Low tax and tax-free countries
Jun 27, 2017
17:16

If the company registered in Latvia makes payments to low tax or free tax countries, then it must withhold company income tax (15%) and must pay it in the State budget.

There are some exclusions from mentioned above. In Latvia registered comapny shouldn't withhold company income tax from following deals:

  • Payments for goods if the price of the goods isn't lower than the market price;
  • Payments for the securities of the European Union or the European Economic Area, if the securities aren't lower than market prices.

The State Revenue Service of Latvia can permit non-withholding of taxes if a payer can prove that those payments are not made with purpose to not pay taxes or to reduce the payable taxes in Latvia.

Pursuant to the Cabinet Regulations No. 276 of the Republic of Latvia the following countries and territories are considered low and no-tax areas:

on 01.06.2017

Countries
Alderney (United Kingdom)
Andorra
Anguilla (United Kingdom)
Antigua and Barbuda
Aruba (Kingdom of the Netherlands)
Bahrain
Barbados
Belize
Bermuda
British Virgin Islands
Brunei
Cayman Islands (United Kingdom)
Cook Islands (New Zealand)
Costa Rica
Curacao (Kingdom of the Netherlands)
Ecuador
Gibraltar (United Kingdom)
Grenada
Guam (USA)
Guatemala
Guernsey (Great Britain)
Hong Kong (PRC)
Isle Of Man (Great Britain)
Jamaica
Jersey (United Kingdom)
Kenya
Kuwait
Labuan (Malaysia)
Lebanon
Liberia
Liechtenstein
Macao (PRC)
Marshall Islands
Monaco
Montserrat (Great Britain)
Nauru
New Caledonia (French Republic)
Niue (New Zealand)
Panama
Qatar
Republic of Djibouti
Republic of Maldives
Republic of Mauritius
Saint Helena (Great Britain)
Saint Kitts and Nevis
Saint Lucia
Saint Martin (Kingdom of the Netherlands)
Saint Vincent and the Grenadines
Saint-Pierre and Miquelon (French Republic)
Samoa
San marino
Sao Tome and Principe
Seychelles
Tahiti (French Polynesia)
The Bahamas
The Commonwealth of Dominica
The Hashemite Kingdom of Jordan
Tonga
Turks and Caicos Islands (United Kingdom)
United Arab Emirates
Uruguay
US Virgin Islands
Vanuatu
Venezuela
Zanzibar.
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