Amendments To The Law "on Enterprise Income Tax"

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

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/223543

The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on enterprise income tax" to make the law "on enterprise income tax" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1995, 7, 24 no; 1996, nr. 9, 15; 1997, no. 8, 24; 1998, nr. 8, 21; 1999, no. 6, 24; 2000, no. 9; 2001, 1, 5, 24 no; 2003; 2005, 15 No 2. 24. no; in 2006, no 1; 2007, 3, 12, no. 24; 2009, 1, 15, no. 21; Latvian journal, 2009, 175, 200. no; 2010, 102, 131, no. 170) the amendments are as follows: 1. Article 1: express the nineteenth part of paragraph 3 as follows: "3) the countries of the European economic area residents 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, which is not a Member State of the European Union, which the country of residence is subject to taxation in the Republic of Latvia, the corporate income tax tax similar in substance, are not exempt from the tax if it is not possible to choose the tax exemption and on the basis of the agreement on the avoidance of double taxation concluded with a third country for the purposes of taxation is not considered a resident of a State which is not member of the European economic area. ';
to supplement the article with the twenty-seventh and twenty-eighth the following wording: "(27) the original long-term investment — investment in unused (new) fixed assets [in new production facilities and telecommunications technology and software installations, as well as buildings and structures which, in accordance with the laws and regulations that govern the classification of buildings, classified as traffic and communication buildings (structure classification code 124), industrial buildings and warehouses (structure classification code 125) and transport structures (structure classification code 21)] of eligible investment project If the assets used for the taxable person's business activity of this law article 17.2 eighth in certain priority sectors to be supported.
(28) the production of New technological equipment-not used (new) machines specific sequence of technological operations, to transform the piece (substance, material, product) characteristics, thus causing the value of the subject of the work, and the work of essential car accessories and extras that complement the work of technological operation of whole machine. The machines are working rigs (or a combination), which is an essential component of the all-wheel-drive izpildsistēm and management system. Technological equipment of trade within the meaning of this law are not technological equipment of production. "
2. in article 3: Add to eleventh and twelfth subparagraph following the words ' issued a statement "with the words" or their replacement by the fourteenth part of this article, the documents referred to in "and after the words" the said certified statement "with the words" or the substitution documents ";
to supplement the article with the thirteenth and fourteenth part as follows: "(13) If the interest or dividend payment for intellectual property at the time of paying costs of disposal has not been the country of residence of the recipient of income tax certificate issued by the administration or by the substitution of the fourteenth part of this article, the documents referred to in this article and in quarter 1, 3 or in paragraph 4, the specific exemption has been applied to the cost of the income at the moment, but the recipient of the income is considered that it is entitled to use it, then the overpaid tax amounts for the recovery of income recipients within a period of three years from the date of payment shall be submitted to the State revenue service income recipient's country of residence certificate issued by the tax administration or the aizvietojošo in the fourteenth part of the documents, which confirm that the cost of the income at the time the company was the beneficiary of income — all of this law, article 1, part 2 or the nineteenth paragraph 3 or article 19.1 part. After a decision on the repayment of excess tax, the State Revenue Service released in addition to the amount collected to the law "on taxes and duties" in the order and within the time limits. The application of this part of the income recipient's country of residence certificate issued by the tax administration or the substitution documents shall be valid only for the repayment of the excess tax withheld from income, which at the time cost they confirmed that the company was the beneficiary of income — all of this law, article 1, part 2 or the nineteenth paragraph 3 or article 19.1 part.
(14) where public interest or dividend-payment for intellectual property in the country of residence of the beneficiary of the tax administration does not issue a separate statement, confirming that the company complies with all this law, article 1, part 2 or the nineteenth paragraph 3 or article 19.1 part, then the fourth paragraph of this article 1, point 3 or 4, should exempt from the withholding tax is applicable on the basis of residence certificate by the national tax administration issued by this country and the agreement of the Republic of Latvia for the avoidance of double taxation, and to the public interest or dividend — payment for intellectual property of the recipient authorized representative certifying State revenue that the company — income recipient meets the rest of this law, article 1, part 2 or the nineteenth paragraph 3 or article 19.1 part. "
3. Supplement article 4 to 10 by the following: "(10) established higher education institutions which are not subject to this law, article 2 of the conditions of the second subparagraph, the application of this article, the taxable income of part 1.1, consisting of income from economic activity and with the revenue generating costs, not included in the State budget received funding, European Union funding and policy instruments with the realisation of this funding costs."
4. Supplement article 5 to the sixth and seventh paragraph as follows: "(6) to the expenditure that is not directly related to economic activity, not added to the vehicle (with the exception of passenger car a representative) the operating expenses which for months, the vehicle is paid company light vehicle tax, regardless of whether the vehicle is used exclusively for business. Months in which the vehicle is paid company light vehicle tax, vehicle fuel acquisition expenses 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.
