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/ta/id/242005

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. No.) the following amendments: 1. Turn off 3 the third subparagraph of article 16.
2. in article 9: turn off the first part of paragraph 5, the words "not exceeding the costs associated with the acquisition of it — in the order of the Cabinet of Ministers";
Add to the first part of paragraph 7, after the words "to be paid from the budget (budget appropriations intended) benefits" with the words "from other Member States of the European Union or the European economic area, the forecast benefits paid";
to supplement the first part with 34.1 points by the following: "income from public 341) needs the necessary disposal of immovable property lawfully seized of the property, if this income is invested in the functionally similar real property within 12 months of the society needs the necessary disposal of immovable property. If the real estate needs of society in need of disposal of immovable property law compensates with other real estate, disposal of such compensation in the form of real property acquired on the acquisition date shall be deemed the day when in the land was registered in accordance with the needs of society in need of disposal of immovable property law, the seized real property; ".
3. Add to article 10 in the seventh and eighth by the following: "7. If, in accordance with the conclusion of the life insurance contract (with storage) happens in part the cost of stocks, then after partial accrual costs made the payment of insurance premiums in the first subparagraph of paragraph 6 of the terms will not apply.
8. Where, in accordance with the life insurance contract (with the funds accrual) partial stock cost occurs before this law, article 8, paragraph 1, the fifth subparagraph laid down in the five-year period has elapsed, the addition of the seventh part of this article to the condition of the first part of paragraph 6 shall not apply to the conditions before the partial cost of the provision of insurance premiums payments. "
4. in article 11: to make the twelfth part of the first sentence the following wording: "If a person does not incur operating expenses or they are not essential, gaining income from the property [hiring or renting out real estate (also sold a rental right), handing over the case to the next apakšnomniek or subletting, renting of movable property or through a fee for the use of natural resources or use aprobežojum] or gaining income from the disposal of movable things that correspond to this article only 1.3 points for part 2. can not register in the State revenue service as economic operator. ";
to supplement the article with the seventeenth of the following: "17. Persons who keep accounting records in a simple entry system and have received State aid or support from the European Union for agriculture and rural development payment advances under the terms of the aid granted to compensate for expenses to a taxable person actually will occur during the administration of these payments and expenses for the financial year beginning July 1 of the tax year and ends June 30 of the year pēctaksācij the These amounts are entitled to include pēctaksācij's annual operating revenues. "
5. in article 11.3: make second subparagraph by the following: "2. If the debtor is a natural person and has fulfilled the first part of this article 1 and paragraph 2 defined conditions, the result will be reduced (if the result is negative, increase) the amount of the lost shows at the customer — natural persons — the completion of the bankruptcy proceeding (Court decision on the completion of bankruptcy procedures).";
to supplement the article with 2.1 and 2.2 the part as follows: "If a customer has registered 2.1 and have met the first part of this article 1 and paragraph 2 defined conditions, the result will be reduced (if the result is negative, the increase) in the amount of the debt for the loss that has been recognised in accordance with the creditor's claim, when a customer has completed the insolvency process and has accepted the Court ruling.
2.2 If the customer applies the redress process and the legal protection process of the action plan approved by the Court, is provided in proportion to the customer the principal sum, interest or penalty reduction, erasing or reducing the result (if the result is negative, the increase) for the reduced accordingly or deleted the amount of the debt. "
make the third subparagraph by the following: "3. If the taxpayer (individual enterprise) account contained money amounts when the account holder is completed the insolvency proceedings, the taxable person shall apply the law" On enterprise income tax "in article 9, second and third."
6.7.3 article: replace the third subparagraph, in the introductory part, the words "and both are satisfied" with the words "if any";
Supplement third with point 3 by the following: "3) seller of agricultural land — person meets one of the following criteria: a) is a person who performs agricultural activity and in compliance with this part of article 2 of the criteria laid down in point b) is a person who, before the cessation of agricultural activity, reaching retirement age, have been engaged in agricultural activities and responded to this article prior to the retirement of part 2 of the criteria set out in paragraph (c)) is a person that as the former land owner or his heirs in accordance with the law "On the privatization of land in rural areas" restore property rights to land, which by its purpose is agricultural land, d) is a person who is real estate, which is the purpose of agricultural land, obtained an inheritance from this point "a", "b" or "c" individuals, referred to in point e) is a person who is real estate, which is the purpose of agricultural land , received the donation contract from this point "a", "b", "c" or "d" referred to physical entities that are associated with the gift recipient of marriage or kinship up to the third degree of the civil code. ";
to supplement the article with the fourth paragraph by the following: "4. If disposes of real property, consisting of agricultural land and forest, the third paragraph of this article with respect to income from the alienation of immovable property apply in proportion to its acreage share that goal after use is agricultural land."
