1. Establishment of an Internal Whistleblowing System

Companies with more than 50 employees are required to implement an internal whistleblowing system that ensures a secure and confidential reporting mechanism. This system must provide employees with a safe and confidential channel to report violations and ensure their protection. The internal system can be managed internally or outsourced to a third party. Additionally, companies operating in specific sectors, such as financial services or those involved in the prevention of money laundering and terrorism financing, are obligated to establish such systems regardless of their size.

This system should allow employees to report misconduct safely and confidentially. Key components of the system include:

• Secure and accessible reporting channels: Companies must provide a dedicated and secure mechanism for employees, contractors, and other associated individuals to submit reports. This may include an email address, online platform, hotline, or designated internal contact person.
• Anonymity and confidentiality: Companies must ensure that the identity of whistleblowers remains protected, and that information provided is handled with strict confidentiality. Whistleblower’s identity should be protected from the moment of receiving the report and continue after the case is closed.
• Clear reporting procedures: Employees should receive clear guidance on how to report misconduct and what types of violations fall under whistleblower protection. This can be reinforced through training, periodic reminders, and open discussions in company meetings.

2. Informing Employees

Companies must inform employees and relevant stakeholders about the internal whistleblowing system upon commencement of employment or a related professional relationship. This information should be easily accessible to ensure that all employees understand how to report violations. Key measures include:

• Providing clear and accessible information about the internal whistleblowing system.
• Disseminating this information through internal communication channels such as intranet portals, employee handbooks, or posters in common areas.
• Conducting training and awareness programs to educate employees about reporting procedures, available protections, and fostering a culture where ethical concerns can be raised without fear of retaliation.

3. Protection Against Retaliation

Companies must ensure that whistleblowers, their relatives, or related persons are protected from any form of retaliation due to their reporting activities. Prohibited actions include (but are not limited to) dismissal, demotion, denial of promotion or training opportunities, changes in duties or remuneration, and any form of harassment or discrimination.

To ensure compliance, companies must implement measures to prevent retaliation and establish procedures for handling complaints of victimization. Failure to uphold these protections can result in administrative penalties.

4. Compliance with Reporting and Documentation Requirements

Companies must maintain accurate records of whistleblowing reports, investigations, and outcomes while ensuring compliance with data protection rules such as the General Data Protection Regulation (GDPR) and the confidentiality of whistleblowers’ identities. Personal data of the whistleblower should be pseudonymized immediately after the report is recognized as a whistleblower’s report. Access to this information should be restricted to individuals responsible for handling the report, and unauthorized disclosure may result in criminal liability. In some cases, companies may be required to provide information on their whistleblowing procedures to relevant authorities.

5. Timely Acknowledgment and Feedback

Upon receiving a whistleblower’s report, companies are required to follow specific deadlines and procedures:

• Acknowledgment of receipt: The company must confirm the receipt of a whistleblower’s report within seven days of submission.
• Initial evaluation: Within seven days, the company must assess whether the report meets whistleblower criteria. If it qualifies, the reporting individual is granted legal protection under the Whistleblowing Law.
• Investigation process: A structured and impartial investigation should be conducted by the designated person or team within the company. Throughout the process, the whistleblower’s identity must remain protected.
• Providing feedback: The company must inform the whistleblower of the outcome of the investigation within two months after acknowledging the report. If the investigation takes longer, the whistleblower must be informed of the reasons for the delay. After completing the investigation, the company must inform the whistleblower about the findings, decisions made, and any measures taken.

6. Administrative Liability for Non-Compliance

Failure to comply with the Whistleblowing Law may result in administrative fines. Obstructing whistleblowing activities, including hindering report submission or investigation, can lead to fines ranging from EUR 35 to EUR 7000 for legal entities. For causing adverse effects to a whistleblower, their relatives or related persons, fines can range from EUR 70 to EUR 14,000 for legal entities along with potential legal consequences and compensation claims.

Conclusion

Latvia’s Whistleblowing Law mandates companies to establish a secure and transparent framework for reporting misconduct. Compliance with these obligations not only ensures legal adherence but also fosters a culture of integrity and accountability within the company. Ensuring employees feel safe to report misconduct is essential for preventing corruption, financial crimes, and other violations that could harm both businesses and the public interest.

Employers should take proactive steps to implement effective whistleblowing systems, educate their workforce, and promote an ethical workplace environment. A well-functioning whistleblowing system enhances corporate reputation, mitigates legal risks, and contributes to long-term operational integrity.

The post Whistleblowing in Latvia: What Are the Obligations for Companies? appeared first on Leinonen Latvia.

Pressure On Employers on Rising Workforce Costs

During the last years in Latvia there has been a continuous pressure on the employers as of the remuneration of employees. Namely, the numbers of available workforce are decreasing for several reasons, and this pushes the employers to compete for the best part of employees.

Therefore, salaries are increasing rapidly, different kind of new bonus schemes and benefits are invented to keep the employees.

The problem here is that most of the significant bonuses (money payments for performance etc.) and benefits (company car etc.) involve tax consequences for the employer – in a form of personal income tax (PIT), social security contributions, company car tax, and finally even a company income tax (CIT). This makes the pressure on the employers even harder, especially, if we realize that these benefits and bonuses do not create lasting ties between employees and the company.

There has always been a possibility for the owners of the company to confer some company shares to the best employees or to allow them to buy them. However, these options involve high costs, in the first case for the employer, because from the value of such shares PIT and social contributions shall be paid, in the second case – for the employee, because the value of such shares can be so high that they cannot afford to acquire relevant amount of shares to have any economic rationale behind that (to receive dividends or to gain income from the increase in value). Furthermore, ordinary shares allow the holder not only receive dividends but also to participate in the administration of the company and in case of a very fragmented ownership structure the management of the company can be negatively affected.

Employee Stocks

It has been already a long time (in the current form since July 2017) possibility for joint-stock companies (corporations) to confer employee stocks to its employees, members of the board and supervisory council (or to such persons within one group of companies), but there are also significant limitations involved as of these.

Namely, employee stocks can be issued only by joint-stock companies, and they by law may not be alienated. In case of employment termination or death of a stockholder, the employee stocks are transferred back to the company by law. Articles of association of the company may stipulate provisions, which differ from the foregoing. If employee stocks were granted for a fee, the company shall pay a compensation to the person or the heir respectively in the amount of which must be equal to the sum which the stockholder would acquire by dividing the property of the company in case of liquidation.

