CHANGES IN REGULATIONS CONCERNING LOW-TAX AND TAX-FREE COUNTRIES

As of July 1, 2023, new Cabinet regulations No 333 “List of low-tax or tax-free countries and territories” are effective. Cabinet regulations have been expanded with new tax-free and low-tax countries and territories:

  • the territory of the British Virgin Islands,
  • Republic of Costa Rica,
  • Republic of the Marshall Islands and
  • The Russian Federation.

Please note that transactions with the mentioned countries may affect the application of taxes. As an example, Corporate income tax (CIT) tax of 20% must be withheld from all payments to persons located, established, or established in low-tax or no-tax countries or territories.

Please contact us in case you have any questions regarding application of taxes!

contact@leinonen.lv

Recent Posts

3 days ago

Digitalize Your Business Payrolls With E-invoice In Latvia

Undoubtedly, invoicing is the most important and foremost task for every business when it comes to streamlining everything. It helps the business owners & managers…

Continue reading
5 days ago

Navigating Cross-Border Payroll and Taxation in Latvia

In our modern world, where businesses often cross borders, understanding payroll and taxation in different countries is becoming essential. With businesses frequently operating beyond their…

Continue reading
February 16, 2024

Explaining Latvia’s Per Diem: Why It Doesn’t Show on Pay Stubs

One of the most frequently asked questions from our clients has been, “Why isn’t per diem reflected on pay stubs?” In this article, we’ll explain…

Continue reading