(7) the expenditure that is not directly related to the economic activities of farmers or fishermen, not added to the farm, as well as regulations for the granting of aid laid down the necessary annual eligibility criteria for agricultural service cooperatives expenses related to passenger car (excluding the representative passenger car) operation. Passenger car fuel acquisition expenses to farmers or fishermen, as well as regulations for the granting of aid laid down the necessary annual eligibility criteria for agricultural service cooperative society 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. "
5. Supplement article 12 with the fifth and sixth the following: "(5) when a person associated with the company, associated company or foreign company, which is exempt from corporate income tax, or used in other law of the Republic of Latvia to the corporate tax reductions or exemptions, or related company to the tax form one of this law, in article 14.1, the group, in determining the taxable income It shall be increased according to the second subparagraph of this article, the company (tax payer), in determining the taxable income, it shall be reduced by the appropriate amount.
(6) the application of this article, the fifth, the taxable income may be reduced, provided the participant is a resident of Latvia or another Member State of the European Union resident, or a European economic area country resident, with which Latvia has concluded a Convention for the avoidance of double taxation and the prevention of fiscal evasion, if this Convention has entered into force, and the person together with the annual report was submitted by the State revenue service of the national tax administration certificate that taxable income is increased. "
6. turn off 1.3 of article 13.
7. Add to article 14.1 of the seventh part of paragraph 4, after the word "debt" with the words "on the last day of the tax period.
8. To supplement the law with 17.2 article as follows: "article 10.7. Tax rebate on eligible investment projects carried out in the framework of the initial long-term investment

(1) a taxable person has the right of eligible investment projects carried out in the framework of the initial long-term investment tax credit: apply 1) 25 percent of the total initial amount of long-term investments to 35 million lats;
2) 15 percent of the total amount of the original investment in the long-term part that exceeds 35 million lats.
(2) the tax credit applied to the tax period in which the completed investment projects to be supported.
(3) If a taxpayer during the tax period calculated tax is less than the estimated tax rebate, tax payer about tax rebates of unused part can be cut in the next tax periods calculated tax until the tax rebate is used in full, but not more than 16 in the next tax periods in chronological order.
(4) in this article, the tax credit is entitled to apply to a taxable person who satisfies all the conditions mentioned in this paragraph: 1) a taxable person eligible investment projects carried out in the framework of the original long-term investments with a total amount of more than 5 million lats;
2) total investment amount of the original long term is invested within three years from the date on which the Cabinet of Ministers has adopted a decision on the investment projects to be supported;
3) the taxable person carried out the initial long-term investments in one of the eighth part of this article, those eligible for priority sectors;
4) initial and long-term investment, ensure new activities or upgrading existing operations or expansion, which includes new products, existing operations, switching from one product to produce another type of production or products from one type of service to provide other types of services, or the provision of a general process of significant change;
5) real estate, which makes and uses its original investment in the long term, are the property of the taxable person or a taxable person has long-term lease rights (at least another 13 years after project start-up), and they are in the land. If real property is leased from the State or local government, long-term lease rights still must be at least 13 years after the commencement of the project;
6) is made in the aided investment project. The economic Ministry has evaluated the eligible investment project impact on the national economy, as well as whether this project will not lead to restrictions on competition and on the basis of this assessment, the Cabinet of Ministers has adopted a decision on the investment project to be supported.
(5) the person who applied the first part of this article, the specific tax credit or reduces the amount of tax the third part of this article in accordance with the procedure laid down in this law shall apply in article 13, first paragraph, and in paragraph 9, part 1.2 benefits and 18 and 21 in article tax rebates, as well as to the law "on taxation of free ports and special economic zones" established corporate income tax rebate.
(6) this article does not apply to the tax discount on taxable persons: 1) starting with the tax period in which the taxable person by the decision of the Court has been declared bankrupt, including the rehabilitation process is located, the legal protection process (also non-judicial remedies in the process), its economic activity is terminated or is being wound up;
2) starting with the tax period in which the taxpayer's capital has dropped more than half, and more than a quarter of the reduction of the issued share capital is reduced in the last 12 months prior to the submission of the project to the Ministry of the economy. This paragraph does not apply to merchants that meet the Commission's august 6, 2008, Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance) contained in annex 1 to the definition, if they are registered in less than three years;
3) that on the last day of the tax period is the tax arrears;
4) the covered recovery order in accordance with the decision of the European Commission, with which the national or European Union support is considered illegal and incompatible with the common market.
(7) the initial value in the long term only includes the acquisition or creation of part of the value that corresponds to their market price if transactions take place with affiliates or related parties of the company.
