If the company makes payments to non-residents – legal persons, and where such payments are subject to withholding (corporate income) tax at source, the company is obliged to keep record on made such payments and withheld tax amounts and
“Corporate income tax report on non-resident’s income and tax paid in the Republic of Latvia” (CIT report) has to be submitted to SRS by the date of 15th of the following month after made payment.
The mentioned CIT report has to be submitted also in case if there are applied provisions of a double tax treaty and according to it the tax has been withheld at reduced rate.
CIT report shall be submitted also in the situation when the company has not withheld the tax on made payment to non-resident at source, but it had to.
If the double tax treaty provides tax relief on respective kind of payment and tax is not withheld according to the received residence certificate, then the mentioned CIT report does not have to be submitted to the SRS.
Drawing a parallel with amendments to the Cabinet of Ministers 30.04.2001. Regulations No.178, which entered into force on 1 May 2015, in order to apply tax relief according to the double tax treaty and not to withhold a tax at source, a company must submit the residence certificate to the SRS at the latest by the filing deadline of annual CIT return. It means that companies making payments to non-residents may apply tax relief according to the double tax relief, although they have no residence certificate approved by the SRS at source (please see the news of 13th of May).
Whereas, in relation to the CIT report – if there is not available a residence certificate approved by the SRS at the time of made payment, a company is obliged to submit the CIT report even there is the intention to receive and submit the residence certificate to the SRS by the filing deadline of annual CIT return.
 Article 24(2) of the Corporate Income Tax Act
 Paragraph 136 of the Cabinet Regulation No. 556, Application of Provisions of the Corporate Income Tax Act
 Appendix 18 of the Cabinet Regulation No. 556
 Cabinet Regulation No. 178 “Procedures for Application of Tax Relief Determined in International Agreements for Prevention of Double Taxation and Tax Evasion”
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