As it was already mentioned above, employee stocks may be allocated free of charge or for a fee. If employee stocks are allocated free of charge, the stocks shall be issued on the account of the undistributed profit of the company. The total nominal value of outstanding employee stocks may not exceed 10 per cent of the equity capital of the company.

The company may issue employee stocks of different categories. Employee stocks shall give at least the right to receive dividends and, if the stocks are allocated for a fee, the right to the liquidation quota. The articles of association of a company can stipulate that employee stocks give also the right to vote and other rights a shareholder may have.

Three main issues could cause tax consequences for employee stocks. First, the moment when employee stocks are conferred upon the employees. Since by law the employee stocks are not alienable and at the termination of employment they are to be transferred back to the company, this should not be considered an employee benefit to which PIT and social security contributions have to be applied. That would change, if the stocks are alienable – a person could get not only dividends but also earn on the increase in price of the stock.

The second tax implication is when the dividends are paid out. Distributed profits in Latvia are subject to 20% CIT (however, before applying the rate, the tax base shall be divided by a coefficient of 0,8). If 20% CIT from the profits of the company has been paid, the dividends paid to stockholders – Latvian residents – are exempt from PIT. The situation of non-residents receiving dividends from a Latvian company depends on their domestic tax law and bilateral treaties concluded with Latvia.

The third implication might be when the stocks are transferred back to the company. This is the moment when PIT from a capital gain could be established. If the stocks were conferred upon free of charge, they are also transferred back to the company without compensation, and therefore no capital gain can be established. In case the stocks were conferred upon for a fee, the positive difference between the sum of this fee and the compensation gained is taxable by 20% PIT.* The same applies if the stocks are alienable and the person sells them. The only issue there would be the value of the stocks at the moment of granting if they are granted for free – should one take into account the nominal value or the value that corresponds to the possible liquidation quota at that moment? The latter one should be more favourable since it is closer to the real value of the stock.

However, since the tax implications described above (especially the first one) are not clearly regulated by the law, it is highly advisable to elaborate on the intended scheme of employee stocks and ask for a binding legal opinion from the tax authority as of the tax consequences which would be incurred if the scheme in question would be executed.

Employee Stock Options

There is no definition of employee stock options given by the law, but they can be described as a right to acquire stocks in the future for a price, which was stipulated at the time when these rights were granted. It is important to note that stock options can be issued only by a joint-stock company.

Law defines the circle of persons, to whom stock options can be granted – the company’s employees, members of the board, and supervisory council (or to such persons within one group of companies).

Employee stock options may not be alienated unless the articles of association or regulations for issuing employee stock options provide otherwise.

Employee stock options are granted free of charge. If stocks thereafter are also acquired free of charge by using these employee stock options or for a fee that is lower than the nominal value of the stock at the time of the use of the employee stock option, the company shall issue stocks on account of the undistributed profit of the company or the payment for them shall be made from specially formed reserves.

The company board shall maintain the records of issued stock options in the same way as it is prescribed for convertible debentures. The process of issue is also similar to the one designed for convertible debentures.

As for the tax consequences the general rule of law is that the income gained from the execution of rights stemming from the employee stock options is taxable under the 20% PIT rate.* The income gained from the execution of rights stemming from the employee stock options is tax exempt if the following circumstances simultaneously occur:

• the minimum holding period of employee stock options (the period from the date of granting to the day when the person is entitled to start to execute the options) is not less than 12 months;
• during the minimum holding period of the stock options the employee has an employment relationship with a company that has granted the stock options or with a company that is related to the first company;
• the employer has submitted to the tax authority the set of rules by which the emission of the employee stock options is regulated;
• the options are executed not later than within six months from the day when the employment relationship between the person and the employer (or its related entity) is terminated;
• the company that has granted the employee stock options to the person, or an entity related to it, has not granted the person a loan that has not been repaid until the moment of execution of options (loans granted by credit institutions, national financial development institution and non-credit institutions providing consumer loans are excluded from this provision).

If these provisions are not met, the question arises what would be the tax base to which 20% PIT* would be applied? The person surely would argue that the tax base should be the nominal value of the stocks acquired, while the tax authority would like to stick with the real value of the stocks, which is not so easy to determine without proper due diligence. Another option for the tax authority would be the liquidation quota, which can be calculated from the information available to the public.

Employee (Personnel) Shares

Employee shares are to some extent similar to employee stocks described above. The most significant difference here is that employee shares can be issued by a limited liability company (LLC – SIA in Latvian).

This is a really recent development – the corresponding amendments to the Commercial law entered into force only in January 2021. However, the law regulates these in a very general way – there is quite a room given for one’s discretion.

Namely, now the law allows for a limited liability company to issue shares of different categories. The only limitation is that each category of shares shall differ from other categories by the set of rights stemming from these shares and each category shall have its own name. For instance, a limited liability company can issue three different categories of shares – ordinary shares and employee A and employee B shares, where employee A and employee B shares differ by the amount of dividend they are entitled to – B shares with a coefficient of 0.8, where A shares with a coefficient of 1.

What is important, along the share categories also the exception from the principle of proportionality was introduced – now the profit can be divided not proportionally to each share – that can differ by each category of share. This means that, for instance, 50% of shares can be actually entitled to 75% of the profits, etc.

Tax implications related to employee shares are similar to those of employee stocks. However, since the PIT law does not regulate employee shares at all, tax risks are involved in every step here. The moment when employee stocks are conferred upon employees – if the articles of association of the company say that employee shares can be alienated and they are conferred upon free of charge, this can be considered an employee benefit to which PIT and social security contributions must be applied. On the opposite – if the articles of association of the company say that employee shares cannot be alienated, cannot be subject to inheritance, and after termination of employment they are transferred back to the company, there would be no ground to apply PIT and social security contributions.

The easiest part here is the moment when profits are distributed – to the distributable profits 20% CIT is applied (before applying the rate, the tax base shall be divided by a coefficient of 0,8), and if 20% CIT from the profits of the company has been paid, the dividends paid to stockholders – Latvian residents – are exempt from PIT. The situation of non-residents receiving dividends from a Latvian company depends on their domestic tax law and bilateral treaties concluded with Latvia.

