Background of SLC
1. Between Latvia and Russia there was signed and ratified the “Double Taxation Avoidance Agreement”, which came into force on January 1, 2013.
2. Since January 1, 2013 Latvia has joined the holding regime. This means a number of benefits and advantages for the parent company, established in Latvia, such as tax benefits, ie, the following categories are not subject to income tax on enterprises:
• dividends received from non-residents;
• dividends paid to non-resident companies;
• profit on sale of shares of affiliated companies.
3. The interest payments, paid by Latvian companies to the related companies in the EU, are not subject to taxes.
4. Payments for intellectual property, made by Latvian company to EU company, are not subject to taxes.
5. From January 1, 2014 the tax exemption for interest payments and payments for intellectual property will be also valid for related companies, established in the third countries (Russia, Ukraine, Belarus and other countries outside the EU).
6. The unique geographical location of Latvia - a “gateway” to Europe.
7. Macro and microeconomics requires a more responsible attitude to the issues, such as cost saving and use of legal instruments for tax optimization.
2. Since January 1, 2013 Latvia has joined the holding regime. This means a number of benefits and advantages for the parent company, established in Latvia, such as tax benefits, ie, the following categories are not subject to income tax on enterprises:
• dividends received from non-residents;
• dividends paid to non-resident companies;
• profit on sale of shares of affiliated companies.
3. The interest payments, paid by Latvian companies to the related companies in the EU, are not subject to taxes.
4. Payments for intellectual property, made by Latvian company to EU company, are not subject to taxes.
5. From January 1, 2014 the tax exemption for interest payments and payments for intellectual property will be also valid for related companies, established in the third countries (Russia, Ukraine, Belarus and other countries outside the EU).
6. The unique geographical location of Latvia - a “gateway” to Europe.
7. Macro and microeconomics requires a more responsible attitude to the issues, such as cost saving and use of legal instruments for tax optimization.