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Local Tax News: the first CIT return and changes for the application of the PIT rate

19 June 2018

Deadline for the first CIT return – July 20th

- For the period from January 1st 2018 till June 30th 2018.

- Must be submitted if there is a taxable base, i.e.:

  • Calculated dividends, including extraordinary dividends;
  • Disbursements equivalent to dividends, conditional dividends;
  • Expenditure not related to economic activity;
  • Liquidation quota.

- Starting from July, tax returns must be submitted each month until the 20th of the following month.

- CIT advance payments do not need to be paid after June 30th.


Amendments to the law for the application of the PIT rate

Amendments in the PIT law have been accepted (enters into force on 01.10.2018). In addition to submitting a written application to apply the 23% tax rate instead of the 20% tax rate, employees will be able to make a note in their electronic salary tax book.

Furthermore, it will also be possible to make a note in the electronic salary tax book about not applying the monthly non-taxable minimum forecasted by the State Revenue Service.

State Revenue Service of Latvia will inform the employer, to whom the electronic salary tax book is submitted, within three days about not applying the differentiated non-taxable minimum if the employee’s yearly income has reached 12000 EUR (in 2018).