We offer the following services:
- Preparation and submission of monthly tax / VAT declarations to the Latvian Tax Authorities
- Latvian accounting software program license fee
- Maintenance of accounting books as required by Latvian laws and normative acts
- Payroll administration for employees
- Basic bookkeeping administration, response to standard tax authority queries
- Monthly Accounts Receivable / Payable Report
- Preparation and submission of company Annual Report
- Tax and administration advice for small/medium sized businesses and individuals
BUSINESS SET UP – LATVIA
You can set up the following types of company in Latvia:
- Limited Liability Company (SIA)
- Joint Stock Company (A/S)
- Branch
- Representative office
LIMITED LIABILITY COMPANY (SIA)
This is the most popular form of company in Latvia. The minimum amount of share capital required is €3,090 at least half of which must be paid up. There are no restrictions on foreign shareholders and one director and shareholder is sufficient.
JOINT STOCK COMPANY (A/S)
This is the most popular form of company for businesses wanting to increase public capital. The minimum share capital is €35,572, all of which must be paid up before company registration.
BRANCH
A branch is owned by a foreign parent company but taxation, reposting and audit requirements are the same as Latvian companies. Any profits of the branch can be repatriated without Withholding Tax.
REPRESENTATIVE OFFICE
This form of company has many restrictions on trading and business activities and is generally used as a low cost business presence in Latvia.
All businesses have a legal requirement to keep full and complete books and records.
MAIN TAXES IN LATVIA
The two main types of taxation in Latvia are:
• Corporation Tax
• Income Tax
Other types of tax such as Capital Gains Tax may also be required depending on income.
CORPORATION TAX
The Corporation Tax rate in Latvia is 15% and all companies resident in the country, or non-residents with permanent enterprises, qualify.
PERSONAL INCOME TAX
Personal Income Tax has a flat rate of 25% and is applicable to all residents receiving income in Latvia.
VALUE ADDED TAX (VAT)
This rate is 22% and applies to the majority of sales of goods/services in Latvia. A reduced VAT rate of 12% may apply to some goods and services and exports are exempt.
CAPITAL GAINS TAX (CGT)
The tax rate for Capital Gains is 15%, with a reduced rate of 10% for dividends.
LOSSES
Previous periods’ losses can be carried forward for five years
DOUBLE TAXATION TREATY
Latvia has concluded double tax treaties with 57 countries globally.
WITHHOLDING TAX
This applies to any payments of dividends, interest or royalties of a Latvian company to a non-resident’s account.
For dividends a rate of 10% (if the incorporator is an individual), or 0% (if the incorporator is a legal entity).
For interest a rate of 5% or 10%.
For royalties a flat rate of 26%.
Useful Links
Latvian State Revenue Service:
Ministry of Finance:
Enquire About Our Accountancy & Tax Services
For further information, please contact us on +44 (0)208 421 7474 or fill in the form below: