Amendments To The Law "on Personal Income Tax"

Original Language Title: Grozījumi likumā "Par iedzīvotāju ienākuma nodokli"

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Read the untranslated law here: https://www.vestnesis.lv/op/2012/192.5


The Saeima has adopted and the President promulgated the following laws: the amendments to law "on personal income tax" make law "on personal income tax" (the Republic of Latvia Supreme Council and Government Informant, 1993, 22/23.nr.; The Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1994, nr. 2, 23; in 1995, 8., no. 14; 1996, no. 9; 1997, nr. 3, 21; in 1998, no 1; 1999, nr. 24; 2000, no. 5; 2001, no. 1, 24; in 2002, no 6; 2003, no. 15; 2004, no. 2; in 2005, 2., 8., no. 24; in 2006, 14, no. 22; 2007, 3, 12, no. 24; 2008, no. 12; 2009, 1., 2., no. 15, 16; Latvian journal, 2009, 200. no; 2010, 82, 131.178.206., no; 2011, 99, 144, 157, 204. no; 2012, 44, 88, 92 no) the amendments are as follows: 1. Article 3, third paragraph: replace paragraph 11, the word "promissory notes" with the words "transferable securities"; Express 18 as follows: "part of the surplus, 18) which received in accordance with the law on cooperative societies under recognized agricultural service cooperatives or cooperative society of forestry service members according to their cooperative society used services;". 2. in article 8: replace the words "in part 2.3 owner" with the word "participant"; Express 2.4 part as follows: "2.4 relating to benefit from light vehicles, which are exempt from taxation the company light vehicle tax in accordance with the vehicle operating tax and company car vehicle tax Act article 14, point 6 of the first subparagraph, of this article shall not apply to the Vehicle part 2.3 operating tax and company car vehicle tax Act article 14, first paragraph, point 6 is compliant economic operator (also of the permanent representation of the non-resident) the Council, or Board members and employees, as well as the owner of the farm, the family members and employees. This article does not apply to fishermen, part 2.3 of the owner of the farm, the family members and the staff regulations and the grant of aid laid down the necessary annual eligibility criteria for agricultural service cooperatives Council and Board members and employees. " Add to article 2.5, 2.6, 2.7 and 2.8 in part as follows: "the income for which 2.5 pay payroll tax, also considered income earned through stock purchase rights that the employee or Board member of the Council on the basis of employment assigned by the employer or a corporation that is associated with the employer company law" on corporate income tax ". Income generated through this part of the purchase of shares referred to in the law, with no duty shall be this law, the first paragraph of article 9 of the 43 cases referred to in paragraph. 2.6 2.5 parts of this article, as well as article 9 of this law, the first paragraph of paragraph 43, eleventh paragraph of article 9 and article 11.11 of the employment relationship within the meaning of the Council or the Board of the Corporation shall be considered as also to other forms of contractual relations established on the basis of which the Council of the Corporation or the members of the management board performs its duties the Corporation, while the Corporation Council or Board shall be assimilated to the employee. 2.7 gainful employment income also issued clear treated or non-cash advances that employee, Board Member, Council Member, owner, Member or members assigned commercial companies, cooperative societies, the European company, the European cooperative society, the European economic interest groupings, associations, foundations, companies, individual farmers or fishermen, farm organizations, individual merchants or natural persons registered in the State revenue service as an economic analyst, if on it or a part of the settlement is not made within 90 days after travel or business trip ends but in other cases, within 90 days of cash or non-cash advance from the date of issue. The meaning of this part of the 90-day period, with the number of the next day after a business trip or travel or after non-cash or cash advance from the date of issue. 2.8 2.7 this article part does not apply if the total of the cash or non-cash advance the remaining amount, which is at the disposal of the beneficiaries the advance does not exceed the national minimum monthly wage. "; Supplement third with 12.2 points as follows: "122) income from the participation of major foreign companies in accordance with the conditions laid down in article 17.3 of the law regardless of whether foreign companies profits has been broken;"; make the third subparagraph of paragraph 16 as follows: "part of the surplus, 16) which received in accordance with the law on cooperative societies under recognized agricultural service cooperatives or cooperative society of forestry service members according to their cooperative society used services;"; Supplement to the twelfth article as follows: "the application of this article 12, third part, paying in taxable income does not include dividends or profits or the increase in value of the assets part of the income which, in accordance with this law, article 17.3 already paid tax, have been paid to a foreign company, in which the payer (resident) has a significant interest." 3. Article 9: replace the first subparagraph of paragraph 6, the word "promissory notes" with the words "transferable securities"; Add to 34.1 points after the words "duly seized immovable property" with the words "and the number if that property is a property of the taxpayer for more than 60 months (from the date of the real estate is registered in the land register) or"; replace the 21.8 points in "2012," with the number "2014"; to supplement the first part with 43 as follows: "43) income from this law, article 2.5, part stock purchase rights, stock purchase rights already granted under stock purchase rights plan and the implementation of the following provisions: (a) the stock purchase rights) of the minimum holding period (the period from the granting of share purchase date to the date on which the employee is entitled to launch a stock purchase rights) of not less than 36 months stock purchase, b) rights holding period (the period from the granting of share purchase date to the stock purchase rights to date) the employee's employment relationship with the Corporation, which has granted a taxable person the right to purchase the shares or company associated with the law "on corporate income tax "within the meaning of the person assigned to the stock purchase rights, c) the employer has provided the State revenue service 11.11 article of this law, the information referred to in the fourth subparagraph."; to supplement the article with the eleventh subparagraph by the following: "11. the first subparagraph of this article 43, point" b "within the meaning of the conditions of subparagraph implementation also in the following cases: 1) stock purchase rights in the person holding period after termination of the Corporation that issued the share purchase rights, has entered into an employment relationship with the Corporation, which is the employer of the company law" on corporate income tax "; 2 stock purchase rights) of the holding period is granted in the national old-age pension (including premature) and the payer and employer have given up working relationship. " 4. in article 11: adding to article with 1.5 part as follows: "a natural person income 1.5 from scrap metal sales do not qualify as economic activities regardless of the compliance with this article of the criteria referred to in paragraph 1.3, except that the scrap metal sold individual merchant, who according to the procedures laid down in the laws and in the received license of ferrous and non-ferrous metals scrap and scrap buying Latvia."; make the second paragraph 2.1 the following: "21) part of the surplus that gets under the cooperative societies act on the appropriate recognized agricultural service cooperatives or cooperative society of forestry service members according to their cooperative society used services;"; to supplement the article with eighteenth and nineteenth part as follows: "6. Person to contract the company employs merchant, individual company (also a farmer or fisherman's farmstead), cooperative society, a non-resident permanent representation, authority, organization, Association, Foundation or the natural person who is registered as an agent of economic activity, is entitled not to register in the State revenue service as operational. In this case, the person in determining taxable income are not eligible to apply to operating expenses. 19. If a sole proprietor or a natural person individual owned company (also a farmer or fisherman's farmstead) registered and carry out economic activities in accordance with the law on regional development in certain special assisted area and in accordance with the third paragraph of article 4 paragraph scrapped fixed asset depreciation, calculated in accordance with the law "on enterprise income tax" in article 13, first paragraph, point 9 of this article, or the tenth part of the losses of the order These benefits are applicable in accordance with the Commission on 15 December 2006, Regulation (EC) No 1998/2006 on 87 and 88 of the Treaty. application of article de minimis aid (Official Journal of the European Union, of 28 December, no L 379). " 5. in article 11.5: Express 4.1 part as follows: "the fourth part of this article 4.1 shall not apply if the passenger car (other than a passenger car, the representative of the law" On enterprise income tax ") is paid in the company of light vehicle tax is it exempt from taxation the company light vehicle tax in accordance with the vehicle operating tax and company car vehicle tax Act article 14, first paragraph, point 5 or 6. whether their business uses the fisherman's farmstead. Fixed assets are depreciated as a business vehicle used. "; Express 6.1 and 6.2 part as follows: "6.1 the sixth part of this article shall not apply if the passenger car (other than a passenger car, the representative of the law" On enterprise income tax ") is paid company light vehicle tax. In this case, the passenger car fuel acquisition expenses include operating costs based on the actual number of kilometres travelled in each month, which made these payments, but not more than the rate of fuel consumption for 100 kilometers, exceeding the izgatavotājrūpnīc city cycle fuel consumption of more than 20 percent. 