From 2018, a new tax calculation procedure will be implemented, by which representation costs and non-business costs exceeding the set threshold will be subject to CIT.  To avoid errors in tax calculations and keep consistency in allocating the mentioned costs, Leinonen recommends developing an internal accounting methodology in the company.

To read about benefits of such accounting methodology, please read the article on our Latvian webpage: http://leinonen.lv/news/news-2017/representation-or-advertising-expenses