When the employee shares are transferred back to the company or alienated (if allowed by articles of association of a company), it is the moment when the possible capital gain shall be established. The potential tax base would be the difference between the value of the employee shares when they were granted (if conferred upon free of charge) or the cost of the acquisition of employee shares (if they were bought) and the compensation received from the company (if any) or the purchase price received from a third person. Taking into account the many possibilities available and the number of potential different compositions of these possibilities, also the tax consequences might differ accordingly. For instance, if an employee was granted free of charge 100 shares with a total nominal value of 100 EUR, and after 2 years the person terminates the employment, these 100 shares are transferred back to the company (articles of association stipulate so) without compensation, there would be no capital gain from which 20% PIT* should be paid. Another situation would be, if these shares were bought for 100 EUR and after the termination of employment the company would pay a compensation which corresponded to the liquidation quota of EUR 700. In this case the capital gain would be EUR 700 – EUR 100 = EUR 600, from which 20% PIT* shall be paid.

Taking into account the complexity of possible tax issues arising from employee share plans, it is necessary to elaborate the intended scheme of employee shares and request a binding legal opinion from tax authority about the tax consequences that would be incurred if the scheme in question were executed. Otherwise, all the good intentions of the employer could be ruined because of sudden tax implications.

Conclusions

Taking the above into account, it is evident that all three instruments offer employers the opportunity to provide benefits to employees with reduced tax liabilities compared to traditional benefits and bonus schemes. Moreover, these instruments create stronger relationships with employees encouraging them to work for the employer for a significantly longer period than might be expected in the respective business sector.

* Latvian government has announced that PIT rate applicable to capital gains and income from capital will be 25.5% as of 1^st January 2025, and while you are reading this, respective amendments in law might be already adopted by the parliament and published.

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Employment and Contractor relations

Employment relations are characterized by their long-term nature, involving continuous obligations between the employer and the employee. Employment agreements are not meant for one-time tasks but rather for ongoing cooperation, where the employee provides labour, and the employer provides compensation over an extended period of time.

Contractor or service relations are established when there is a need for specific tasks to be fulfilled or services to be provided, for example, producing a particular item or organizing an event. This work is carried out using the contractor’s tools and resources. The contractor agreement focuses on delivering a specific result and receiving a compensation for it rather than ongoing work.

It is crucial for both parties to correctly differentiate between the two types of work relations because each comes with different responsibilities for parties towards each other, and each type allows for specific rules to be applied in the respective agreements. The table below outlines the key difference between rules that apply to employment agreement and contractor agreement.

It is important to note that the distinction between the two types of agreements is made not by the name of it, but by the content – the rules and the obligations that the parties have agreed-upon. This means that an agreement that is for ongoing work, including monthly salary, specific work schedule and social benefits, may establish employment relations, even if an agreement itself is called “Contractor Agreement”.

Overall, employment agreement establishes long-term obligations and a structured work environment, while contractor agreement offers more flexibility, focusing on specific tasks or results. Knowing these differences helps individuals and businesses make informed decisions about their work arrangements.

Contractors – performers of commercial activity

Contractor can be either natural or legal person. If a natural person wants to start commercial activities, they must register at the State Revenue Service as taxpayers – performers of commercial activities. That can be achieved by either obtaining status as self-employed person or as an individual entrepreneur. Each status comes with specific legal obligations and implications, particularly in terms of tax and social insurance requirements.

Self-employed person status can be obtained after registering commercial activity with the State Revenue Service. However, registering economic activity is mandatory if either one of the following criteria is met:

1. activity is regular and systematic – 3 or more transactions per year or 5 or more transactions in 3 years;
2. revenue from transaction exceed 14,229 euros per year;
3. the economic nature of the activity or the number of things in a person’s possession indicates a systematic activity with the aim of obtaining a pay.

Individual entrepreneur is a natural person who is performing commercial activities and that is registered has registered their activity in the commercial register. This registration is mandatory if either one of the following criteria is met:

1. person’s annual turnover from commercial activities exceeds 284 600 euros;
2. person’s commercial activities align with those of a commercial agent or a real estate agent;
3. the commercial activities meet the following combined criteria:
   • annual turnover is exceeding 28 500 euros, and
   • more than five employees are employed simultaneously.

The distinction between a self-employed person and an individual entrepreneur hinges largely on the scale and nature of the economic activity. When a self-employed person’s business grows to the point where the annual turnover surpasses 284 600 euros, or they employ at least five employees with an annual turnover above 28 500 euros, they are legally required to register as an individual entrepreneur. This registration comes with additional legal responsibilities and aligns the individual’s business activities with the standards set for more significant commercial operations.

The post Employment or Contractor Agreement? Understanding Different Work Arrangements appeared first on Leinonen Latvia.

Infrastructure is a strong business advantage but Latvia is also known for its skilled and multilingual labour force, invaluable natural resources, stable economic situation and great business potential to foreign and domestic companies. Latvia has the capacity to provide a solid business environment for companies of different sizes. This is demonstrated by the presence of wide range of well known international companies in Latvia.

Business operations in Latvia benefit from EU membership, which enables the free movement of goods, services, capital and labour. Latvia is also part of the euro zone.

COMPANY ESTABLISHMENT

The commercial activities are mainly regulated by the Latvian Commercial law. The three most common forms of business presence when entering Latvian market are limited liability company, branch of foreign company and permanent establishment. All of them have advantages and disadvantages in reporting, audit, taxation etc. We recommend brief consultation with us before deciding which form of presence is to be chosen.

There are no restrictions regarding citizenship of business entity representatives.

Registration with the state registry (Commercial Registry of Republic of Latvia for a limited liability company and branch of a foreign company, for permanent establishment it can be also State Revenue Service – Latvian national tax authority) is mandatory for doing business in Latvia. The company is considered a legal entity only after registration at the Commercial Registry.

TAXATION

As from 2018 in Latvia taxation of corporate profits is postponed until those profits are distributed as dividends or deemed to be distributed. Corporate income tax at the rate of 20% will only have to be paid from the profit share which will be distributed or disbursed as dividends or used for purposes not directly related to business. It should be noted that tax base should be divided by 0,8 and then 20% corporate income tax applied. Thereby, the effective tax rate will actually be 25%.

Personal income tax rates are: 20% for annual income not exceeding EUR 20,004; 23% for annual income from EUR 20,005 to EUR 55,000; 31.4% for annual income exceeding EUR 55,000. The individual income tax rate on income from capital and capital gains is 20%.

Standard VAT rate is 21%, reduced VAT rate for 12% is applied to food products for infants, pharmaceutical products, medical products for disabled persons, domestic passenger transport, books (excluding e-books), newspaper and periodicals, hotel accommodation and district heating.