7. Supplement article 11.8 with fifth and sixth the following: "5. the fixed income taxpayers that tax year expanding its business operations with the provision of professional services, from the day when it started to provide professional services, operating income is determined in accordance with this law or in article 11 11.1. The payer may choose to pay a fixed income tax not less than five years.
6. Fixed income taxable in the tax year of natural persons employed, from the date on which it began to employ the employee to operating income determined in accordance with this law or in article 11 11.1. The payer may choose to pay a fixed income tax not earlier than five years ago. "
8. in article 7.4: Add to the second part of paragraph 7 as follows: "7) investment in gold and other precious metals, the business object in currency trading on the stock exchange or a stock exchange of the goods. ';
to complement the eleventh part of paragraph 4 after the words "the claims" with the words "or repurchase amount paid";
adding to the eleventh part of paragraph 5 with the following: "5) income from financial instruments in the management of the individual in accordance with the mandate of the investor (portfolio management services), formed as the positive difference between the value of all assets, which client-resident, has transferred the Portfolio Manager investment management during the term of the contract, and all of their assets, which client is removed from the investment portfolio for the duration of the contract or the expiry of the investment management agreement by measuring them after their surrender and withdrawal date market prices. "
to supplement the article with the thirteenth, fourteenth, fifteenth, sixteenth and seventeenth part as follows: "13. If a life insurance contract (with the funds accrual) claims at the end of the period (including income from this insurance contract) is paid in instalments, the eleventh part of this article, paragraph 4, income is determined when the first part of the calculation of claims, cutting down on the amount of tax payable on the total amount of claims paid.

14. If the thirteenth part of this article that life insurance (with funds accrual) claims (including income from this insurance contract) costs during the remainder of the increase in claims for additional profit, taxable income is determined when the next part of the calculation of claims, reducing the total remaining amount of the insurance indemnity in the amount of tax payable.
15. The taxable income from the insurance indemnity paid under a life insurance contract (with storage), which concluded in the interest of the insured's employer (or other policyholders: the legal entity), the insurance contract comes the deadline or breaking the contract early, distributed as follows: 1) income from insurance compensation corresponding to the employer (or other policy-legal persons) insurance premiums paid around;
2) income from insurance claims in excess of the employer (or other policy-legal persons) insurance premiums paid.
16. the eleventh part of this article, paragraph 4 of the taxable income from the life insurance contract concluded (with storage), if the conditions of the insurance contract provides for partial accrual of the cost of insurance for the duration of the contract, is defined as the positive difference between the amount of the current partial accrual costs and all of the above — the duration of the contract — partial cost savings made, and all the time in the insurance contract the insurance premium amount. The results of the previous part, reduces the cost of savings times calculated the taxable income from the insurance contract.
17. in accordance with the life insurance contract (with the funds accrual) carried out a partial accrual cost is the cost of a provision of part of an amount that is less than the amount of the repurchase, the termination of the contract of insurance, and the insurance contract remains in force. "
9. in article 15: to supplement article 3.2 part as follows: "this law article 11.9 3.2 15th part of the income referred to in paragraph 1 shall apply to income of paid employment in a specific rate of duty established for income generation, but this law article 15 of part 7.4 2. above income — interest rate 10.";
to complement the seventh subparagraph after the word "income" listed with the words and the number "as well as article 11 the twelfth part of the income of property".
10. Add to article 3.3 and 3.4 to 10.0 part as follows: "3.3 Notwithstanding subparagraphs 3.1 conditions of part, if a life insurance contract (with the funds accrual) claims at the end of the period (including income from this insurance contract) is paid in instalments, the income shall be considered as the day when the first part of the cost of claims.
