The Saeima has approved amendments to the Corporate Income Tax Law, revising the so-called “thin capitalization rules”. Latvia has thin capitalization rules (thin cap rules) in force, which must be considered when attracting financing in the form of loans, as in certain cases they limit the recognition of interest payments as deductible expenses for tax […]
Amended Thin Capitalization Rules Lasīt vairāk »
2025. On October 23, the European Union adopted the 19th sanctions package, which significantly expands restrictions on crypto-asset transactions and payment services. The changes affect both the financial sector and the digital asset market, making circumvention of sanctions using crypto-assets almost impossible. Below, we will examine the main aspects of the new sanctions package, its
Expanded Prohibitions and New Obligations for Crypto-Asset Service Providers Lasīt vairāk »
As of 2025, European Union Directive 2025/1539 has entered into force, introducing amendments to the procedure for applying value added tax (VAT) to distance selling transactions involving imported goods. These amendments concern the so-called Import One-Stop Shop (IOSS) regime, which aims to simplify and harmonize VAT administration in cross-border e-commerce transactions. Before delving into a
Amending VAT Application Rules for Imported Goods in Distance Selling Transactions Lasīt vairāk »
The Law on Compensation for Damages Caused by State Administrative Institutions (Compensation Law) grants a private individual the right to compensation for pecuniary loss or non-pecuniary harm in administrative proceedings caused by an unlawful administrative act or unlawful actual action of a state administrative institution. In judicial practice, there are several cases where the court
Every entrepreneur’s goal is to build a successful business and generate profit. A large number of entrepreneurs are focused on finding new clients, attracting additional funding, and business growth, and they lack the time or simply the desire to deal with bureaucracy and processes that do not generate profit. Such processes include checking existing or
Sanctions Guide for Entrepreneurs Lasīt vairāk »
To start a legal business, several aspects and issues are significant, which are not always well-considered before launching. Likewise, a legal entity is required that is permitted to conduct economic activity, namely a merchant, which can be a natural person (individual merchant) or a commercial company, which is a partnership (limited partnership or general partnership)
SOME IMPORTANT THINGS TO CONSIDER BEFORE STARTING YOUR BUSINESS Lasīt vairāk »
Today, we increasingly hear words like “sustainability” or “ilgtspēja”; unfortunately, for many entrepreneurs, these words are as understandable as abracadabra magic words. We live in a world of limited resources, and in a society with diverse desires and interests, it is essential to find a balance between society’s (including future generations’) interest in living in
When I was approached to write an “introductory course” for new businesses on taxes, it seemed that the article would consist of only one sentence, because the most important thing entrepreneurs need to know about taxes is that “One way or another, taxes will have to be paid!”. This is a truth that new entrepreneurs
In recent years, the shadow economy index in Latvia has not decreased. In 2018, it constituted 20.24% of GDP, and in 2021 – 20.22% of GDP.[1] “Envelope wages,” or undeclared employment income (obtained through double-entry bookkeeping and tax evasion), constitutes a significant part of the shadow economy. According to the SRS’s annual assessment conducted in
FIGHTING “ENVELOPE WAGES” NOW AND IN THE FUTURE Lasīt vairāk »
