Tax consultations for legal entities (for Latvian, foreign companies), individuals (residents and non-residents). We provide tax consultations about both small tax issues (every day tax consultations), where an in-depth tax research is not needed, and in implementation of complex tax projects:
- Evaluation of taxation for planned or already executed transactions;
- Tax planning for cross-borders transactions;
- Consultations on how to avoid double taxation in international contracts;
- Tax verification similarly as it is done by the State Revenue Service in case you wish to make sure that taxes are calculated correctly in your company;
- Solving controversial issues by contacting the SRS or Ministry of Finances, including acquisition of references and written explanatory statements;
- Assistance during SRS auditing, when we help with drawing up explanatory statements and advocating your taxation position;
- Identifying and planning possibilities of saving taxes, including involving foreign affiliates;
- Due diligence of the companies.
We help our clients to lower tax burden, to distinguish business risks and to coordinate transactions in accordance with the client’s business model. In accordance with EU and Latvian legislation, we plan taxes and structure transactions. Our amassed experience involves a notable number of industries, which allows us to consult almost any transaction about the choice of model.
We ensure taxation in accordance with international requirements, including compliance with and maturity for demands of BEPS (base erosion and profit shifting).
Tax consultations in these industries: corporate [income] tax, permanent establishments, [personal] income tax and state mandatory (compulsory) social insurance contributions, value added tax, taxation of transactions with non-residents (deduction taxes, taxation of physical entities – non-residents).
We develop and help make transaction structures:
- holding companies (using holding modes of Latvia and other countries);
- trade of goods (structuring business, companies, subsidiaries, permanent establishments);
- structuring of intellectual property (trademarks, patents);
- funding structures (loans and finance instruments).
World of transactions is becoming more transparent resulting in many structures of transactions, which were successfully used before 5 to 10 years being left in the past. In structuring transactions, principles as point and transparency of the transactions, coordination of making profit with the activities implemented should be considered more. In that respect, we offer to evaluate the previous structures and to develop the necessary changes in them.
Transfer pricing services mostly include drawing up the transfer pricing documentation in accordance with demands of regulatory enactments of Latvia and OECD transfer pricing guidelines.
Depending on what the client needs, the transfer pricing documentation can be drawn up fully, including such articles as: overview of the industry, group analysis of the company, functional analysis, methodology of transfer prices, and analysis of comparable data by using the AMADEUS database created by Bureau van Dijk. In separate cases, our services include methodology of transfer pricing and services of selecting the comparable data only.
We also provide consultations on transfer pricing issues and organize training and seminars on transfer prices and other tax-related issues.
Additional information about transfer prices is available at: www.transfertcenas.lv.
Our experts have been included in the evaluation of capital contributions expert’s list of Register of Enterprises of the Republic of Latvia, having rights to evaluate and give their opinions in such industries:
- Entrepreneurial activity (for example evaluating a company in case of restructuring);
- Intellectual property (trademarks, licences, patents);
- Debts/liabilities subject to capitalisation;
We have considerable experience in providing the evaluation of capital contributions by rendering services to both Latvian and international companies. The evaluation is carried out according to the specific character of the company, and it reflects the possibilities and future perspective of the object under evaluation in the current situation.
By summing up situations, in which evaluation of the company or business is desired, such cases can be separated:
- Reorganisation and joining of companies;
- Securing the owner’s property interests;
- Purchase-sale transactions of shares;
- Planning of business and investments;
- For Register of Enterprise, for justification of capital contribution in the fixed capital of the company;
- Selling the shares between the connected undertakings, to prove compliance of the transaction to demands of transfer prices to the State Revenue Service;
- For planning investments and business.
Evaluation is provided by implementing evaluation methods that are approved internationally.
VAT services are one of our key focus areas, we provide daily value-added tax services as well as make complex tax issue examinations. The brief description of what we do in relation to value added tax is provided below.
We will help you to find an optimal VAT position for current or planned business activities. Our experienced and well-equipped specialists will assist you with VAT planning and compliance both internationally and locally.
The VAT compliance services typically include:
- VAT registration and de-registration
- preparation and submission of the VAT monthly, quarterly and annual VAT returns
- seeking a ruling or opinion of the State Revenue Service or Ministry of Finance with respect to VAT matters
- VAT day-to-day consultancy.
VAT consultations and planning
Whereas the tax laws are becoming more demanding, the planning of business involves more in-depth knowledge of the tax laws and practice. Our professionals are experienced so they can assist you to navigate through the complex tax and legal matters. Typically, we provide the VAT consulting services for the following:
- local and international VAT issues
- application of the VAT in mergers and acquisitions, e.g. sale of shares, the sale of a business as net assets
- application of VAT for holding companies, e.g. VAT recovery for management services supplied
- VAT implications of real estate transactions: sale/purchase, refurbishment, construction etc.