6.2 If a passenger car (other than a passenger car, the representative of the law "On enterprise income tax") is paid company light vehicle tax is it exempt from taxation the company light vehicle tax in accordance with the vehicle operating tax and company car vehicle tax Act article 14, paragraph 5, first subparagraph, of the person so operating costs (excluding fuel acquisition expenses) apply to operating expenditure. '; turn off 6.3 paragraph, the words "farmers or"; Add to article 6.4 and 6.5 of the part as follows: "6.4 At the expenses directly related to economic activity, added to the driving of the vehicle tax and company car vehicle tax Act article 14, first paragraph, the requirements of point 6 under merchant or farmer's holding costs related to passenger car (other than a passenger car, the representative of the law" On enterprise income tax ") when the passenger car is exempt from taxation the company light vehicle tax in accordance with the vehicle operating tax and corporate tax from light-duty vehicles Law article 14, first paragraph, point 6. The following passenger car fuel acquisition expenses to the merchant or farmer's farmstead include operating costs based on the actual number of kilometres travelled in each month in accordance with the taxpayer's specific fuel consumption of 100 kilometers to not exceeding the specified izgatavotājrūpnīc the city cycle fuel consumption of more than 20 percent. 6.5 at the expenses that are directly related to economic activity, plus fuel purchase expenses associated with the passenger car (other than a passenger car, the representative of the law "On enterprise income tax"), which a merchant or farmer's farmstead used exclusively for your business needs and are declared in the vehicles and their drivers in the national registry in accordance with the vehicle operating tax and company car vehicle tax Act article 14, first paragraph, point 5. " 6. in article 9: Add to article 4.1 of this part: "4.1 On the acquisition value of shares is considered the market value of the stock purchase rights day if the shares were acquired through the purchase of shares, and stock purchase rights day in income is taxable according to article 8 of this law and article 11.11 2.5."; to complement the 7.1 part after "December" with the words "and the payer does not have a document showing real estate acquisition value". 7. To supplement the law with 11.11 article as follows: "article 11.11. Employer or with the employer, related company awarded stock purchase rights and disposition of income determination and the determination of the content of this income support income from the stock 1 purchase rights is defined as the market value of shares of stock purchase rights and the date of the acquisition value of shares. 2. the market value of shares of the stock purchase rights day is determined as follows: 1) publicly traded shares in the stock-purchase rights day fixed-weighted average price of the shares or, in the absence of such, — market value, determined in accordance with the rules of the regulated market; 2) shares that are not publicly traded, the stock value in the opinion of the independent written, which also includes a methodology for carrying out the assessment, and the person who according to the commercial property investment included in the list of evaluators. 3. For stock purchase rights for the purposes of this law, be considered as a purchase of shares of stock purchase rights to the contract price or, if so specified in the Treaty, the receipt of shares free of charge. 4. Two months after employees over the period in which the stock could apply to purchase the rights or granted stock purchase rights (if the stock purchase rights plan provides for a login to purchase rights of the shares), the employer shall submit to the State revenue service established by the Cabinet of Ministers information about: 1) stock purchase rights plan in participating enterprises; 2) employees criteria required to qualify for participation in the stock purchase rights plan; 3) conditions for the exercise of the right of purchase of shares at the time the employee can purchase shares; 4 stock purchase rights) of the implementation plan, the minimum stock purchase rights holding period; 5) options to implement the stock purchase rights when the employment relationship is terminated; 6) employee opportunities to dispose of shares allocated purchase rights or options to purchase shares the right to inherit in case of death of the employee; 7 stock purchase rights) of the conditions of implementation; 8) employees who confirmed their participation in the stock purchase rights plan. 5. the second paragraph of article 2 of the opinion referred to in paragraph being a limited company shall ensure, before being launched stock purchase rights. That opinion is valid for 12 months from its date of composition, if one has been of the opinion was a significant condition, which these ratings will not reflect the fair value of the shares. 