3.4 3.3 of this article referred to in life insurance (with funds accrual) claims (including income from this insurance contract) costs during the remainder of the increase in claims on the additional profit (additional income from life insurance contracts with mobilized), making of this taxable income shall be considered as the date when the next part of the claims cost. "
11. in article 17: turn off the 10th paragraph 10 of part;
supplemented with the sentence following part 11.1: "If a person participating in a raffle or gambling, lotteries or gambling is paid winnings, which at one time or aggregating around gambling locations to a single visit exceeds 2000 lats, notice to the payer paid winnings to the State revenue service shall be submitted to the tax year following the February 1.";
Supplement 11.5 subparagraph following the words ' annual income from capital "with the words" but insurance company — if the cost is done with credit institutions via the money transfer and the calculated tax insurance company indicates money transfer in ".
12. To supplement the law with 17.2 article as follows: "article 10.7. Micro-enterprises provide labour provisioning services 1. staff hire (17.1 of this law the second part understood) assimilated manpower assurance services, if those services are provided by a taxable person of micro-enterprises.
2. provision of labour services within the meaning of this article understands the legal relationship to which the employer shall conclude an employment contract with the employee, to temporarily or permanently assigned to perform work for another person, and the right leadership. The provision of labour services for the purposes of this article are understood to include relationships within which there is at least one of the following conditions: 1 micro staff or owner) shall be subject to the specific agenda and orders that the good work carried out;
2) a person who performs the work, right down to the number and qualifications of personnel;
3) consideration for the calculation of micro-taxable depending on working time worked;
4) for whom the work, provides personnel with the most assets, tools and materials.
3. the application of this article in relation to the determination of taxable income from gainful employment, apply this law 17.1 article third and fourth part. "
13. Article 19: Supplement 5.3 part with the sentence the following wording: "to cover this law in article 7.4 ninth loss referred to, which were not covered during the taxation year, the taxable person may submit an annual capital gains income declaration of clarification, from 1 March of the year of the pēctaksācij.";
express the sixth paragraph 5 by the following: "5) overseas income, the nature and the amount of tax paid;".
14. in article 22: make the third paragraph as follows: "3. where the declared income of the payer or the State revenue service's accounts (statements) listed the payer income does not meet his expenses in the tax year, the State revenue service requires 3.1 of this article within the time limit set in part to submit additional Declaration (under the Cabinet of Ministers approved form) on income, earnings, money and other savings, possessions and their value in Exchange (hereinafter additional declaration).";
turn off 3.1 paragraph, first sentence, the words "and the tax year the income statement" and the words "or the annual income declaration '.
15. Article 24: make the seventh subparagraph by the following: "7. the duty shall be Latvian residents of paid employment income, if the following conditions are met: 1) salaried employment income from on the job duties in another Member State of the European Union or the European economic area country, or a country with which Latvia has concluded and the entry into force of the Convention for the avoidance of double taxation and the prevention of tax evasion;
2) gainful employment income earned in the foreign country is subject to liability to income tax or similar tax;
3) staff who are not paying the lessor leased personnel staff the lessee — Latvian resident or non-resident permanent representation of Latvia for this law, within the meaning of article 17.1. ";
to supplement the article with the 7.1 part as follows: "7.1 If the seventh part of this article that residents of Latvia's employer is a resident of Latvia, at a specific exemption applies if the employer before the employee begins work in a foreign country, shall be submitted to the State revenue service a written confirmation that the foreign country of the person in paid employment earned income is taxed by the foreign income tax. The approval of the employer, provide information about the country, which paid work, employed workers and the employment period. The employer shall inform the persons employed on such notification. '