EMPLOYMENT

The regulation of employment in Latvia is governed by the Labor Code and the employment legislation is harmonized with EU-legislation, although some details are slightly more employee-protective. At the moment unemployment rate is very low and Latvia suffers from deficit of high qualified workers.

Expats are liable to pay resident taxes in Latvia only if they stay in the country for at least 183 days or longer during any 12-month period beginning or ending in a tax year. Self-employed people may regulate their own tax regime, including social contributions, and they are responsible for their own safety at work. They do not have social guaranties in case of accidents at work.

If an employer is reducing its number of employees or in case the business (legal person or partnership) is being liquidated, an employer has to give a notice of termination of an employment contract to the employee one month before, unless the collective agreement or the employment contract specifies a longer time period.

BEING AN EXPAT

As Latvia is an EU-member state the moving and employment for EU-citizens is free. However, a residence permit is necessary if the foreign national would like to reside in Latvia for a period of time exceeding 90 days within half a year counting from the first day of entrance. For non-EU citizens Latvia is one of the easiest countries to get work- and residence permits.

Especially in Riga area there are plenty of apartments available both furnished and non-furnished. Price level is very affordable comparing to other European capitals and public transportation is good. We highly recommend contacting a real estate agent for finding nice area to live in.

INTERESTING FACTS ABOUT LATVIA

• Latvia has one of the fastest internet in the world.
• Latvia is considered to be the most start-up friendly country in the world.
• Latvia is #2 in OECD’s International Tax Competitiveness Ranking.
• Latvian residents are twice as active on social sites compared to the world average.
• 96% of inhabitants can speak at least two languages.
• Latvia is one of the most environmentally friendly countries in the world, taking 2nd place according to the Environmental Protection Index. More than 50% of Latvia’s territory is covered by forests.
• The Latvian language is one of the oldest languages ​​in Europe, which originated and developed over the last 5,000 years, which is an ancient Indo-European language.
• In Latvia, 99.9 percent of the population can read, which is the highest rate in the world.
• With over 800 Art Nouveau buildings, Riga has one of the world’s greatest galleries of this joyful style.

Contact us today if you need more information on starting a business in Latvia.

The post BUSINESS IN LATVIA appeared first on Leinonen Latvia.

The Importance of an Accounting Policy

The Law mandates that accounting must be conducted in a way that allows a third party, who is competent in these matters, to obtain a truthful and clear overview of the company’s liabilities, assets, and financial position at a specific date. It should also provide insight into the company’s operational results and cash flow over a particular period. Additionally, the Law requires that the beginning of each economic transaction can be determined and its course traced accurately.

According to the Law, accounting organization documents comprise an aggregate of documents issued by the head of a company. These documents define the procedures for maintaining registers, preparing and handling source documents, performing inventory, preparing annual and other financial statements, and storing accounting documents. Among these, the policy is a crucial document, along with the chart of accounts and other necessary records for the company’s processes.

The Legal Requirement for an Accounting Policy

Section 62 of the Cabinet of Ministers’ Regulation No. 877 “Accounting Regulations,” dated December 21, 2021 (hereinafter referred to as the “Regulation”), specifies that the policy must outline the principles, methods, and rules for accounting, valuation, and disclosure of relevant economic transactions, facts, events, and financial statement items.

Based on these legal provisions, it is clear that an accounting policy is not just important but mandatory. It is a foundational document in accounting organization, dictating how the company’s balance sheet and profit and loss items are recognized in the saved records. Without such a document, a competent third party would be unable to obtain a truthful and clear overview of the company’s financial position, which is a fundamental requirement for proper accounting.

Ensuring Compliance with Legal Requirements

To avoid potential issues, it is strongly recommended that your policy is prepared in accordance with legal requirements. The guidelines for preparing accounting organization documents are detailed in Chapter 8 of the Regulation.

It is essential that the policy contains up-to-date information on the accounting and valuation principles and methods currently applied. Additionally, the policy should reference the relevant laws and regulations in force.

Another crucial aspect to note is the requirement in Section 61 of the Regulation that accounting organization documents must be prepared in Latvian. This is especially important for company groups with a group policy. Given the Regulation’s requirements, it is necessary to ensure that the policy is translated into Latvian and that its contents comply with the legislation of the Republic of Latvia.

Consistency in Annual Statements

The Law on Annual Statements and Consolidated Annual Statements also highlights that the policy used in the preparation of the annual statement must be consistent with the previous financial year. This consistency is vital for ensuring that the data presented in the annual statement are comparable with the prior year. If there is a change in policy, it should be explained in the annex to the annual statement. If necessary, the previous year’s results should be adjusted or reclassified.

Making Changes to the Accounting Policy

Chapter 3.2 of the Cabinet of Ministers’ Regulation No. 775 “Regulation on Application of the Law on Annual Statements and Consolidated Annual Statements,” dated December 22, 2015, outlines the requirements for making changes to the accounting policy. A company may only change its accounting policy under the following circumstances:

• The regulatory framework has changed.
• The application of the previous accounting policy no longer meets the legal requirement of providing a truthful and clear overview due to changes in circumstances.
• The change in accounting policy provides more reliable and relevant information about the impact of economic transactions, facts, events, or circumstances on the company’s financial position, profit or loss statement, and cash flow.

Given these considerations, it is crucial to approach the development of an accounting policy with diligence. It must not only comply with legal requirements but also ensure that a competent third party can gain a truthful and clear understanding of the company’s business activities. This can only be achieved by selecting reliable and appropriate accounting and valuation principles and methods. Furthermore, the company’s management should be prepared to justify any changes made to the policy.

For micro or small companies, the “Handbook on Accounting Organization Documents,” issued by the Association of Accountants of the Republic of Latvia, can serve as a useful guideline for preparing an policy. However, it is important to remember that the policy must be tailored to the specific activities of each company; there is no universal template.

If you are unsure about your ability to prepare an policy on your own, it is advisable to seek professional assistance. This can help you avoid unnecessary difficulties and allow the company’s management to focus more on business development.

The post Is it mandatory to have an accounting policy? appeared first on Leinonen Latvia.

Please share a bit about your career journey, from your time in the banking sector to becoming the country manager for Lithuania, and now the Baltics Manager. 