(8) in the priority sectors to be supported within the meaning of this article is the economic activities in the European Parliament and of the Council of 20 December 2006, Regulation (EC) No 1893/2006 establishing the NACE Rev. 2. statistical classification of economic activities, as well as amending Council Regulation (EEC) No 3037/90 and certain EC regulations on specific statistical domains (text with EEA relevance) (NACE): 1) food manufacturing (NACE C10) with the exception of fish, crustaceans and molluscs processing and curing (NACE C 10.2) and the production of milk products (NACE C 10.5);
2) beverage industry (NACE C11);
3) wood, wood and cork products, except furniture; straw and wicker manufacture of products (NACE C16);
4) chemical and chemical products (NACE C20), except for synthetic fibre production (NACE C 20.6);
5) pharmaceutical assay, and pharmaceutical manufacturing (NACE C21);
6) rubber and plastic products manufacturing (NACE C22);
7) metals (NACE C24), with the exception of the steel products set out in annex 4 of this law;
8) manufacture of fabricated metal products, except machinery and equipment (NACE C25);
9) computer, electronic and optical equipment manufacturing (NACE C26);
10) electrical equipment manufacturing (NACE C27);
11) not elsewhere classified equipment, machinery and work machine production (NACE C 28);
12) cars, trailers and semi-trailers manufacture (NACE C29);
13) other transport equipment (NACE C30), with the exception of the and boat construction (NACE C 30.11);
14) telecommunications (NACE J61);
15) software and related activities (NACE J62), with the exception of computer usage consulting (NACE J 62.02);
16) storage and transport and ancillary activities (NACE H52).
(9) buildings and structures that made the original long-term investment, remains the property of the taxpayer and are not transferred to other countries, as well as use it in economic activity not less than 10 taxation period, technological equipment and machinery — five tax period, starting with the tax period, during which the completed investment projects to be supported.
(10) if any of the initial investments include long-term assets are seized, placed in service to another person or is not used for economic activity in the priority sectors to be supported or is transferred to another country before the end of this period, the taxable person shall specify the initial and long-term investment value and tax for the previous tax period. Taxpayer during the tax period and in subsequent periods of taxation shall cease to be entitled to apply the first subparagraph of this article, the specific tax credit, as well as in accordance with the third paragraph of this article, to reduce the taxation period calculated tax on previous periods of taxation of unused tax credit are infringed the fourth paragraph of this article 5 conditions referred to in paragraph or long-term investments, which were invested in eligible investments under the project and that the total value of the acquisition or creation of 50% or more of the investment under the project the original long-term investment amounts is seized, placed in service to another person or are not used for economic activity in the priority sectors to be supported before the ninth part of this article at the end of this period.
(11) the tax rebates are applicable in accordance with the Commission on 6 august 2008, Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance).
(12) the taxable tax credit shall be entitled to not more than 10 "of the tax periods.
9. in article 20.1: replace the first paragraph, the words "in accordance with the Organization of the public good, or in another law within the European Union or European economic area Member State associations, foundations and religious organizations or institutions which have been granted the status of the organisation of the public good-like status in accordance with the relevant European Union or European economic area Member State laws" with the words "or by another Member State of the European Union or the European economic area country with which Latvia has concluded a Convention for the avoidance of double taxation and the prevention of fiscal evasion, if this Convention has entered into force, registered non-governmental organisation, which works on Latvian public benefit organizations in similar conditions in accordance with the status of a Member State of the European Union or the European economic area country laws ";
adding to the third paragraph with the sentence by the following:

"If the State Corporation, which carries out the delegated Ministry of culture national cultural features, the annual reporting period does not coincide with the calendar year, the Corporation said in a public statement of their donors, donor amounts and use of donations received during the tax period shall provide, within three months after the last day of the tax period.";
adding to the seventh paragraph by paragraph 3 by the following: "3) resident and permanent representation, to donate in a Member State of the European Union or the European economic area country a registered non-governmental organisation, together with the tax return for the taxation year is not submitted to the State revenue service documents that certify that: (a) the beneficiary is the donation) of one of the Member States of the European Union or the European economic area country resident, b) is the recipient of the donation public good organization comparable status in the country of residence (c) the recipient of the donation), works in the field of public good, providing significant benefits to the community or any part thereof, especially if it focused on charity, human rights and the protection of the rights of the individual, civil society development, education, science, culture and health promotion and disease prevention, sports sponsorship, the protection of the environment, the provision of assistance to disaster and emergency situations, the public, especially the needy and socially vulnerable groups of people, the social welfare training (d) at least 75 per cent), from paying the amounts spent on donated public good purposes. "
10. Add to article 25, under the fourth subparagraph by the following: "(4) micro-enterprise, the taxable person to pirmstaksācij 15 December of the year of the State revenue service has submitted a request for the status of micro taxable termination, start paying corporate income tax for the tax year in accordance with the requirements of this law."
