Amendments To The Law "about Taxes And Duties"

Original Language Title: Grozījumi likumā "Par nodokļiem un nodevām"

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Read the untranslated law here: https://www.vestnesis.lv/op/2015/251.9


The Saeima has adopted and the President issued the following law: amendments to the law "About taxes and duties" make law "About taxes and duties" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1995, nr. 7; 1996, no. 15; 1997, no. 24; 1998, 2, 18, 22, 24 no; 1999; 2000, no. 24, no. 11; 2001, 3, 8, 12 no, 2, 2002; 22 no, 2, 6; 2003. , 8, 15, 22 No.; 2004, no. 9; in 2005, 2., no. 11; 2006, 1, 9, 13, 20, 24 no; 2007, 3., 7., no. 12; 2008, 1., 6., no. 13; 2009, 2, 11, 13, 15, no; Latvian journal, 2009, 200, 205. no; 2010, 91, 101, 131, 151, 157.., 178, 183, 206. no; 2011, 68, 80, 85, 169. no; 2012, 24, 50, 56, 109, 157, 186, 199, no. 203; 2013, 61, 92, 187, 194, 232. no; 2014, 6, 51, 119, 204, 189, 220, 214,. 257. no; 2015, 29, 68, 118, 190, 208.230, 245, 248, no.) the following amendments: 1. To supplement the law with such chapter XII: "chapter XII the automatic exchange of information about financial accounts article 63. Information on the automatic exchange of financial accounts (1) the automatic exchange of information on the financial accounts provided for in this chapter is information on the reporting of financial accounts under regular service to the country or territory concerned to the competent authority without a separate request in accordance with the procedure laid down in this chapter. (2) the financial institution in accordance with the procedure laid down in this chapter identify for the financial reporting accounts and 100 of this law provides in the first subparagraph of article information (hereinafter in this chapter: a message) to the State revenue service. (3) the State revenue service is the competent national regulatory authority that ensures the automatic exchange of information about financial accounts in accordance with the procedure laid down in this chapter. 64. article. A participating State, the Cabinet of Ministers determines the automatic exchange of information on the financial accounts of the participating countries and territories (hereinafter in this chapter — participating). It shall include: 1) any other Member of the European Union; 2) any other State or territory, with which the Republic of Latvia or in the European Union has concluded the agreement which provided for in article 100 of this law referred to in the first subparagraph shall exchange information automatically. Article 65. The meaning of this chapter, Turētājiestād turētājiestād is any legal entity that holds the financial assets clients, if such action constitutes the essential part of the economic activities. Considers that the holding of financial assets clients are legal arrangement is an essential part of economic activity, a legal arrangement, if revenue relating to the holding of financial assets and related financial services is at least 20 percent of the legal arrangement in the shorter of the following revenue: 1) the period of three years ending on 31 December (or the last day of the reporting period, which is not a calendar year) before the year in which it is determined If a legal entity is considered turētājiestād; 2) legal arrangement during the period of its existence, or during a period in which the legal structure has a license for the provision of investment services. 66. article. Deposit institution within the meaning of this chapter, the authority any deposit is a legal structure that attracts deposits and other refundable funds through credit institutions, credit unions, payment institutions, electronic money institutions or similar economic activity. Article 67. Financial assets within the meaning of this chapter, financial assets are securities (including shares or shares of a corporation, a partnership, or interests or interests in real property held or widely publicly traded partnership or trust, in bills, bonds, notes or other debt receipts), part of the partnership, the participation of the trade, swaps (including interest rate swaps, currency swaps, swaps, the base interest rate limits maximum contracts interest rate contracts, the minimum limit values product swaps, equity swaps, equity index swaps and similar contracts), contracts of insurance, or annuities contracts or any participation (including traded on a regulated market and is not traded on a regulated market in the futures or options contracts) securities, partnership, participation of trade contracts, swap agreements, contracts of insurance, or annuities contracts, except for the parādfinansējum of non-direct participation in real estate. 68. article. The investment authority (1) for the purposes of this chapter, the investment authority has any legal structure: 1) that economic activity is mainly associated with one or more of the following activities or business of or on behalf of the client: a) the trading with money market instruments (such as cheques, bills, certificates of deposit, derivative instruments), foreign exchange, foreign exchange rate, interest rate and index instruments transferable securities on a regulated market or trading of futures contracts individual investor, b) or joint financial asset management on the basis of the authority of the investors, c) other financial assets or cash-management, administration, or in the name of or on behalf of the client; 2) which receipts are mainly related to financial assets-, re-, or trade if this legal structure is managed by a different legal structure, which is a deposit institution, turētājiestād, a specialized insurance company or investment institution, referred to in the first subparagraph of paragraph 1. (2) the first subparagraph of this article believes that the application of the legal arrangement of the economic activity is mainly associated with one or more of the first paragraph of this article referred to in paragraph 1, the activities or the legal arrangement revenue is primarily related to financial assets-, re-, or trade the first part referred to in paragraph 1, if the legal arrangement revenue associated with relevant activities at least 50 percent of the legal arrangement in the shorter of the following revenue: 1) the period of three years ending on December 31 of a year ago, which has made this law, article 65, paragraph 1, of the determination; 2) legal arrangement during the period of its existence. (3) on the contribution of the institution is not considered a legal structure that is the active non-financial legal structure corresponding to 86 this law, the first paragraph of article 4, 5, 6 or 7 of the criteria specified in paragraph. Article 69. A specialized insurance company within the meaning of this chapter, a specialized insurance company is an insurance company (or the insurance holding company), which conclude insurance contracts with mobilized funds or annuities contract or payment obligations under such contracts. 