I was always interested in business, therefore I decided to study business administration and management. Disregarding smaller that I had during my studies, my career started when I joined Nordea, a major bank in the region, as a project manager, where I worked on internal projects and learned about the inner workings of large organizations. I also spent some time in Copenhagen, developing internal IT systems for Nordea. 

After returning to Lithuania, I joined Swedbank and worked with business clients on digital solutions, eventually becoming a department head managing a team across the Baltics. My team focused on delivering digital solutions like Swedbank’s Internet bank and the banking app. 

Following my tenure at Swedbank, I became the CEO of a local bank. During this period, I started studying for a master’s degree in management at ISM (University of Management and Economics) where I met managers from different industries, which broadened my perspective about business in general. 

I was then approached by Leinonen and was impressed by the values and vision shared by Seppo and Petteri. Their commitment to employee well-being and strong business ethics convinced me to join the company.  

How is it to work as a Lithuanian, who is used to a fast-paced work style, with people from the Nordics? 

It’s been quite an experience. I had already gained some experience with the Scandinavian work culture during my time at Nordea, which in itself is a company made of a merger of about 250 banks. Even while physically working in Lithuania, I had my team based in the Baltics and the Nordics. 

There are differences in work styles, of course. Lithuanians tend to be rather strict, aiming to complete tasks quickly and at a high level. In contrast, the Nordic approach is generally more relaxed and analytical, taking time to consider all aspects before making decisions. This can sometimes be a struggle for someone used to a faster pace. However, there are benefits to both methods. The Lithuanian style ensures efficiency and quick results, while the Nordic style promotes thoroughness and well-thought-out decisions. 

Finding a balance between these approaches is key. While it can be challenging, it also leads to comprehensive and well-executed outcomes. However, if you are too slow, it can be frustrating even for a Nordic person. Overall, working with people from the Nordics has been a valuable learning experience, and I’ve come to appreciate the strengths of both work cultures. 

You joined Leinonen in April last year and became the Baltics Manager in less than a year. How did this happen, and how would you describe the transition from being the Country Manager for Lithuania to managing the whole Baltics? 

It was a combination of good timing and organizational readiness. When I joined Leinonen in April, the company was ready to take the next step in its development. I was fortunate to be in a position to help with that transition. The management decided to entrust me with the role of Baltics Manager, and I’m very grateful for that. 

My experience at Swedbank, where I led a Baltic team, was valuable. I had previously combined three local units into one Baltic team, creating common processes, structures, and ways of working. This experience was directly applicable to my new role at Leinonen, where I’m now building something similar on a larger scale. 

Having already led Baltic teams, I knew what to expect and how to communicate effectively across different countries. This familiarity helped me greatly in my transition. 

What do you think is the big advantage for clients now that the Baltic countries are unified under one structure at Leinonen? 

To give some examples, many companies we work with are becoming regional or are already operating regionally. They are looking for efficiencies, the ability to leverage a larger organization for better expertise and investments, and more streamlined processes. 

For instance, when we want to sign an agreement with a mobile network operator, dealing with three separate countries can be a lengthy process. Ideally, we want one point of contact who can provide services across all three Baltic countries, offering us one contract instead of three. This unified approach saves time and simplifies operations. 

This unification is crucial because our clients are also moving in this direction. They prefer working with a single company across multiple countries. For example, a client expanding from Latvia to Lithuania wants to work with the same company in both countries. If we can’t offer that, they’ll look for someone who can. 

Ultimately, everything we do is for the client. Our internal needs are secondary, and we must follow our clients’ needs to provide the best service. 

It’s been about four months since the change. Have you seen any positive impact, especially from the client’s perspective? 

I think the biggest positive change is yet to come. We’re still in the early stages of harmonizing our processes and understanding the intricacies of each country. This change also led to some managerial shifts, which created some initial instability. However, the clients we’ve introduced to this new way of working have given us positive feedback, especially those who were already our clients in other countries. They appreciate the shorter and more efficient communication lines, which meet their expectations for better service. 

What were the challenges regarding employees, and how did employees adjust to the new structure, especially since many leading positions went to Lithuanians? 

Lithuania is the largest of the three countries, both in revenue and personnel. It just happened that we had the strongest people (who are Lithuanian) for some of the key positions in the new org. structure. This fact of course does not mean that Lithuanians are better managers than Latvians or Estonians. Not at all. As an organization we promote people to higher positions based on the value that they bring to the company.   

Different work cultures are a challenge. Lithuania tends to work faster, while Estonia has a more methodical, Nordic approach. We respect each country’s specifics and try to ensure that our employees are not overly stressed. The key is balancing differences while working towards common goals and high standards for our clients. 

As a leader, how do you ensure your employees feel well-supported while maintaining the necessary authority and respect? 

Managing a company is a complex task, which requires expertise in many fields. What I try to do is to create a team of top professionals and build circumstances for them to do what they do best.  
I feel that in the Baltic management team we have created a good and welcoming atmosphere where members feel that they can speak openly, get their point across freely, and steer the conversation in the direction that they wish. What matters most is not who proposed the decision, but whether the decision that we made is the right one. This is important, because those decisions influence how we as an organization perform, how our employees feel at work and how our clients perceive our services.  

Speaking about authority, I think that in the Baltics (especially in Lithuania and Latvia) it comes naturally with the manager’s position even before one gets to know the person. Managers often seem distant, strict, and even intimidating. I think that this perception is changing. And one of the reasons behind it is that there are many new young managers coming into companies with international experience, where this old-school management by orders is a thing of the past. 

Attaining authority based on merit (in other words, based on what you have accomplished) is of course much more difficult. In the Baltics we have a brilliant management team of energetic professionals, who strive to be excellent at what they do. I have no doubt that even after this short period of running the Baltic organization they have proven themselves to the whole organization to be the leaders that can take Leinonen to the next level. 

You always have positions with a lot of responsibility, especially now in Leinonen. Do you ever get tired of it, or do you enjoy it? How do you maintain a good work-life balance, and what kind of activities do you enjoy in your free time? 

I do enjoy it. Of course, there are times when I get tired, but I generally thrive on the responsibility. What I do is I try to make sure to draw a line between work and personal life. I rarely work from home; I usually leave my laptop at the office and focus on home activities like walking my dog, reading books, and doing sports. For weekends, I enjoy traveling outside of the city with my wife. I think it’s important to have interests outside of work to keep a healthy balance.  

You have achieved a lot in your career and hold a high position at Leinonen. What advice would you give to those who feel they are not successful yet?  

