 August 2017. The reporting period for this period is 31 December 2017.
The reporting obligation remains with a parent company of an multinational enterprise group registered in Latvia or entity registered in Latvia if:
- its parent company is not obliged to submit a
report in its country of residence
- there is no agreement with the competent authority on reporting with the country where the entity of parent company is located
- there is no exchange of information with country of residence selected by the parent company for tax matters which has been notified to the entity in Latvia by the SRS[2].
The report templates are available in the annexes of Regulation No.
397.
[1] "Substitute parent company" is an entity of a multinational group companies appointed by the group as the sole substitute parent company for the entity to report on behalf of its multinational group companies.
[2] In case the multinational group has a consolidated turnover exceeding 750 MEUR.