70. article. Financial institution within the meaning of this chapter, the financial institution is the turētājiestād deposit, the authority, institution or a specialized investment insurance company. 71. article. Financial institutions that report to (1) the obligations laid down in this chapter for information on the acquisition and processing of accounts, as well as for the provision of the report refers to: 1) any financial institution that is a resident of the Republic of Latvia, except those financial institutions branches located outside the Republic of Latvia; 2) any financial institution that is not resident in the Republic of Latvia, the affiliate, if the branch is located in the Republic of Latvia. (2) the obligations laid down in this chapter for information on the acquisition and processing of accounts, as well as of the reporting does not apply to this law referred to in article 81 of the financial institutions and legal structure. 72. article. Government Office for the purposes of this chapter, the authority of the Government are: 1) the Republic of Latvia or other national public bodies, including the national territorial formations (such as the different levels of local government, Federal formations, parish, city, County, State, province, County) or the Republic of Latvia or other national territorial formations (autonomous) created by the agency or institution; 2) of the Republic of Latvia or another country closely related person and controlled institution. 73. article. The Republic of Latvia or any other State closely related person

(1) for the purposes of this chapter, the Republic of Latvia or another country closely linked person is any person, institution, body, agency, Bureau, agency, Fund or other institution that forms the Republic of Latvia or other government authority, subject to the condition that the revenue accruing to the person concerned for the exercise of public power, is subject to these institutions, or in other accounts of the Republic of Latvia or any other State accounts and no private person do not benefit from that income. For closely related persons shall not be deemed the natural person who is a national leader, a public official or Government agent, if it acts in their private or personal interests. (2) an individual is deemed to benefit from government bodies, where such income individuals within the Government's aid programme for the target audience and the support programme may be implemented in the general welfare of the public for the purpose of promoting or is related to a Government function. Despite the above, it is considered that the individual benefits from government bodies, if such income is income from a government body to carry out commercial activities, such as for the activity of the credit institution, when individuals are provided to financial services. 74. article. The Republic of Latvia or any other State-controlled institution within the meaning of this chapter, the Republic of Latvia or any other State-controlled institution is an institution which, after their form is separated from the Republic of Latvia or any other State, or which otherwise constitutes a separate legal person, provided that: 1) institution wholly owned one or more government agencies (or has created a government body), which is fully controlled by this institution, either directly , or to one or more control bodies; 2 the net income is the institution) to be charged to the account or one or more of the accounts of the institutions and of the Government that no individual may benefit from these revenues; 3 after the liquidation of the Organization's assets) are passed to one or more of the Government authorities. 75. article. International organisations (1) for the purposes of this chapter considers the Organization of international organisations which meet all the following criteria: 1) it shall consist of countries or their Governments; 2) it is in force the agreement on the headquarters being in the Republic of Latvia; 3) of its income individuals do not benefit. (2) an international organization within the meaning of this chapter, be considered as an international organisation, institution or international organization wholly owned by the Agency. 76. article. Broad participation in the pension fund within the meaning of this chapter, the wide participation in the Pension Fund is a fund established to provide pension capital costs for retirement age, disability, or death, or any combination of them beneficiaries who are or were employees (or employees of such specified person) as reimbursement for the services provided or performed, provided that: 1) has no fund the cost of the recipient who has the rights to more than 5 percent of the Fund's assets; 2) Fund is subject to the national laws and regulations and provide information to the tax administration authorities; 3) Foundation will meet at least one of the following requirements: (a) the own funds of the pension) plan status does not generally apply to tax on investment income or deferred payment of duties or reduce the tax rate, b) at least 50 per cent of its total contributions (with the exception of transfers from other assets this article or this law, or 77.78. plans or referred to in article 96 of this law, the first paragraph of article referred to in paragraph 1 the pension accounts) funds received from the sponsoring employers the cost of funds, c) or removal from the Fund shall be permissible only in cases arising in connection with the retirement, disability or death (except moved to other costs in this article or this law, or 77.78. retirement account referred to in article 1 of this law or in article 96, first paragraph, referred to in paragraph 1 the pension accounts), or if are applied sanctions for disbursement or withdrawal taken before the case, d) workers ' contributions (except for certain additional contributions allowed) in the Fund are limited by the worker's labour income or Cabinet set the proper account verification procedures as a result of the application of the calculation of the annual total may not exceed the amount that the European Central bank published the euro reference rate is equivalent to the euro and corresponds to USD 50 000. Article 77. Limited participation in the pension fund within the meaning of this chapter limited participation in the Pension Fund is a fund established to provide pension capital costs for retirement age, disability or death beneficiaries who are or were employees (or employees of such specified person) as reimbursement for the services provided or performed, provided that: 1) Fund has less than 50 members; 2) the Fund is financed by one or more employers that are not investing or passive non-financial legal structure; 3) worker's and employer's contributions to the Fund (excluding asset transfers from this law, article 96, first paragraph, referred to in paragraph 1 the pension accounts) is limited to the employee's job income (including salaries); 4) has its participants tax resident in the country concerned, in which the Fund is established, is not eligible to hold more than 20 percent of the Fund's assets; 5) Fund is subject to national laws and regulations and provide information to the tax administration authorities. 