It might sound cliché, but being curious and trying new things is crucial. When I am selecting someone for my team, I want a person who is active, knowledgeable, eager to learn, and has a drive to improve. For example, if a question is posed to the team and no one knows the answer, it’s great when there’s someone that takes the initiative to find out and comes back with the answer. This kind of curiosity and proactive attitude is invaluable. It builds trust, and you start relying on this person for more tasks and responsibilities. So, my advice is to stay curious, be ready to take on more, and don’t be afraid to face challenges. Always be open and active in your work. 

Changing the structure inside a company is difficult, but with the right team, everything is possible. Povilas Sadaunykas’ role is one of the key elements in this, and it was interesting to hear him share the benefits of unifying the Baltic countries under one structure at Leinonen, highlighting improved efficiency and client satisfaction. He also reflects on the challenges faced during the transition and emphasizes the importance of curiosity, proactive learning, and balancing authority with approachability to become a successful leader. We wish Povilas continued success in his journey and look forward to seeing the positive impact he will undoubtedly continue to make. 

The post Navigating Leadership in the Baltics: Povilas Sadaunykas’ Journey  appeared first on Leinonen Latvia.

A Brief Overview of VAT Rates in Latvia

The standard VAT rate in Latvia is 21%, but reduced VAT rates of 0%, 5% and 12% are applicable to certain products and services:

• 0% VAT rate is applied to things like exports, ship and aircraft supplies, and supplies of non-community goods in customs warehouses and free zones. It is important to note that 0% VAT is different from being VAT exempt.
• 5% VAT rate is applied to printed publications like books and magazines.
• 12% VAT rate is applied to things like medicines and medical devices, special food for infants, wood and heat supplies for household consumption, and fresh fruits and vegetables.

A comprehensive list of goods and services subject to each VAT rate can be found in Latvia’s VAT law.

Common VAT Mistakes in Latvia

Navigating VAT rules can be daunting, especially for foreign-owned companies with little experience in Latvian VAT regulations.

Here are 7 mistakes we frequently encounter as tax experts:

1. Incorrect deductions. Businesses or individuals sometimes fully deduct input tax for costs where there are limits imposed on this (e.g., business lunches, event organization and company cars).
2. Incorrect prorate calculation. This mistake is often made when a company deals with both VAT taxable and VAT non-taxable transactions.
3. Applying the wrong VAT rate. For example, applying a 0% or 5% VAT rate to a product or service subject to the standard 21% VAT rate.
4. Not reporting VAT promptly. Doing VAT calculations at the wrong time can lead to late reporting that results in penalties.
5. Incorrectly applying tax to specific VAT regimes. For example, businesses may apply a reverse charge in cases where this is not appropriate.
6. VAT exemption errors. Understandably, many companies mistake 0% VAT for VAT exemption. However, products and services subject to 0% VAT are reported and taxed differently to those that are VAT exempt. VAT on exempt goods and services should be prorate calculated, as there is no VAT deductible. On the flipside, input tax is deductible on goods and services subject to the 0% VAT rate (e.g. exports). Some financial services are also exempt from VAT in Latvia, but the VAT law does not clearly specify which. This can sometimes lead to incorrect application of VAT exemption.
7. Documentation errors. These errors are common and often include things like incorrect reporting periods, and not providing the right source documents to justify applying a reduced VAT rate (e.g., 0%). Without adequate supplementary documentation, the tax authorities may challenge a company’s VAT deduction rights.²

What are the Penalties for VAT Mistakes in Latvia?

For Incorrect Filing: Incorrect filing can lead to errors in tax calculations and ultimately non-declared VAT. The penalty for this is a fine of up to 30% of the unpaid amount, plus interest of 0.05% of the unpaid tax per day.

For Late Filing: The State Revenue Service (SRS) can impose a penalty of up to €140 for late submission of a VAT return. If the VAT return has not been filed within 30 days after the deadline, the SRS may also exclude the taxpayer from the VAT payer register.

VAT Mistakes in Latvia: A Frequently Encountered Case Study Example

A company was finding it hard to figure out whether their goods were subject to VAT at a standard or reduced rate, and ultimately opted to incorrectly apply the reduced VAT rate. A situation like this could lead to SRS penalties.

With the support of accountants who have knowledge of VAT rules in Latvia, situations like this can be avoided.

How do Changes to VAT Regulations Affect Businesses?

Changes to laws surrounding VAT in Latvia can easily lead to mistakes being made by businesses. For example, from 1 January 2024 to 31 December 2024, supplies of fresh fruit, berries and vegetables are subject to the reduced 12% VAT rate. As these goods were previously subject to the 5% VAT rate, this could lead to the incorrect rate being applied and reported by businesses. And as we have already discussed, incorrect reporting can result in late payments and, ultimately, fines and other penalties.

How to Avoid Making VAT Mistakes in Latvia

When managing VAT in Latvia, seeking training and resources from tax advisors from the outset is highly recommended. This is especially advisable if your business is complex, or if you are dealing with new types of business transactions. If your company has received penalties or interest from the tax authority due to previous VAT mistakes, finding expert support will be particularly beneficial.

If your company deals with cross-border business, VAT regulations and rates can be confusing. Leinonen have been offering expert consultation and training for foreign-owned businesses in Latvia for 27 years. During this time, our tax, payroll and accounting experts have supported more than 270 clients. Our 50+ employees with local and industry-specific expertise reliably manage 70+ payrolls each month.

Contact us today to find out how we can help your foreign-owned company avoid common VAT mistakes in Latvia.

The post 7 Common VAT Mistakes in Latvia (and how to Avoid Them) appeared first on Leinonen Latvia.

When employing in Latvia, having sound knowledge of local employment laws is paramount. This blog post covers all the basics you need to know about public holidays in Latvia as an employer.

What are Employees Legally Entitled to During Public Holidays in Latvia?

Generally, employees in Latvia are not obliged to work on official public holidays. The only exception to this rule is if they work in an industry where continuity of work is necessary. If this is the case, employees are entitled to additional compensation of no less than 100% of their hourly or daily wage, or an extra paid holiday day. The employer must also notify the employee in advance if they are required to work on a public holiday.

If there is a constant need to work on public holidays, applicants must be informed of this condition when they apply for a job. This can then be written into a company’s internal regulatory act, and the type of compensation for work on these holidays can be agreed upon from the outset to be applicable in all cases.