- VAT simplifications on international transactions:
- consignment/call-off stock
- importation in bonded warehouses,
- distance selling etc.
- VAT grouping
- Input VAT deduction
- application of VAT to financial services
- VAT litigation
- Training on VAT issues
- VAT reviews
Special VAT regimes
There are a few special VAT regimes available, which along with 0% corporate income tax makes Latvia attractive place for business:
- simplified import regime (applying 0% VAT on importation)
- VAT Mini one-stop shop (MOSS) regime
We provide assistance in planning and implementation of the special VAT regimes, as well as, to ensure VAT compliance.
Assistance in VAT audits and litigation
- Assistance in the tax disputes with the State Revenue Service regarding the VAT issues
- Appealing the decision of the State Revenue Service and representation in the court.
- Review of the VAT payer’s entitlement for a refund and assistance during the VAT refund process
- Consulting regarding the VAT rules and regulations
- VAT refund applications and documents
- Liasioning with the Latvian State Revenue Service during the VAT refund process.
We will carry out the tax examination to find out the errors and omissions related to output and input VAT:
- recovery of input VAT
- verification of source documents
- verification of the VAT returns
- testing permanent establishment and the fixed establishment
- application of Latvian and foreign VAT. [/read]
By cooperating with qualified finance experts we provide in-depth finance consultations and services of finance director, which involves services such as:
- Establishing prime cost;
- Price calculations;
- Analysis and preparation of monetary flow;
- Preparing a budget;
- Attraction of funding.
Services are provided to both Latvian and foreign companies. Finance services are used in cases when it is necessary to establish goods, area of business, cost-efficiency of investments, to develop complicated finance calculations, drawing up or improvement of the budget, etc.
We provide the necessary legal services in commercial rights area. Legal services include:
- Choice of the company’s type (capital company, subsidiary, permanent establishment);
- Registration of capital company, and other business forms;
- Registering changes in the Register of Enterprises;
- Drawing up the legal documents (contracts, etc.);
- Intellectual property rights;
- Immigration rights;
Representation in the State Revenue Service and Administrative courts.
Registration of companies
Before establishing a company, out team will ensure you with all information needed for your business, will provide consultations about establishing a company, the applicable taxes and will provide an insight in other demands, which are connected with realization of business activities in Latvia.
By establishing a company in Latvia, a possibility to execute legal transactions with both European Union companies, and companies, which are located in Eastern Europe is ensured. Because Latvia is a European Union’s member state, it’s companies have an ensured access to the European Union’s market. Particular attention should be paid to such advantages of Latvia: the favourable geographical location, knowledge of Russian and information about the market provides a chance to get into the market of Eastern Europe.
Competitiveness of Latvia is increased by the introduced tax relief. In addition to them, the corporate tax rate in Latvia is 15%, and tax relief is introduced for increase in capital, which has occurred as a result of selling the shares (Latvia’s holding mode).
Legislation in Latvia is focused on promotion of business and it insures equal regulatory enactments for both foreign and domestic investments. Latvia has a “friendly” environment for realization of business activity, which ensures access to reliable and qualified workforce, developed infrastructure which complies with international standards, and lower business maintenance costs in comparison with a lot of member states of the European Union. In addition, in a World Bank’s research “Doing Business Survey 2012” which inspects business environment, Latvia has been ranked in 25th place in the list of most favourable countries for realization of business activities.
Registration of a company in Latvia often ensures decrease in administration expenses to the entrepreneurs, giving a chance to invest the resources saved in development of the company. The favourable tax structure for holding companies ensures decrease in taxable sums, and an effective repatriation of profit tax.
Accounting and audit
Accounting services include both every day accounting services, and complex business activity support services, which include the relevant legal services, tax planning and other services.
Our every accounting services are:
- Accounting of companies, foreign company subsidiaries or permanent establishments in accordance with regulatory enactments of legislation of Republic of Latvia;
- Tax accounting, drawing up and submitting tax reports for state institutions;
- Representation in SRS and other state institutions;
- Drawing up and submitting VAT declarations;
- Drawing up annual reports;
- Statistics report for Central Statistical Bureau, Bank of Latvia;
- Annual tax declarations;
- Drawing up statements and reports for the members or shareholders.
We provide the company’s finance audit (reviews) and related services in cooperation with qualified auditors:
- Audit or review of company’s financial statement;
- Inspection of the internal control system;
- Inspection of company’s reorganization;
- Inspection of reports on liquidation of the company.
All previously mentioned services are provided in accordance with International revision standards and laws of Republic of Latvia.