78. article. Government authorities, international organizations or the central bank of the occupational pension fund within the meaning of this chapter, government authorities, international organizations or the central bank of the occupational pension fund is a fund established by the Government, international organization, or the central bank, to ensure pension capital costs for retirement age, disability or death beneficiaries who are or were employees (or employees of such specified person) or not or was not the workers If the benefits provided by such beneficiaries or participants, is an interest for individual services, which provides for the institution of Government, international organization, or the central bank. Article 79. Qualified credit card issuers (1) for the purposes of This chapter, the qualified credit card issuer is a financial institution that meets all the following requirements: 1) financial institution meets the financial institutions status only because this authority only in the context of its issued credit cards accepted from the customer deposits, which exceeded credit card debit balance (debt) amount and not refunded an overpayment to the customer; 2) financial institutions implement measures and procedures to prevent the customer makes an overpayment in excess of the amount that the European Central bank's euro reference rate published is equivalent in euro and USD 50 000, or meet in order to ensure that any client overpayment in excess of that amount, the customer shall be refunded within 60 days. (2) both the first paragraph of this article shall apply in the cases specified by the Cabinet of Ministers account due diligence procedures that apply to the account closing balance or value. For this purpose the client overpayment shall not apply to the account closing balances the contested payment, but it includes the account closing balance resulting from the return of the goods. 80. article. Released collective investment instruments (1) for the purposes of this section exempt collective investment instruments is investment, which is a regulated entity as collective investment instruments, provided that all the instruments of collective investment in parts there such natural persons or organizations, or they are kept by the individual or organization, other than those for which the report, excluding the liabilities of non-financial organizations, where one or more of the true beneficiaries are recognised as individuals on which to report. (2) the investment authority, which are regulated as collective investment instruments for collective investment instruments exempted under this article is considered, even if it is issued in the form of a physical bearer shares, provided that: 1) collective investment instruments by 31 December 2015 is not provided or not issued physical bearer form; 2) in the case of collective investment in repurchase instrument all these shares written down; 3) collective investment instruments undergo appropriate testing procedures and provide any information required in connection with such shares, if such shares are given for deletion, or other type of repurchase; 4) collective investment instruments to implement appropriate policies and procedures to ensure that such shares as soon as possible and, in any event, before 1 January 2018 is deleted or removed from circulation. 81. article. Exception financial institutions

The provisions referred to in this chapter for information about accounts, processing and Exchange does not apply to the following financial institutions and legal formations: 1) Government authority, an international organisation or the central bank, except payment information that occurs as a result of the obligations arising from the insurance company, specialized turētājiestād or deposit authority specific to the business; 2 wide participation) Pension Fund, limited participation in the Pension Fund, the qualified credit card issuers, government authorities, international organizations or the central bank of the occupational pension fund; 3) private pension fund for individual retirement accounts that are monitored according to the law "on private pension funds '; 4) occupational pension scheme funds Manager that works according to the laws of the State funded pension; 5) exempt investment adviser and the investment manager in connection with the exempt collective investment instruments; 6) trust, as far as our authorized person is a financial institution that provides reports for all trust accounts recognised as accounts that report; 7) licensed investment services provider, as far as the report on the accounts of other financial institutions in relation to its existing holdings for reporting accounts that are kept: (a)), according to the investment management company established the investment fund law and features, b) according to the alternative investment fund manager of established law and managed the alternative investment funds and resources, (c) a person) cash and financial assets receiving the investment services and investment in additional services. Article 82. The person in the country concerned (1) for the purposes of this chapter, the State party concerned are: 1) the physical person or legal entity that is a resident of any of the participating countries, in accordance with the tax legislation; 2) such death heritage (heritage mass) which has been resident in the country concerned in accordance with the national legislation in the field of taxation. (2) for the purposes of the application of this chapter, the legal entity as a partnership, limited liability partnership, or a similar legal arrangement, which duties does not have a place of residence, be deemed residents of the country in which the legal structure of the actual control. 83. article. The real beneficiary within the meaning of this chapter, the term "actual beneficiary" is used in the crime of money laundering and terrorist financing Prevention Act. 84. article. Legal structure and associated legal structure (1) for the purposes of this chapter, the legal structure is a legal person or a similar establishment, including a corporation, partnership, Association, Foundation, trust or Fund. (2) for the purposes of this chapter, related legal formations is a legal structure that is associated with another legal entity in one of the following ways: 1) one legal entity controlled by another legal entity; 2) both legal foundations controlled jointly by the same person; 3) the two legal formations is this law, the first paragraph of article 68 of the contribution referred to in paragraph 2, the institutions that are managed together, and such a common governing body supports the Cabinet defined the proper account verification procedures. (3) referred to in the second paragraph of article control means direct or direct ownership of at least 50 percent of the legal arrangement balsstiesīgaj shares (investment shares) or equity (total contribution). 85. article. Non-financial legal structure within the meaning of this section without financial legal structure means any legal entity that is not turētājiestād, deposit, contribution or a specialized insurance company. 86. article. Active non-financial legal structure