The Labour Law does not specify what it means for continuous work to be necessary. However, employees can dispute if they do not think their employer’s reason for asking them to work a public holiday is valid. In this case, it is up to the employer to prove that they have legal grounds to require work on a public holiday (a legitimate need for continuity of work).

Can Employers Offer Additional Benefits for Work on Public Holidays?

Some employers choose to offer better terms than the minimum legal requirements. For example, an employer may choose to shorten the day prior to a holiday more than the minimum of one hour, set additional days off around public holidays, or offer higher compensation for working on public holidays.

List of Public Holidays in Latvia

• 1^st January: New Year’s Day
• 29^th March (in 2024 – date varies): Good Friday
• 31^st March (in 2024 – date varies): First easter day
• 1^st April (in 2024 – date varies): Second easter day
• 1^st May: Labour Day (Day of the Convocation of the Constituent Assembly of the Republic of Latvia)
• 4^th May: Day of the Restoration of Independence of the Republic of Latvia
• 12^th May: Mother’s Day
• 19^th May (in 2024 – date varies): Pentecost
• 23^rd June: Līgo Day
• 24^th June: Jāņi Day (summer solstice)
• 18^th November: Day of the Proclamation of the Republic of Latvia
• 24^th to 26^th December: Christmas
• 31^st December: New Year’s Eve

Organising the days Around Public Holidays in Latvia (With Examples)

• If a holiday is preceded by a working day, this working day must be shortened by at least one hour.

Example: In 2024, Labour Day was on a Wednesday, so Tuesday’s workday was shortened. Conversely, Līgo falls on a Sunday, so Friday’s workday does not need to be shortened.

• If one working day falls between a public holiday and weekly rest time, employers can move this working day to another Saturday in the month to extend the holiday period. Working days transferred in this way are not considered overtime work.

Example: If a company operates from Monday to Friday and a public holiday falls on a Thursday, the employer may designate the Friday as another day off and make the following Saturday a working day instead.

Are any Public Holidays in Latvia Subject to Unique Regulations?

Yes – the Day of the Restoration of Independence of the Republic of Latvia (4^th May) and the Day of the Proclamation of the Republic of Latvia (18^th November) are subject to a unique regulation. If either of these holidays fall on a Saturday or Sunday, the following working day is designated as a public holiday.

Manage Payroll as a Foreign-owned Business in Latvia With Leinonen

Already trusted by 270 clients, Leinonen Latvia has been in operation for over a quarter of a century. As accounting and tax experts specialising in cross-border payroll, we stay updated on the latest Latvian employment regulations, helping foreign-owned businesses operate smoothly and lawfully in a new country. Get in touch to find out how we can support you as you establish your foreign-owned business in Latvia

The post What do you Need to Know About Public Holidays in Latvia as a Foreign-Owned Business? appeared first on Leinonen Latvia.

A dividend is an instrument of how the company distributes the profits to its shareholders. For a shareholder (business owner) the dividends are the ultimate right towards the company. Therefore, only the shareholder is entitled to decide on the payment of dividends.   

Normally, dividends shall be paid out to a shareholder in proportion to the sum of the nominal values of the shares owned by him or her (10 % of the shares are entitled to 10% of the distributable profits). However, the articles of association of a company can provide for different provisions (for instance, applying different coefficients to different classes of shares etc.).

The process of decision-making as of payment of dividends is as follows. The board of the company convenes the ordinary shareholder’s meeting proposing to approve the annual statement of the company and to decide on profit distribution. The board of the company shall ensure that the shareholders have access to the proposal. Commercial Law lists the items which shall be included in the proposal. After the shareholder’s meeting is held and the minutes of the shareholder’s meeting are signed, there is a legal ground for payment of dividends to the shareholders of the company.

SPECIAL FEATURES

In the event the company has undistributed profits, shareholders have an option, in accordance with the procedures specified in the Commercial Law, to request the board of the company to convene a meeting of shareholders in order to decide on the use of the undistributed profit.

As already mentioned above, the rights of the shareholders to receive dividends from the company can be affected by the articles of association of the company, where several classes of shares are determined, and these classes of shares differ by the amount of dividends to paid for such shares (for instance, class A shares are entitled to dividends with a coefficient of 1.2, class B shares – 1.0, but class C shares – 0.8 etc.).

Joint-Stock companies in accordance with the Commercial Law have an option to issue special type of shares (stocks) – preferred stocks. Preferred stocks can give special rights to a stockholder in relation to the receipt of dividends (for instance, guaranteed certain sum of money as dividends each year).

Commercial Law also provides for a possibility to pay out extraordinary dividends. Such an option shall be stipulated in the articles of association of the company – that dividends may be determined and calculated also from the profit acquired during the period after the end of the previous reporting year.

A prerequisite for the payment of extraordinary dividends is that the board of the company shall draw up and submit to the meeting of shareholders a report on economic activity of the company for the period for which extraordinary dividends are determined and a proposal for the part of the profit to be paid out in extraordinary dividends. The meeting of shareholders cannot determine a greater part of profit to be paid out in extraordinary dividends than that determined in the proposal. The report on the economic activity of the company shall comply with the requirements on drawing up the annual statement, and the board of the company shall ensure that shareholders have access to the report and the proposal.

The board shall not convene a meeting of shareholders if the company has no profit in accordance with the report on economic activity which has been drawn up for the extraordinary dividend payment period. There are other preconditions which shall be met on the day of taking the decision of the meeting of shareholders in order to pay out the extraordinary dividends:

1. the company has no tax debts;
2. the company has no tax payments deferred or divided in periods, and the advance tax payments to be made by the company have not been reduced.

There are also certain time limits set by Commercial Law for adopting a decision on payment of extraordinary dividends. Namely, the meeting of shareholders shall take the decision to determine extraordinary dividends:

1. not earlier than three months after the previous decision of the meeting of shareholders to determine dividends has been taken;
2. not later than three months after the end of the reporting period on which the report on economic activity of the company has been drawn up.

This means that, if there is a wish to pay out extraordinary dividends for first three months (first quarter) of the financial year (January – March) and the report has been made on the 10^th of April, shareholder’s meeting shall adopt the decision on the payment of extraordinary dividends for the first quarter not later than on 10^th July.

Payment of extraordinary dividends also put some additional liability on the board of the company, since the board in the meeting of shareholders shall certify that:

1. the financial situation of the company has not significantly deteriorated until the day of the meeting of shareholders;
2. paying out of extraordinary dividends does not pose a risk to the fulfilment of the commitments of the company in the remaining months of the reporting year.