11. Supplement article 27 with paragraph 10 by the following: ' 10) procedures shall be submitted and judged investment project application investment project assisted status. "
12. transitional provisions: turn off 87 points;
transitional provisions be supplemented with 98 and 99 of this.: 98. "this law, in article 17.2 the tax credit does not apply to taxable persons who, during the tax period continues to apply this law 17.1 article (the version which was in force up to 31 December 2005) a certain discount.
99. This law, the provisions of article 17.2 of the applicable eligible investment projects for which the Cabinet of Ministers has adopted a decision to 31 December 2013 and completed by 2016 December 31. "
13. To supplement the law with annex 4 of the following: the law "On enterprise income tax" annex 4 steel products which do not qualify for the production tax credit for eligible investment projects carried out in the framework of the initial long-term investment no PO box
The product code of the combined nomenclature pursuant to Council on 6 august 2001, Regulation (EC) no 2031/2001 amending Council 1987 23 July, regulations (EEC) No 2658/87 on the tariff and statistical nomenclature and on the common customs tariff 1. Annex 1. Cast iron, Ferro, 7201 2.7202 11 20 7202 11 80, 7202 99 10 3. Iron ore direct reduction products obtained and other porous iron products iron and 7203 4 alloy steel 7206 5. Iron or non-alloy steel semi-finished 7207 11 11 7207 11 14, 7207 11 16, 7207 12 10,,,,, 7207 20 15 7207 19 12 7207 19 80 7207 20 11, 7207 20 17, 7207 20 32, 7207 20 80 6.7207 20 52, of iron or non-alloy steel flat rolled products 7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 36 00, 7208 37 00, 7208 38 00 , 7208 39 00, 7208 40 00, 7208 51, 7208 54 00, 7208 52, 7208 53, 7209 15 00, 7208 90, 7209 16, 7209 17, 7209 18, 7209 25 00, 7209 26, 7209 90, 7210 11 00, 7209 28, 7209 27, 7210 12, 7210 20 00, 7210 30 00, 7210 41 00, 7210 49 00, 7210 50 00, 7210 61 00, 7210 69 00 , 7210 90, 7210 70, 7211 13 00, 7211 14 00, 7211 19 00, 7211 90, 7212 10, 7211 29 00, 7211 23, 7212 20 00, 7212 30 00, 7212 60 00 7.7212 40, 7212 50, of iron or non-alloy steel hot rolled bars loosely wound 7213 10 00, 7213 20 00, 7213 91 bundles, 7213 99 8. other iron or non-alloy steel rods 7214 20 00 7214 30 00, 7214 91, 7214 99,, 7215 90 00 9. Iron and non-alloy steel angles, shapes and sections 7216 10 00, 7216 21 00, 7216 22 00, 7216 31, 7216 32, 7216 33, 7216 40, 7216 50, 7216 99 00 10. Stainless steel 7218 10 00, 7218 91 10, 7218 91 80, 7218 99 11, 7218 99 20 11. Stainless steel flat-rolled products 7219 11 00 , 7219 12, 7219 13, 7219 14, 7219 21, 7219 22, 7219 23 00, 7219 24 00, 7219 31 00, 7219 32, 7219 33, 7219 34, 7219 35, 7219 90, 7220 11 00, 7220 12 00, 7220 20, 7220 90 12. Stainless steel rods, 7221, 7222 11 00, 7222 19, 7222 40 10 7222 30 97, 7222 40 90 13. Other alloy steel flat rolled products 7225 11 00 7225 19, 7225 30, 7225 40,, 7225 91 00, 7225 92 00, 7225 99 00, 7225 50, 7226 19, 7226 91 7226 11 00, 7226 20 00, 7226 92 00, 7226 99 14. Otherwise, alloy steel 7224 10, 7224 90 02, 7224 90 03 rods, 7224 90 05, 7224 90 07, 7224 90 14, 7224 90 31, 7224 90 38, 7227 10 00 , 7227 20 00, 7227 90, 7228 10 20, 7228 30 20, 7228 30 41 7228 20 10, 7228 20 91,, 7228 30 49, 7228 30 61, 7228 30 69, 7228 30 70, 7228 30 89, 7228 60, 7228 70, 7228 80 00 15. Piling 7301 10 00 16. Rails and sleepers, 7302 10 23 7302 10 21, 7302 10 29, 7302 10 40 7302 10 50, 7302 10 90, 7302 40 00,, 7302 90 00 17. Seamless tubes, pipes and hollow profiles 7303, 7304 18 00. Welded iron or steel tubes and pipes, of an external diameter exceeding 406.4 mm 7305 Law shall enter into force on January 1, 2011.
The Parliament adopted the law on 20 December 2010.
President Valdis Zatlers in Riga of 2010 December 30.