Tax consulting services
Tax consultations is one of the most important our business area, our employees have almost 20 years of experience in tax consultations. We offer tax consultations for planning international and Latvia local taxes, cross-border tax issues. Tax consultations are provided to customers together with services in corporate, administrative and civil rights as well as with accounting, auditing and finance services which, in cooperation with the best experts, can be provided at Latvian, Baltic and wider region level.
Tax consultations are provided to both legal entities (Latvian, foreign commercial companies), and to natural entities (residents and non-residents). We provide consultation services regarding both small tax issues (everyday tax consultations) where in-depth tax research is not needed, and for implementation of complex tax projects.
Tax consultations in such areas in Latvia: corporate income tax, permanent establishments, personal income tax and state compulsory social insurance contributions, added value tax, taxation in transactions with non-residents (withholding tax, taxation of private entities – non-residents).
Our every-day tax consultations may be divided:
Tax consultations in commercial and business law
Any commercial transaction or business decision causes certain tax and, thus, financial consequences. That is why before executing transactions or, for example, making a decision about establishing a subsidiary it is recommended to consult tax consultants before starting the transaction. We help customers minimize the tax burden, divest business risks and to coordinate transactions according to the customer’s business model. According to EU and Latvian legislation, we plan taxes and structure transactions. Our accumulated experience includes a number of areas that let us consult the choice of model for almost any transaction. Our services include:
- Evaluation and consultation of an intended or an existing transaction’s tax consequences;
- Consultations about selection and execution of legal structure most suitable for the investments;
- Evaluation of consultation about improvement of the intended or ready structure of commercial activity;
- Establishing commercial companies, permanent establishments/representative offices;
- Identification and planning of possibilities for tax saving, including tax consultations in other countries by involvement of co-operational partners of the respective country;
- Consultations about taxation for mergers and acquisition transactions, as well as, reorganisation;
- Transfer of losses within company’s group members;
- Due diligence of companies.
Corporate income tax
Corporate income tax influences both revenues and costs thus directly affecting the profit and loss statement, and therefore it is present in most of the transactions. However, there is a number of situations where the corporate income tax is not applicable. We, as the tax experts, do not advise the clients how to avoid the application of the tax, but instead, we help to apply the law according to its meaning and existing practice, allowing the customer not to suffer unnecessary expenses.
Typical corporate income tax services are as follows:
- Advising on application of the corporate income tax for particular transactions (including real estate and intangibles);
- Establishment of the tax-efficient enterprise structures, allowing to utilize the tax losses accrued;
- Tax aspects of the intra-group financing;
- Establishing deductible/non-deductible expense policy;
- Corporate income tax returns;
- Application of corporate income tax to permanent establishment (subsidiary);
Transfer pricing formation
Establishing transaction’s market value (transfer pricing) is important for companies that have foreign and/or Latvian affiliates. By reaching turnover criteria of 1.43 million Euros and the number of transactions with an affiliate (person) of 14.3 thousand Euros, the company should develop the transfer pricing documentation according to the law. Because of this, transfer pricing services may differ a lot and holds within:
- Consultations about transfer prices and their influence on taxes in current situation;
- Transfer pricing system and documents’ check within the company;
- Establishing transactions’ market value and planning of transfer pricing, drawing up transfer pricing documents and analysis of comparable data (Amadeus database);
Consultations about value-added tax and other indirect taxes
Consultations of value added tax include the following services:
- Registration of taxable person for value added tax in Latvian State Revenue Service;
- Consultations about taxation of value added tax in transactions, including cross-border transactions;
- Drawing up value added tax statements;
- Consultations in the customs, excise and natural resource tax areas in co-operation with freelance partners are provided.
Tax consultations for international transactions
International tax services are developed to help foreign investors to invest and execute a commercial activity in Latvia, as well as to widen the Latvian investors’ commercial activity in abroad. Each customer is unique and with different requirements but the most common international tax services are:
- Consultations about application of double tax treaties (advantages in taxation, tax credit and others);
- Consultation about holding companies and taxes applicable to them, establishing and servicing of holding companies;
- Tax planning for transactions (including taxes, permanent establishment risk, anti-evasion tools, Base Erosion Profit Shifting and transfer pricing);
- Lowering effective tax rates of company’s group;
- Consultations and support in executing effective financing structure of taxes, intangible property deployment and establishment of supply chains;
- Immigration services to foreign investors.
We ensure taxation according to international requirements, including compliance and readiness for BEPS (base erosion and profit shifting) requirements.
Consultations about application of private taxes
Consultations in staff taxation area deal within the application of taxes to private entities for these taxes:
- Personal income tax,
- State compulsory social insurance contributions,
- Capital gains tax.
Support in cases of tax dispute
Support in cases of tax dispute includes such tax consultations:
- Tax review similarly as done by State Revenue Service in case you wish to ascertain that taxes in your company are calculated correctly;
- Support during audit by State Revenue Service, customer representation, consultations, explanations and drawing up complaints about the ruling of State Revenue Service officers;
- Representation in court within tax (auditing) review cases.
Vindication of the determining authority’s opinion or reference
- For solving controversial issues by contacting State Revenue Service or Ministry of Finance, including for acquisition of references and written statements.