GENERAL RESTRICTIONS

Dividends is allowed to be calculated and paid out only for fully paid shares.

Shareholder is not entitled to receive dividends from the company in case the shareholder has not provided information to the company about the ultimate beneficial owner of the shares in question in accordance with the KYC/AML laws in force.

Dividends may not be determined, calculated and paid out if it arises from the annual statement or from the report on economic activity that the own funds of the company are less than the equity capital.

Dividends shall be paid out only in cash (money) – it is not possible to pay out dividends substituting money with some tangible or intangible property.

Dividends which have not been taken out within 10 years will be transferred back into the ownership of the company, except when, pursuant to the law, the limitation period is deemed to be discontinued or suspended.

The decision of the shareholders of the company that the dividends, even temporarily, are to be left at the disposal of the company will be void and not executable. The company may also not request a shareholder to return the dividends received, except the cases where apparent mistakes were made or it turns out that the shareholder was not legally entitled to the dividends paid.

If the equity capital of the limited liability company is less than EUR 2800, the company may pay out in dividends the share of the profits of the reporting year that remains after deductions in the mandatory reserve.

TAXATION

In Latvia taxation of corporate profits is postponed until those profits are distributed as dividends or deemed to be distributed. Distributed profits are subject to 20% Company Income Tax (CIT).[1] If 20% CIT from the profits of the company has been paid, the dividends paid to shareholders – Latvian residents – are exempt from personal income tax (PIT) and CIT, if the shareholder is a company. The situation of non-residents receiving dividends from a Latvian company depends on their domestic tax law and bilateral treaties concluded with Latvia. Since there is no withholding tax on dividend payments in Latvia, EU rules on the elimination of double taxation of profits of subsidiaries located in other member states are not relevant.

Does your company need any assistance with Latvian taxation regulations? Get in touch with Leinonen’s Latvian Taxation department.

[1] Before applying the statutory rate, the taxable base should be divided by a coefficient of 0.8. As the taxable base is increased by the coefficient, the effective CIT rate is 25%.

The post PAYMENT OF DIVIDENDS AND THEIR TAXATION appeared first on Leinonen Latvia.

With the aid of digital technology, you can integrate E-invoicing into your business and streamline its processes. In the upcoming years, it will also become mandatory in Latvia to have all invoices as E-invoices.

Overview of E-invoicing in Latvia

E-invoicing, often called electronic invoicing, is a digital way to send/receive invoices to customers or businesses. It has become easy for businesses to seamlessly manage their invoices with their suppliers and customers from the computer. Almost every business uses E-invoices for charging their customers, paying their suppliers, and keeping a record of their expenses.

In addition to this, the official statement by the Cabinet Minister of Latvia has made it compulsory for business managers to move in this direction. In a statement on October 12, 2021, the Cabinet Minister stated that E-invoicing will be mandatory for businesses from 2025.

He stated that all transactions for B2B and B2G will need to be performed via e-invoicing to keep a record of everything by the managers. So, if you have a business in Latvia or planning to start it, you need to integrate E-invoicing before this deadline.

Advantages of Converting Your Business to E-Invoicing

When it comes to comparing the advantages of E-invoicing with paper invoicing, you will find a long list. We have listed the most important ones here:

Quick Workflow

To operate a business smoothly, you must make sure that there are no loopholes or delays in invoicing management. E-invoicing has made it simple for every person to send, receive, and pay their invoices quickly from dedicated software.

Accuracy Assured

No need to worry if you are struggling to accurate your paper invoices. E-invoicing is your most suitable choice where you can overcome such issues. It allows you to accurately send your invoices to customers/suppliers or edit the mistakes directly from your computer.

Secure Payments

E-invoicing in Latvia is also helping businesses to be secure when it comes to processing payments. It will keep you secure in terms of payment processing, and expenses management, and help you too in recording all your invoices.

Environmentally Friendly

The digital invoicing method is also helping businesses to perform well and impact the environment less. This is because there will be no exchange of papers or the manufacturing of invoices.

Fast Payments

You don’t need to struggle with the sending/receiving of invoices for further processing. It enables you to instantly send/receive invoices for your services and pay them within minutes.

Transparency

Another major advantage of E-invoicing in Latvia is the transparency. You will have crystal clear dealings with your customers and suppliers as you are sharing them invoices with forever access.

Automatic Processing

With the help of E-invoicing, you can easily automate your business’s payment processing. You can integrate software, and automate the invoice creation and acceptance.

Impact of E-invoicing on Accounting & Financial Management

Overall, E-invoicing in Latvia has changed the entire preview for the accounts managers. For example, you don’t need to follow the manual process for invoice creation and record keeping. As an account manager, your multiple tasks like invoice creation, sending, integration with the tax system, and many others will be performed automatically with the help of e-invoicing. So, you can say that it can be an all-in-one solution for the finance department of a company.

Transform from Paper Invoicing to E-invoicing in Latvia

When it comes to shifting to E-invoicing in Latvia, you can’t blindly trust the software. You have to think about different factors before finalizing the software that your company will use for invoicing.

Undoubtedly, you can find a long list of bookkeeping software like Oracle, QuickBooks, Xero, and Zoho Books. But you can’t choose any of these without making sure they are capable. You need to make sure that the software and your preferred company are obeying the laws of the country.

Here we have listed the rules that you should keep in mind before finalizing everything and switching to E-invoicing in Latvia.

First of all, you have to make sure that the selected software complies with the General Data Protection Rule as well as the Electronic Document Law of Latvia. These rules are made to let the companies be safe when using bookkeeping software.

Similarly, you should make sure that your invoices are created according to the PEPPOL BIS 3.0 billing system. It is a specific invoice format that is accepted in Latvia for e-invoicing. If your invoices are not compatible with the system, you may face legal complications.

You need to also make sure that your business is following the rules of the country when sharing your invoices and paying taxes accordingly.

Final Summary

To keep your work operating smoothly and not experience any legal problems, we recommend shifting to e-invoicing as soon as possible. It will help you manage your business properly as well as be familiar with this invoicing type before it becomes mandatory.

For more information on how we can help you get started with e-invoicing in Latvia and for advice on what practical steps you can take towards automation please contact us today.

The post Digitalize Your Business Payrolls With E-invoice In Latvia appeared first on Leinonen Latvia.