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Gencs Valters
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Gencs Valters
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Doing Business Guide in the Baltics.

Tax services in Latvia

Tax services are one of our core practice areas since the very foundation of the law firm. Our law firm has been recognized by our clients as first tier tax advisor in Latvia. Since 2008 we are also providing tax services in Estonia and Lithuania.


We offer tax advice in international and domestic tax planning, tax litigation, market entry strategies and cross-border tax issues. With our deep knowledge of taxation we are able to offer a truly comprehensive legal service also in other practice areas, such as mergers and acquisitions in Latvia, Lithuania and Estonia..


Before commencing business activities in Latvia, it should be noted that all income derived in Latvia is subject to corporate income tax 15%. There are thin capitalization and transfer pricing rules applicable, as well as there is withholding tax on certain categories of outward payments. However, a recent and attractive possibility is to reduce taxable income by deemed interest rate on retained earnings. That is, companies are able to reduce their effective tax rate, if their shareholders do not distribute retained earnings. Additionally, carry loss forward period is five years.


Another recent development is Micro-Enterprise Tax. This type of tax may be applied on small companies and sole proprietors, whose turnover does not exceed 100 000 EUR per year and who meet several other criteria regarding number and remuneration of employees. The tax rate is only 9% on turnover and it includes corporate income tax, social contributions, personal income tax and other labor related contributions.


In general, VAT registration is mandatory for companies or persons, whose turnover exceeds 14 000 EUR. Different thresholds are applicable for certain categories of goods or for international or intra-Community transactions. Related companies may establish a VAT group by pooling their obligations and rights, while communicating with Latvian tax authority.



For further assistance on tax planning, please contact our law firm.



The full list of fields of our expertise in taxation is as follows:


. Tax planning and  optimization in Latvia

. Tax litigation in Latvia
. International cross-borders transactions in Latvia
. Value added Tax (VAT) in Latvia
. Social Security in Latvia

. Corporate income Tax in Latvia
. Withholding Taxes in Latvia
. Personal Taxation, including filling of Annual Tax returns for expatriates in Latvia
. Representation before Tax authorities in Latvia

. Appeal of Tax assesments in Latvia

. Preparation of declarations in Latvia
. Arranging  residence certificates according to double taxation agreements in Latvia
. Property tax in Latvia
. Payroll taxes in Latvia
. VAT representations and registrations in Latvia

. Excise tax in Latvia
. Packaging tax in Latvia
. Natural resource tax in Latvia
. State dues in Latvia
. Land transfer dues in Latvia

. Tax audits in Latvia
. Accounting consulting in Latvia

Value added tax  in Latvia

VAT  in Latvia

VAT registration  in Latvia


VAT registration  in Baltics

VAT representative in Latvia

Value added tax registration  in Latvia

Value added tax fiscal representative  in Latvia

Value added tax representative  in Latvia


Double taxation treaties   in Latvia

Transfer pricing in Latvia

Holding companies  in Latvia

Dividend taxation  in Latvia

Royalty taxation  in Latvia


Permanent establishment tax  in Latvia

Independant services tax in Latvia

Dependant services tax in Latvia

Interest tax in Latvia

Business profit tax  in Latvia


Income from immovable Property tax  in Latvia

Taxation of income Law in Latvia

Tax on capital  in Latvia

Exchange of tax information  in Latvia

OECD Model tax in Latvia

For questions, please, contact Valters Gencs, attorney at law at

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The material contained here is not to be construed as legal advice or opinion.

© Gencs Valters Law Firm, 2016
Claim your FREE copy
Doing Business Guide in the Baltics.