Preword Manufacturing companies within the group may experience operating losses due to various commercial factors, including adverse market conditions, increased raw material costs, supply chain disruptions, or reduced demand. However, recurring or prolonged losses often attract increased scrutiny from tax authorities and auditors. In such circumstances, tax authorities may examine whether the manufacturer's transfer pricing [...]

General Starting from 1 January 2026, Latvian companies whose shareholders are exclusively individuals can elect a new dividend taxation model: • 15% Corporate Income Tax (CIT) on distributed profits (instead of the standard effective 20% regime) • 6% Personal Income Tax (PIT) withheld from dividends paid to individuals. Although the total Latvian effective tax burden [...]

If you are a Latvian tax resident and work or have worked abroad, it is important to understand where taxes must be paid, when a tax return is required, and how residency status affects your obligations. This guide explains the essentials in plain English. Who is considered a Latvian tax resident? You are generally treated [...]

As of 1 January 2026, significant amendments to the transfer pricing framework have come into force in Latvia. This article summarizes the key transfer pricing changes in 2026, explains which companies are affected, and provides a practical perspective on how to apply these requirements in day-to-day operations. https://breicis.com/en/product/transfer-pricing-updates-in-2026/ Key Development – Controlled Transactions Report in [...]

Introduction On 1 January 2026, amendments to Article 15.² of the “Law on Taxes and Duties” entered into force, introducing several significant changes to Latvia’s transfer pricing regulation. The aim of these amendments is to expand documentation requirements, introduce a more structured reporting system, refine applicable thresholds, and strengthen the tax administration’s oversight tools.   [...]

Introduction In Latvia,  the accounting practices are primarily governed by national laws which are mostly aligned with EU directives, thus ensuring both local relevance and international compatibility. This article explores the accounting process in Latvia, outlining the regulatory framework, bookkeeping practices, financial reporting standards, tax obligations, and the role of technology and outsourcing. Whether [...]