(1) for the purposes of this chapter, active non-financial legal structure is any non-financial legal structure (with legal personality or not), which meets at least one of the following criteria: 1) not less than 50 percent of the legal arrangement of financial revenue in the preceding calendar year, or other appropriate reporting period is referred to in the second subparagraph of article liabilities revenue and less than 50 percent of the legal arrangement of non-financial assets held in the previous calendar year, or other appropriate reporting period is active that are kept in this article referred to in the second subparagraph of passive income; 2) non-financial legal arrangement shares are regularly traded on an established securities market or non-financial legal structure is a legal arrangement related to the legal entity whose shares are traded on an established securities market; 3) non-financial legal structure is a government body, an international organisation, the central bank or the legal entity that owns one of these bodies; 4) non-financial legal arrangement transaction is associated with one or more associated with the formation of the company holding shares issued (fully or partially), which makes the sale or other commercial activities that are not financial institutions, as well as financing the operation and provision of other services for the following related companies. The legal entity cannot be considered as non-financial assets of legal entity, if it works (or yourself as the declared) as investment funds, such as private equity funds, venture capital funds, the Fund, which carries out investment business via borrowing takes money, or investment vehicle, which aims to buy or finance companies and thus to acquire a holding in these companies, keeping the capital assets for the purpose of investing; 5) non-financial legal structure still does not perform well in advance and has not carried out the economic activity, but it makes capital investments in assets in order to carry out an economic activity, which are not financial institutions, economic activity, provided that the non-financial legal structure does not meet this exception, if ever since the original creation date is a period of at least 24 months; 6) non-financial legal structure had no financial institution in the last five years and is located in the legal arrangement of the liquidation or reorganization of the assets of the process in order to continue or to resume the economic activities that are not financial institutions, the economic activity; 7) non-financial legal structure made primarily financing and hedging transactions with the related legal formations that are not financial institutions, or such a legal entity and does not provide financial or hedging services organization, which is not a legal entity, provided that the legal structure of the group is mainly involved in economic activities that are not financial institutions, the economic activity; 8) non-financial legal structure meets all the following requirements: (a) it is created and run) exclusively with religion, charity, science, arts, culture, sport or education-related purposes or are created and operate in their own country or the country of residence and the other is a professional organisation, business, Chamber of Commerce, organisation of work, agricultural or horticultural organizations, civil Union or organisation that work only in the company of common prosperity , b) it is exempt from income tax in its participating State or in another State of residence for tax it, c) are not shareholders or members, who should gain ownership or interests in relation to its income or assets (d)), in accordance with the non-financial legal arrangement participating State or country of residence of the applicable laws or legal arrangement of the financial instruments of incorporation of non-financial legal arrangement income or assets may not be distributed or used for the benefit of the natural or legal person in formation that is not a charity, if such division or use is not associated with non-financial legal arrangement carried out charitable activities, or to use when making the payment of adequate compensation for services received or payment that is non-financial legal arrangement purchased property the fair market value (e) non-financial) in accordance with the legal structure of the State of registration (which is participating) or the legal structure of the State of residence of the tax law applicable to the non-financial or legal arrangement of formation documents This non-financial legal arrangement in the case of liquidation or reorganization all the legal arrangement shall be deposited with the Government actively authority or other non-profit legal structure. (2) for the purposes of this chapter on non-financial legal arrangement of passive revenue considers the revenue share, consisting of: 1) dividends; 2) interest payable and similar charges; 3) rentals, rentals and royalties payments (excluding rentals, rental fees and royalty payments in the legal arrangement within the main business); 4) revenue from annuities contracts; 5) revenue, which is made in the disposal of financial assets transactions that generated these parts 1, 2, 3 or 4, the revenue referred to in paragraph [excluding revenues that are made with the broker (dealer) operating result]; 6) revenue that is being made in transactions (including forward transactions, transactions with options and similar transactions) for financial assets [excluding revenues that are made with the broker (dealer) operating result]; 7) revenue from exchange transactions [excluding revenues that are made with the broker (dealer) operating result]; 8) swap [except that it has a broker (dealer) operating result]; 9) amounts that are gained from insurance contracts with mobilized; 10) other revenue, which by their nature are comparable in this part 1., 2., 3., 4., 5., 6., 7., 8., or revenue referred to in paragraph 9. 