Dividends and building up the shareholding structure for Latvian companies
This article describes the principles of planning dividends and shaping the tax-effective shareholding structure for Latvian companies. [...]
New Latvian Controlled Foreign Companies Rules
As of 1 January 2019 Latvia has introduced controlled foreign companies rules by amending the Corporate Income Tax Act. According to the rules a Latvian company has to apply the CFC rules, if it: [...]
Intangible assets revaluation
Question: Latvian company A has sold a trademark to another Latvian related company B. Company B has licensed back to A the rights to use the trademark. The arm’s length value of the trademark was assessed using a discounted cash flow analysis. After a couple of years, it appears that the sales of the group are [...]
New transfer pricing documentation requirements in Latvia
Introduction On 25 October 2018 the long-awaited amendments to the Taxes and Duties Act regarding the transfer pricing documentation requirements were finally passed. [...]
Employee stocks and stock options
On 15 June 2017, the Saeima adopted comprehensive amendments to the Commercial Law (these amendments entered into effect on 13 July 2017), which, inter alia, also governs matters regarding employee stock and personnel options. [...]
How to determine the market value of interest on loans to associated companies
Associated companies frequently issue loans to each other, which must, like other transactions between associated companies, conform to market value. Currently, this issue has received additional topicality due to the fact that interest payments that exceed their market value are considered to be equivalent to dividend payments. This means that the issue of determining [...]