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) the amendments are as follows: 1. Article 1: replace the first paragraph, the words "Of the annual accounts" with the words "the law" of the annual accounts;
express the nineteenth part as follows: "(19) company, a corporation that is: 1) a resident of the Republic of Latvia;
2) society — another resident in a Member State of the European Union, which simultaneously meets the following criteria: (a)) is listed in annex 1 of this Act, (b)) in accordance with the European Union Member State's tax legislation is recognized as relevant in the Member States of the European Union resident for taxation purposes and, on the basis of the agreement on the avoidance of double taxation concluded with a third country, for taxation purposes is not considered to be resident in the country that is not a Member State of the European Union, c) is the taxable person who pays any of this law, 2. the taxes listed in the annex, if it is not exempt from the tax, or it does not have the possibility to choose the tax exemption;
3) the countries of the European economic area (which is not a Member State of the European Union) that the resident in the country of residence is subject to taxation in the Republic of Latvia, the corporate income tax tax similar in substance, if it is 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 taxation purposes is not considered to be resident in the country that is not a member of the European economic area. ';
to supplement the article with the twenty-fifth by the following: (25) of the European Union or the European economic area publicly traded securities — the Member States of the European Union or the European economic area countries regulated markets listed securities, as well as the Member States of the European Union or the European economic area countries open investment funds registered investment certificates, even if they are not included in any of the Member States of the European Union or European economic area State of the regulated market. "
2. in article 2: turn off the first part of paragraph 1, "b" and "c" above the words "third and fourth";
Replace paragraph 2 of the second paragraph, the words "the law" Of the annual accounts "with the words" the law "of the annual accounts;
Add to the second part of paragraph 8 with the following: "8) financial and capital market Commission.";
turn off the fourth and fifth.
3. Article 3: Supplement to the fourth subparagraph of paragraph 1, after the words "— another Member State of the European Union" by the words "or of the European economic area ';
Add to paragraph 1, the fourth subparagraph with the following sentence: "the obligation to withhold tax from the non-resident holder of shares, or an intermediary — under a public stock company dividends and off the State budget is a securities account holder who made a settlement with the non-resident.";
Express 4.2 part as follows: "(42) fourth subparagraph of this article, paragraph 1 should exempt also applicable when dividends are paid out in the fourth paragraph of this article referred to in paragraph 1, the permanent representation of the company situated in another Member State of the European Union or the European economic area country, if the payment received by the permanent representation in the relevant Member State of the European Union are subject to liability under any of this law, referred to in annex 2 of the taxes or identical duties , or substantially similar taxes that can be introduced, replacing the law referred to in annex 2 of the taxes, or in the European economic area are subject to taxation in the Republic of Latvia to the corporate income tax tax similar in substance. The fourth paragraph of this article, paragraph 1 should exempt also applicable when dividends are paid out of this law, in article 1, the nineteenth in the part of the company, another resident in a Member State of the European Union or the European economic area residents — the permanent representation of the Republic of Latvia. "
replace the seventh paragraph, the words "the law" of the annual accounts "with the words" the law "of the annual accounts.
4. Article 4: replace the first paragraph, the words "the law" Of the annual accounts "with the words" the law "of the annual accounts;
Add to the first paragraph after the words "person" with the words "owned or in use";
replace 1.1 paragraph, the words "the law on annual accounts" with the words "the law" of the annual accounts;
in the fifth subparagraph, replace the words "the law" Of the annual accounts "with the words" the law "of the annual accounts.
5. Supplement article 5, third paragraph, after the word "owned" by the words "or use the existing".
6. Article 6: replace the first subparagraph of paragraph 2, the words "also sanctions (the principal sum, late of the increase) the amount of" with the words "as well as late payment penalties and other amounts";
make the first part of paragraph 7 and 8 as follows: "7) taxation period the loss from sales of securities (excluding losses from the European Union or the European economic area publicly traded securities as well as losses of sales subject to article 14 of this law, the conditions of paragraph 8.1);
8) expenditure associated with the European Union or the European economic area publicly traded securities purchases tax period; ";
replace the third paragraph, the words "as well as on the virslimit the use of natural resources and environmental pollution, the amount of the payment, virslimit" with the words "as well as the illegal exploitation of natural resources, or use";
to make the fourth part of paragraph 9 by the following: "9) revenue from the European Union or the European economic area publicly traded securities sales;"
Supplement fifth after the word "the" with the words "balance sheet and off-balance-sheet";
Supplement 5.3 subparagraph following the words ' revaluation results "with the words" (including the case where changes in fair value recognised in the profit and loss statement). "
7. Supplement article 6.4 of the fourth paragraph, after the word "credit" with the words "loan services" and after the words "of the World Bank Group" with the words "as well as the residents of the Republic of Latvia".