87. article. A passive non-financial legal structure within the meaning of This chapter, the liability of non-financial legal structure are: 1) the non-financial legal structure (with legal personality or not) that does not match the active non-financial legal arrangement features; 2) 68 of this law. the first paragraph of article 6, paragraph 2 of the investment authority, who is not involved in the country's financial institutions. 88. article. The person, which must submit a report for the purposes of this chapter, the person must provide a report, of any participating country a person who is not: 1) a corporation whose shares are regularly traded on one or more regulated markets in financial instruments, or of a corporation related to it; 2) Government institution; 3) International Organization; 4) central bank; 5) financial institution. Article 89. Reporting account subject to the meaning of this chapter on the reporting account subject to recognised financial account whose holder is one of the following persons: 1) one or more persons, on which the report; 2) non-financial liabilities legal structure with one or more of the true beneficiaries, which according accounts provided for in this chapter the proper checking procedure execution are identifiable as the parties report. Article 90. Financial accounts and their breakdown, depending on the assets in the account

(1) for the purposes of this chapter the financial account are financial institutions maintain accounts that are: 1) the deposit account that is any komerckont, checking account, the payment account, savings account, term account, cooperative credit account or account that confirms the certificate of deposit, investment certificate of cooperative credit certificate, display a certificate or other similar instrument and which is maintained by a financial institution, subject to normal bank (credit) or similar economic activity. Deposit account also includes the amount the insurance company in accordance with guaranteed investment contracts, or similar agreements held to paid or credited by this amount of interest due; 2) financial instruments account, which is the account (other than an insurance or annuities contract) that for the good of the client is held in one or more financial assets; 3) in the case of investment authority, any shares in the capital of a financial institution or parādkapitāl, excluding interests in the capital or investment institutions in parādkapitāl, which is the investment authority only because it offers the customer investment advice or management services in connection with the customer's financial assets-management or administration, who on behalf of the client is invested in other financial institution; 4) in relation to a financial institution that is not referred to in paragraph 3 of this part, any shares in the capital of the institution or parādkapitāl, where participation is established so as to avoid providing information under this law, the first paragraph of article 100; 5) with a financial institution, concluded insurance contracts with mobilized funds and annuities contracts, with the exception of natural persons, the cost of immediate annuities concluded contracts which are not linked to the market, the Treaty does not provide for compensation of transfer rights to other parties and under which contributions are made from the account for payment of pension or disability payments. (2) financial account for the application of this chapter shall not be considered to account for that, according to article 96 of this Act was declared off. 91. article. Part of the capital participation (1) this law, article 90 of the first subparagraph of paragraph 3 and 4 sense of participation in the share capital of shares also recognise profit. (2) in respect of the trust, which is a financial institution, believes that part of the capital participation in any person who is considered a founding member or beneficiary in connection with all or part of the trust, or another individual who implemented the final actual trust control. The person on which the report shall be considered in relation to beneficiaries of the trust, if such person has the right to directly or indirectly (for example, with the nominal holders of financial assets) to get the required profit or that person may directly or indirectly receive discretionary (at discretion) profit from the trust. 92. article. Annuities contract within the meaning of this chapter of the Treaty annuities are: 1) the lifetime pension insurance contract, under which the insurance reimbursement is provided for a period that is determined, in whole or in part, taking into account one or more of the individual life expectancy; 2) regarded as the annuities contract in accordance with its national laws and regulations or existing practices in which the contract is concluded, and under which the insurance indemnity is paid in a certain number of years. 93. article. Insurance contracts with mobilized funds for the purposes of this chapter, the insurance contract with the accumulation of assets is a life assurance contract (excluding reinsurance contracts) that has monetary value. 94. article. Value of money (1) for the purposes of this chapter the cash value is the amount that a policyholder is entitled to receive in the event of termination of the contract or the insured, the insurance contract expiration (accumulated capital) (without deducting charges for the termination of the contract or loan relating to the insurance contract), or the amount that a person can borrow under or in connection with the provisions of the Treaty, depending on which amount is larger. (2) Notwithstanding the first paragraph of this article shall not include the value of the amount payable under the contract of insurance: 1) only on the basis of the person's death, for which it is in effect a life assurance contract; 2) as the person claims injury or illness or other insurance claims, which is compensated for losses incurred due to an accident; 3) as prepaid insurance premium refund (not taking account of the deduction of insurance premiums, regardless of whether they are appropriate or not) under contracts of insurance (other than insurance contracts with mobilized funds or annuities contract) the cancellation or termination or reduction of probability of insured risk insurance for the duration of the contract or in cases when insurance premiums are corrected entry error or similar error; 4) as insurance for the duration of the contract amounts payable (bonuses), excluding amounts (bonuses) the expiry date of the agreement, under which the insurance contract during the period of insurance, the cost of reimbursement provided for in accordance with paragraph 2 of this part; 5) as the above deposit insurance premiums, payments in respect of the insurance contract, for which the insurance premiums to be paid periodically, if the insurance premium does not exceed the amount of the next annual period of insurance premiums to be paid. Article 95. Account holder (1) for the purposes of this chapter, the