6. If, according to the stock purchase rights plan conditions the employee disposes of the share purchase rights, stock purchase rights day no matter which person the exercise of those rights by the calculation of the employee (who was originally assigned to the stock purchase rights) of the taxable income in the first part of this article in accordance with the procedure laid down in this law and apply the second paragraph of article 15 defined in the payroll tax rate. 7. If, according to the stock purchase rights plan conditions the employee retains the right to exercise the stock purchase rights after termination by the employer or a corporation that is associated with the employer company law "on corporate income tax", or disposes of the stock purchase rights after the termination by the employer or a corporation that is associated with the employer company law "on corporate income tax" the former employer stock purchase rights day no matter which person the exercise of those rights by a former employee of the calculation (which was originally assigned to the stock purchase rights) of the taxable income in the first part of this article. That the taxable income attributable to the tax period in which was terminated, and then apply this law article 15, second paragraph, the respective tax period laid down in the existing payroll tax rate. 8. the employee, former employee, or other natural persons from the employee or former employee, or other person is acquired by an employer or a corporation that is associated with the employer company law "on corporate income tax", the purchase of shares granted rights, income from capital gains earned by disposing of shares or share purchase rights exercise of the right of purchase of the resulting shares, determined in accordance with article 9 of this law. " 8. Supplement article 12 fifth after the words in brackets "(including the bonus at pension insurance seniority accrued up to 31 December 1995)" with the words "or the recalculated pension after January 1, 1996". 9. Article 13: adding to the first part of paragraph 1, after the words "the law" on State pensions "" with the words "or other public pension"; adding to the third paragraph after the words "other person" with the words "or" micro-enterprises; to supplement the article with a 3.3 share the following: "3.3 for the application of the first subparagraph of paragraph 1," b "," e "and" f "section, the person shall submit to the State revenue service training authority certificate that the dependent person after 18 years of age shall continue the General, vocational, higher or special education."
10. Add to article 16.1 of the eleventh, twelfth and thirteenth part as follows: "for the share purchase 11 rights (income generation) of this law, within the meaning of the day considered the date when the law established over the ownership of the shares. 12. On the income from the day this law article 8 income referred to in paragraph 2.7, considered the next day after the expiry of the period of 90 days, if these have been settled within 90 days of this law article 8 2.7 referred advances. 13. On income generating daily from society needs requires the disposal of real property is considered the next day after day when rolled down my 12 months from the date of payment of the remuneration, the remuneration paid in cash. " 11. in article 17: Add to sixth with the sentence as follows: "If the employee working relationship is ended before the end of the tax year, the employer shall, upon request, provide the employee notice of the physical person amounts paid termination date."; turn off 7.1; replace 7.2 part names and "seventh and 7.1" with the words "and the seventh". 12. To supplement the law with article 17.3 of the following wording: "17.3 article. Income from the qualifying holding Of a foreign company in a foreign company 1 this law considers foreign corporations, partnerships or other legal entities, foreign Foundation, trust or other legal entity who is, has been created or established by the laws in those low taxes and free countries or territories which are not quoted on the shares of a Member State of the European Union or the European economic area on the regulated market. 2. A legal entity within the meaning of this law is considered to be any person relating to the contract or a group of assets that have been transferred under the agreement to other persons. 3. It is considered that the person (resident) owns a significant interest in a foreign company that directly or indirectly owns at least 25 percent foreign share of the company's share capital, stock, shares, voting rights or by contract or otherwise has significant influence, or the right to participate in the profits of a foreign company (asset value growth). On the payer does not direct participation of foreign companies will not be considered as such participation, if any, in the interim between the taxpayer and the foreign company is a joint stock company whose shares are listed on the Member States of the European Union or the European economic area on the regulated market. 