Transfer Pricing Documentation in Latvia Can Now Be Prepared in English

As of 1 May 2025, companies operating in Latvia are officially allowed to prepare their local transfer pricing documentation (Local File) in English. This regulatory update marks a significant step toward simplifying compliance for internationally active businesses.

Key benefits for companies:

• Reduced time and costs related to translation

• Convenience for multinational groups that already prepare documentation centrally in English

• Lower administrative burden in the transfer pricing process

❗ Important: The State Revenue Service (VID) retains the right to request a Latvian translation. In such cases, companies must provide the translation within 30 days.

BDO recommendation:

If your company operates internationally, we recommend assessing how this change impacts your transfer pricing documentation and what adjustments may be needed to align with the new rules going forward.

📩 For tailored advice or further information, contact us at: info@bdo.lv