account holder is: 1) concerning insurance contracts with mobilized funds or annuities contracts — a person who is entitled to receive the accrued funds or change the beneficiary to the agreement. If no one can get the accrued funds or change the beneficiary to the agreement, the account holder shall mean any person specified in the contract as the owner and any person who is entitled to receive payment in accordance with the provisions of the Treaty. Insurance contracts with mobilized funds or annuities at the end of the agreement of the account holder is the person who is entitled to receive payment in accordance with the provisions of the Treaty; 2) in the case of other accounts — the person that the financial institution in which the bank account, indicated or identified as financial account holder. (2) a Person, other than a financial institution, keeping the financial accounts of other persons (name, task) as agent, holder, nominal account holder, signer, investment consultant or broker, is not considered the account holder; the account holder is the person whose right (name, task) is held in the account. Article 96. Turn off account

(1) for the purposes of this chapter the suspended account is any of the following accounts: 1) a pension account, which meet all the following requirements: (a) the account is subject to the regulation) as the pension plan member's personal account or is part of a registered or regulated pension plan cost (including retirement, disability or death), (b)) are applicable to the account tax incentives (that is, contributions to the account, which would otherwise be subject to taxation are deductible or excluded from the revenue account holder or they are taxed at a reduced rate, or from an account of investment income gained from the deferred tax payments or reduce the tax rate), (c)) on the account each year to provide information to the tax administration authorities by the legislation order, d) withdrawals are provided special conditions: retirement age, disability, or death, or to apply sanctions for withdrawals before the onset of conditions the annual contribution, e), the maximum amount applying the Cabinet defined due diligence procedures, exceed the amounts set by the European Central bank's euro reference rate published is equivalent in euro and USD 50 000, or meet the maximum payment on account, applying the Cabinet defined due diligence procedures, lifetime does not exceed an amount which the European Central bank's euro reference rate published is equivalent to USD 1 000 000 euro and correspond; 2) financial account that corresponds to this part of point 1 "e" claims, paragraph will match them, even where such financial accounts can transfer assets or cash amount from one or more financial accounts that conform to this part 1 or 3 point requirements, or from one or more of the pension funds that comply with this law, and 77.76.78; 3) account that meets all the following requirements: (a) Finance) account regulatory laws are regulated as investment vehicles whose purpose is not the provision of pensions, and it regularly on a regulated market or the financial instruments account are regulated as a savings mechanism, which is not the purpose of the pension accruals, b) account is applicable to the tax incentives (that is, contributions to the account, which would otherwise be subject to taxation are deductible or turned off from the account holder or the taxable revenue at a reduced rate or from the account of investment income gained from the deferred tax payments or a reduced rate of duty), c) withdrawals are provided special conditions related to the investment account or savings account (for example, education or the provision of medical benefits), or apply sanctions for withdrawals before the following criteria, d) the annual contribution of the maximum amount does not exceed the amount that the European Central bank's euro reference rate published is equivalent in euro and USD 50 000 match application of Cabinet established due diligence procedures; 4) financial accounts conforming to paragraph 3 of this part "d" section, will match them, even where such financial account may transfer assets or cash amount from one or more financial accounts that conform to this part 1 or 3 point requirements, or from one or more of the pension funds that comply with this law, and 77.76.78; 5) life insurance contract, covering the period ending before the insured person reaches 90 years of age, provided that the agreement meets all the following requirements: (a) periodic premiums) that decreases with time, are payable at least annually until the agreement is in effect, or until the insured reaches 90 years of age, depending on which time period is shorter, b) there is no value for the contract, which any person may receive without termination of contract (removal of accumulated funds, loan or otherwise), c) amount (except in the event of the death of the costs), payable, cancelling or terminating the contract, may not exceed the total of the premiums paid under the contract, after deducting the applicable risk and Commission payments for the duration of the contract, and any other amounts paid before the cancellation or termination of the contract, d) insurance compensation right is not transferred to another person for gainful purposes; 6) account that there only the deceased's legacy, if this account is to be found in the documentation of the deceased's will or a copy of the death certificate; 7) account, which is maintained in connection with a judicial decision or judgement; 8) account that is real or immovable property sales, Exchange, hiring out or leasing transactions, provided that the account meets all the following requirements: (a) the account is counted only) in advance, deposit or deposit an amount to guarantee the implementation of the commitments, which is directly related to the transaction, or similar payment or account are credited to the funds related to the sale of property Exchange, hiring out, or letting a, b) account is maintained and used only for the purpose to guarantee the buyer's obligation to pay the purchase price of the property, the seller contingent liability or a tenant or lessee's obligation to pay the rental for the leased property or damages in accordance with the terms of the deal, c) account funds, including those obtained from the income is payable to, or otherwise distributed to a customer, vendor, landlord or tenant (including interest to comply with the obligations of such persons), property selling, exchanging or transferring, even if the deal is terminated, d) account is the financial collateral account or similar account that are maintained in connection with a sale or a financial asset exchange, e) account is not associated with the accounts referred to in paragraph 11; 9) account, which is maintained in connection with the financial institution that serves