Low tax and tax-free countries

If the company registered in Latvia makes payments to low tax or free tax countries, then it must withhold company income tax 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. 655 of the Republic of Latvia the following countries and territories are considered low and no-tax areas:

 

Countries  
till 31 december 2017 from 01 january 2018
Alderney (United Kingdom)  -
Andorra  -
Anguilla (United Kingdom)  -
Antigua and Barbuda Antigua and Barbuda
Aruba (Kingdom of the Netherlands)  -
Bahrain Bahrain
Barbados  -
Belize  -
Bermuda  -
British Virgin Islands  --
Brunei Brunei
Cayman Islands (United Kingdom)  -
Cook Islands (New Zealand)  -
Costa Rica  -
Curacao (Kingdom of the Netherlands)  -
Ecuador Ecuador
Gibraltar (United Kingdom)  -
Grenada Grenada
Guam (USA) Guam (USA)
Guatemala  -
Guernsey (Great Britain)  -
Hong Kong (PRC)  -
Isle Of Man (Great Britain)  -
Jamaica Jamaica
Jersey (United Kingdom)  -
Kenya Kenya
Kuwait  -
Labuan (Malaysia)  -
Lebanon  -
Liberia Liberia
Liechtenstein  -
Macau (PRC) Macau (PRC)
Marshall Islands  -
Monaco  -
Montserrat (Great Britain)  -
Nauru  -
New Caledonia (French Republic) New Caledonia (French Republic)
Niue (New Zealand)  -
Panama  -
Qatar  -
Republic of Djibouti Republic of Djibouti
Republic of Maldives Republic of Maldives
Republic of Mauritius  -
Saint Helena (Great Britain) 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) Saint-Pierre and Miquelon (French Republic)
Samoa  -
San marino  -
Sao Tome and Principe Sao Tome and Principe
Seychelles  -
Tahiti (French Polynesia) Tahiti (French Polynesia)
The Bahamas The Bahamas
The Commonwealth of Dominica The Commonwealth of Dominica
The Hashemite Kingdom of Jordan The Hashemite Kingdom of Jordan
Tonga Tonga
Turks and Caicos Islands (United Kingdom)  -
United Arab Emirates  -
Uruguay  -
US Virgin Islands US Virgin Islands
Vanuatu Vanuatu
Venezuela Venezuela
Zanzibar Zanzibar
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