Amendments to the Corporate Income Tax Law
According to the latest amendments to the Corporate Income Tax Law taxes on in-bound and out-bound dividends, interest payments and payments for the use of intellectual property will be gradually reduced.
As of 1 January 2013 dividends paid by Latvian residents to non-residents will be corporate income tax (CIT) exempt. As of the same date also the dividends received by a Latvian company from a non-resident will be CIT exempt unless the payer of the dividends is a resident of low-tax or no-tax jurisdiction. As of 1 August 2013 tax exempt will be interest payments and payments for the use of intellectual property paid to a related EU company and as of 1 January 2014 tax exempt will be interest payments and payments for the use of intellectual property to any party, except the payments to residents of low-tax and no-tax jurisdictions.