the real estate loan obligation secured to reserve part of the payment to ensure only the real estate tax or insurance pay later; 10) account, which is established in relation to financial institutions the obligation to ensure only payment of taxes later; 11) deposit account that meets all the following requirements: (a) the account is counted only) the amount of the credit card or other debit balance of renewable credit line (client indebtedness) deletion, and overpayment is refunded the customer immediately, b) financial institutions implement measures and procedures to prevent overpayments will be credited in the account which exceeds the amount that the European Central bank's euro reference rate published is equivalent in euro and USD 50 000 match or to ensure that an overpayment in excess of the abovementioned amount, the customer will be refunded within 60 days, that is the amount calculated by applying to the Cabinet of Ministers established the proper account verification procedures. For this purpose the overpayment amount is not counted in the contested payment amounts, but are counted in compensation for the return of goods; 12) pension plan member's individual account that is regulated according to the law "on private pension funds '; 13) State funded pension scheme member account that is regulated under the State funded pension law. (2) the financial institution is entitled to declare the account off iepriekšpastāvējuš physical personal financial account (except annuities contracts) that meet all of the following characteristics: 1) in the annual account closing balance does not exceed the amount that the European Central bank published the euro reference rate is equivalent to the euro and corresponds to 1000 USD; 2) account holder in connection with this account or the account holder the other account in the financial institution during the last three years has not made any transaction; 3) financial institution in the last six years have not received from the account holder new, additional or updated information in connection with the account or the account holder in another account maintenance; 4) where a financial institution in the last six years have not been in contact with the holder of the account in respect of any account, which it kept in the financial institution where the account is considered off which is an insurance contract with the provision of funds. Article 97. Iepriekšpastāvēj an account

(1) the Iepriekšpastāvēj account is a physical person or legal arrangement account that financial institutions maintain account categories as at the date of the determination. Account category determination date, the holder of the account or the real beneficiary is the other country of the European Union tax resident, is December 31, 2015. The Cabinet of Ministers in determining the list of participating countries, for each of the countries involved, which is not a Member State of the European Union and with which the automatic exchange of information about financial accounts, set account category, the date of the determination. (2) the Iepriekšpastāvēj account is also a financial account that opened after the account category determination date if all the following conditions are satisfied: 1) such account holder already there by the date specified in the relevant financial institution (or related legal formations operating in the Republic of Latvia) other financial accounts, which are recognized as iepriekšpastāvējuš account in accordance with the first subparagraph; 2) financial institution (or a related legal entity operating in the Republic of Latvia) all the account holder's account shall be considered a single financial account, applying the Cabinet defined the proper account verification procedures that apply to the account closing balance or value determination and reliance on the account holder's own certification or provided documentary evidence; 3) financial institution, in applying appropriate criminal money laundering and terrorist financing Prevention Act approved financial institutions customer identification and research procedures in respect of the account, shall be entitled to rely on the results of the application of the procedures relating to the first part of this article, iepriekšpastāvējuš in the account; 4) to open financial accounts after the first part of this article in the specified date, the account holder is not required to provide new, additional or updated information, except for the information to be submitted in the framework of this chapter. (3) if the financial institution used in this law, the fourth paragraph of article 99 of the rights, the determination of categories of accounts shall be deemed the date of 31 December 2015. 98. article. New account new account acknowledges financial institutions maintain the account opened by the determination of the date of account categories, except when a financial institution recognised for iepriekšpastāvējuš account in accordance with article 97 of this law the second part. Article 99. Due diligence procedures (1) the cabinet shall determine the order in which the financial institution account executive due diligence procedures. (2) the financial institution to find out if a new account is subject to reporting in accordance with the procedure laid down in this chapter, on the basis of the customer's financial institution the certificate provided for in the tax residence information unless it comes into conflict with the data obtained for the financial institution clients in connection with opening an account and the corresponding criminal money laundering and terrorist financing Prevention Act approved financial institutions customer identification and research procedures. (3) the financial institution established by the iepriekšpastāvēj account is subject to reporting in accordance with the procedure laid down in this chapter in accordance with the requirements of the Cabinet due diligence procedures, including on the information that the financial institution is obtained about the customer in connection with the account opening and according to the Crime of money laundering and terrorist financing Prevention Act approved financial institutions customer identification and research procedures. Financial institution, whether iepriekšpastāvēj the account is subject to reporting in accordance with the procedure laid down in this chapter shall be entitled to rely only on the client also own the certificate of tax residence information unless it comes into conflict with the data obtained by the financial authority of the client in connection with the account opening and according to the Crime of money laundering and terrorist financing Prevention Act approved financial institutions customer identification and research procedures. (4) the financial institution is entitled to apply in this chapter and the regulations of the Cabinet of that account due diligence procedures also for those financial accounts held or the true beneficiaries due diligence exercise should not be considered as persons in respect of which this Act must be provided the information referred to in article 100. (5) the financial institution is entitled to use outsourcing in this chapter, the specific duties, taking responsibility for outsourcing providers actions or inaction. (6) financial account holder and a passive non-financial legal arrangement true beneficiary financial institutions have a duty to set deadlines to submit correct financial authority and real's own proof of the place of residence for tax or new documentary evidence. 100. article. The obligations of the financial institution