16. Replace article 26, second paragraph, the words "the principal sum of the related increase" with the word "related".
17. in article 28: make 12. paragraph by the following: "12") to submit the Declaration to the State revenue service and increase tax year taxable income for previous tax years, eligible expenses include insurance premiums, for payments in the tax year in which up to this law, article 8, paragraph 1, the fifth subparagraph shall set out in the five year period is broken to attain a life assurance contract (with storage) or partial provision is made in accordance with the cost of the life insurance contract concluded (with funds accrual); ";
to supplement the article with points 13 and 14 by the following: ' 13) within five working days from the date of the initiation of the professional provision of services, to inform the State revenue service that fixed income tax payer has expanded its business operations with professional services, as well as whether the person operating income will be determined in accordance with this law or in article 11 11.1;

14) when you register to the law "on State social insurance" in the order and within a time limit in the State revenue service worker who acquired the status of a worker, to inform the State revenue service on whether the taxable fixed income, starting with the day of conclusion of the contract of work, operating income will be determined in accordance with this law or in article 11 11.1. "
18. in article 31.2: Express 1.1 part as follows: "1.1 If natural person (even if it is not possible to identify the specific installer) on the basis of the contract or the conclusion of the contract, without systematically making of income, which shows about relationships and about which to pay payroll tax, but the income is not shown in the accounting records of the employer or the cost of the fact it is not possible to establish whether it is not possible to identify the individual to whom recover from the employer penalties triple the amount of the tax for the amounts determined according to the State revenue service information available about a person if its count is greater than the legal minimum monthly wage, or the laws of a specific minimum wage level, if the remuneration is calculated as equal to, or less, or if its size cannot be determined. ";
Add to article 1.2 of the part as follows: "If this article 1.2 1.1 in the case referred to it is not possible to determine the period in which the employer has already employed the person, it is considered that a person is employed for three months. In this case, the State revenue service from the employer shall recover the penalty for three calendar months, part 1.1 of this article, including in the calendar month following that in which the irregularity was discovered, if the employer or the employee can prove that the employment relationship exists in a shorter time. "
19. transitional provisions: Express 52 as follows: "52. taxation Of individual income tax exempt according to the law on the support of the unemployed and jobs seekers unemployed status obtained for natural persons, the 2010, 2011 and 2012 2013 earnings obtained from the European Social Fund operational programme" human resources and employment ' or the State budget funds for active employment measures employment public agency qualified for scholarships or benefits. ";
turn off 83;
transitional provisions be supplemented with 84, 85, 86, 87 and 88 of this.: ' 84. If the taxable person until 31 December 2011 has been concluded and contracts or agreements concluded between the enterprise and the 2012 tax in accordance with article 17 of this law-tenth point 7 of part is withheld income, instead of paying the costs of the application of this law article 28, paragraph 6, concerning the conclusion of the contract of the company can not register economic activities up to 2012 December 31.
85. The taxable income from the existing life assurance contracts (with funds accrual) concluded by 2009 December 31 and provides for partial cost savings for the duration of the contract, shall be determined as follows: 1) the first part of the cost of the provision by 31 December 2009, determines the difference between the partial accrual costs and all the time in the insurance contract the insurance premium amount. If the resulting difference is negative, the taxable income is not formed and subsequent cost savings when the taxable income determined in accordance with subparagraph 2 of this paragraph. If the resulting difference is positive, it constitutes taxable income and subsequent partial accrual cost times the taxable income determined in accordance with paragraph 3 of this paragraph;
2) each subsequent partial accrual cost, determined by the difference between the amount of the current partial accrual costs and all of the above — by December 31, 2009. — part of the savings made in cost, and all the time in the insurance contract the insurance premium amount. Taxable income arises in the partial accrual cost time in this subparagraph that difference is positive. Subsequent partial accrual cost times the taxable income determined in accordance with paragraph 3 of this paragraph;
3) making every partial cost savings, taxable income is determined as the difference between the amount of the current partial accrual costs and all of the above — by December 31, 2009. — part of the savings made in cost, and all the time in the insurance contract the insurance premium amount, reducing the results of previous partial accrual cost times the fixed taxable income amount.
86. with regard to the debt amount of lost customers, in which insolvency proceedings handed down by 2010 31 October, this law shall apply to article 11.3 of the second and third part of the version which was in force until the date of entry into force of this law, article 11.3 of these second and third part of the amendments, which was intended to supplement article 11.3 of this law with the 2.1 and 2.2.
87. This law, article 9, first paragraph, 34.1 points and the 17th paragraph of article 11 shall apply on 1 January 2011.
88. a taxable person on micro-2012 tax year this law article 11 the information referred to in paragraph shall be entitled to submit up to 15 January of 2012. "
The law shall enter into force on January 1, 2012.
The law adopted by the Parliament in 2011 on 15 December.
The President a. Smith in 2011 December 29.