4. the payer (resident) in the amount of foreign participation in the company's share capital, voting rights, or other rights, the right to participate in the profits (or the increase in value of assets) distribution, the tax year of the last day. 5. the payer (resident) income subject to the foreign company profits (increase in value of assets) which is proportional to the payer (resident) to foreign participation in the company's share capital, voting or other rights which ensure significant influence or allow you to participate in profit (increase in value of assets). 6. in determining the taxable income of the (residents) of the essential participation of foreign companies, foreign firms take into account the profits determined in accordance with national laws and regulations. 7. the payer (resident) that tax year received the income referred to in this article, the tax year shall be added to annex the Declaration, in which the free-form indicating the following information: 1 a foreign company name), registration number (if company in accordance with the law to be recorded) and a legal address (if a company under the law to register) or address (if the company is not in compliance with the law must be recorded); 2 the extent of foreign participation) in the company's share capital, which it owns, directly or indirectly, on the last day of the tax year, or voting rights or other rights that provide significant impact or allow you to participate in the profits of a foreign company (asset value growth) distribution; 3) if it is not direct participation, intermediate between the payer and the — the foreign community. " 13. Replace article 18, first paragraph, the word "April" with the word "June". 14. Add to article 24 with 3.1 part as follows: "3.1 tax calculated on income from the participation of foreign material in the community, reduced by low taxes and free country or part of the tax paid in a territory that is proportional to the income from the foreign companies under this law will be applied to article 17.3 (resident) if the tax on the relevant country or territory has been certified by the relevant State or territory tax collection bodies approved documents , which displays the taxable income and the amount of the tax paid. " 15. Replace paragraph 10 of article 28, the words "April" with the word "June". 16. transitional provisions: replace paragraph 44 and the number of words "and" 2012. "with the figures and word" 2012, 2013 and 2014.. "; transitional provisions be supplemented with 45.1 points as follows: "45.1 this law of the transitional provisions provided for in paragraph 45 of the entry into force of the amendments is canceled."; turn off transitional 84; transitional provisions be supplemented by 93.94 and 95, paragraphs by the following: "93. Stock purchase rights to income if the stock purchase rights have been assigned to the 2012 31 December, but the stock purchase rights scheduled to launch by January 1, 2013, 9 of this Act applies to the first paragraph of article 43 and the eleventh part where implementation of these provisions in these conditions and the employer until March 1, 2013 has submitted to the State revenue service 11.11 of this law in the fourth paragraph of article This information. 94. From taxation individual income tax released in 2013 received amounts paid as State aid to agriculture or European Union support for agriculture and rural development. 95. By 2012 December 31 issued clear or non-cash advances that employee, Board Member, Council Member, owner, Member or members assigned commercial companies, cooperative societies, the European company, the European cooperative society, the European economic interest groupings, associations, foundations, companies, individual farmers or fishermen, farm organizations, individual merchants or natural persons registered in the State revenue service as an economic analyst, and for which no settlements made by 2013 30 June , 2013 July 1, apply article 8 of this law and 2.8 and 2.7 calculate individual income tax from gainful employment income equivalent income. For business travel or business trips, which are non-cash or cash advances issued to 31 December 2012, but from which the employee returns after that date, article 8 of this law shall apply to the General Part 2.7. " 17. To supplement the law with the informative reference to European Union directives as follows: "Informative reference to the European Union the directive included provisions in the law arising from the European Parliament and of the Council of 13 December 2011-2011/98/EU directive on a single application procedure for third-country nationals to a single residence and work permit in the territory of a Member State and on a common set of rights for third-country workers legally residing in a Member State. '. The law shall enter into force on January 1, 2013. The Parliament adopted the law in 2012 on November 15. The President a. Smith in Riga 2012 December 6.