(1) Article 71 of this Act, the financial institution is obliged to provide to the State revenue service for each account subject to reporting by the financial institution to establish, in accordance with the Cabinet of Ministers established the proper account verification procedures, with the following information: 1) if the account holder is a natural person — a person in the country concerned (who is the account holder) name, surname, date and place of birth, address, the name of the country concerned, the taxpayer identification number (if one is assigned); 2) if the account holder is a legal entity, the participating country Parties (which is the account holder) the name, address, the name of the country concerned, the taxpayer identification number (if one is assigned); 3) if the account holder is a legal entity and this gimmick has one or more of the true beneficiaries of that after due verification procedures are recognized as persons, for which the report, account holder's name, address, details of the participating national and a resident of another country, the tax status of the taxpayer identification number (if one is assigned), each of the true beneficiaries (who are the participating countries a person that report) name, surname, date and place of birth, address, the name of the country concerned, the taxpayer identification number (if one is assigned); 4) account number (or functional equivalent of, if not the account number); 5) financial institutions that provide reports, name and identification number (if any); 6) account ending balance or value (including, in the case of insurance contracts or accumulating annuities contracts — the value in cash or repurchase amount) of the calendar year concerned or other relevant reporting period or, if the account at the end of the year or reporting period closed, information about account closure; 7) on the financial instruments account: a) the total gross amount of the interest, the total gross amount of dividends, other income achieved in relation to the assets held in the account, the total gross amount paid in each case, account or credited to the account (or in relation to an account) in any calendar year or other relevant reporting period (b)) the total gross revenue from the sale of financial assets, or delete, which paid out to the account or credited to the account in a calendar year or other relevant reporting period where the financial institution, which provides reports, acted as turētājiestād, the investment body, the nominal holders of financial assets as account holder or agent; 8) on deposit account-interest total gross amount paid or credited to the account to the account in a calendar year or other relevant reporting period in relation to this deposit account held financial assets; 9) on any subject to financial reporting account, which are not mentioned in this part, paragraphs 7 or 8, — the total gross amount paid or credited to the account holder in connection with the account (including the total amount of any charges associated with the deletion of the account holder) calendar year or other relevant reporting period in respect of which the financial institution providing the messages is subject to the payment of the liabilities of the person or the debtor. (2) pursuant to the first paragraph of this article, the information communicated shall indicate the amounts of each currency. (3) if the reporting account is subject to a iepriekšpastāvēj account, apart from the first paragraph of this article 1, paragraph 2 and 3 of the provisions of the financial institution is not obliged to notify the account holder, the true beneficiaries of taxpayer identification number or date of birth, if such a taxpayer identification number or date of birth is not a financial institution. A financial institution that provides reports, is obliged to take the necessary additional steps to obtain a taxpayer identification number or date of birth in relation to accounts iepriekšpastāvējuš it to the other end of the calendar year following the year in which the iepriekšpastāvējuš accounts were identified as the account, for which the report. (4) Notwithstanding the first subparagraph of paragraph 1 and 3 of the rules of the place of birth data are not reported, except: 1) a financial institution that provides reports, have been obliged to obtain and report this data in accordance with other laws and regulations; 2) available electronically uzmeklējamo data maintained by a financial institution, which provides reports. (5) the order in which the financial institutions in the first paragraph of this article, the information provided in the State revenue service for transmission to other competent national authority and the State revenue service shall forward this information to other countries, the competent authorities determined by the Cabinet of Ministers. (6) a financial institution, providing messages, before reporting to the State revenue service shall inform their customers, what to report and that their data will be processed and sent to the State revenue service in accordance with the procedure laid down in this chapter and the intended purpose. 101. article. The State revenue service's responsibilities with regard to the exchange of information on financial accounts (1) the State Revenue Service article 100 of this law in the first part of the information laid down in the State involved shall provide to the competent authority at least once a year, not later than nine months after the end of the calendar year to which the information relates. (2) the list with the exception of financial institutions and the financial accounts of the State revenue service are sent to the European Commission for publication in the official journal of the European Union. " 2. Add to the informative reference to European Union directives, with paragraph 15 as follows: "the Council 15) 2014 9. December 2014/107/EU directive, amending Directive/16/2011 the EU as regards the mandatory automatic exchange of information in tax matters." The law shall enter into force on 31 December 2015. The Parliament adopted the law of 17 December 2015. The President r. vējonis 2015 in Riga on December 23.