8. in article 9: Supplement 1.1 part after the word "conditions" with the words "and all associated debt collection and recovery operations";
to complement the fourth paragraph after the word "lost" with the words "the rights of recourse factoring, with or without the" and "after the word" lost "with the words" the rights of recourse factoring, with or without the "."
9. Express article 11 the fourth and fifth by the following: "(4) the domestic company's taxable income is raised on the amount of dividends receivable from this law, article 1 of the nineteenth, part of the company — other Member States of the European Union or European economic area residents.
(5) the non-resident's taxable income of the permanent representation are not expandable on the amount of dividends receivable from non-residents, if both the company whose permanent representation of Latvia receives a dividend, and the public that those dividends paid (or company whose permanent establishment in another Member State of the European Union or the European economic area country in its costs), is a society of this law, article 1, part of the nineteenth. "
10. in article 12: replace the second subparagraph the words "in paragraph 1.1 higher" with the word "higher";
Add to the second sentence of the third paragraph after the words "are subject to" with the words "(if those are not from payments withheld personal income tax)".
11. Article 13: adding to the first part of paragraph 9, before the words "the period" with the words "starting with the tax period in which the national regional development Council has acted in regional development for the development of the taxable person's compliance with the special assisted areas development programme, and"; 
make the second paragraph as follows: "(2) the net book value of the asset increases of asset-building, restoration and reconstruction costs, which are caused by adding or replacing parts or parts, which significantly increases the production potential of the asset or extend its life. Net book value of the asset shall be reduced by the part of the fixed assets to be excluded or the residual value of the component. If a replacement part or part, net book value is not calculated separately, the asset value is reduced by a depreciated replacement cost. "
Add to article 5.1 part as follows: "(51) for payment and self-inflicted computer obtained software and programs for calculating depreciation for tax purposes records of fixed assets 3 category and do not apply to this article, the fourth and fifth.";
Supplement to the twelfth article of the following:

"(12) If the taxable investment property or for classified biological assets of permanent plantations, which is used in economic activities and subjected to depreciation, after its initial inventory costs continue to be evaluated through the method of cost of acquisition, the investment property or the above biological assets for tax purposes depreciation of fixed assets and this heralds an investment property or a biological asset as the asset according to the provisions of this article calculates depreciation for tax purposes."
12. in article 14: Add to articles with 1.3 and 1.4 in part as follows: "(13) a corporation established in the individual company (also a farmer or fisherman holding) conversion, may take over five of the individual company in the last years of the injury, not segto if the following conditions are fulfilled: 1) the individual company (also a farmer or fisherman's farm) in the tax period before the conversion of a capital company has been registered in the State revenue service as corporate income tax payer;
2) Corporation, which takes individual business losses incurred during the previous operating stores;
3) solo business owner becomes the sole shareholder of the Corporation.
(14) in calculating taxable income, the taxpayer or the tax period pirmstaksācij period losses covered by moving them to another country, a non-resident taxpayer, shall not be taken into account. On the cover losses do not reduce taxable income. Cover the amount of the loss and loss is presented under the corporate income tax declaration in the taxation year. ";
to make an eighth of the following: "(8) taxation period the loss from the sale of other securities that are not members of the European Union or European economic area publicly traded securities may be covered in chronological order from the next five tax period taxable income from other securities sales, but no more than that amount of loss."
13. in article 14.1: make the second paragraph as follows: "(2) for the purposes of this article the main company-company group — is the legal or natural person that is the Republic of Latvia or a resident, with which the Republic of Latvia has concluded a Convention or Treaty on the avoidance of double taxation and the prevention of fraud or other European economic area residents who, on the basis of the existing Convention on the Elimination of double taxation are not also recognized on another country (not members of the European economic area) resident. ";
to make the third part of the introductory paragraph as follows: "(3) for the purposes of this article the main company subsidiaries — company member of the group — is a domestic company or companies — resident of a country with which the Republic of Latvia has concluded a Convention or Treaty on the avoidance of double taxation and the prevention of fraud or other European economic area residents who, on the basis of the existing Convention on the avoidance of double taxation, is also recognized for another country (not members of the European economic area) resident of which at least 90 percent belong to: ";
express the sixth part as follows: "(6) If a taxpayer is a member of the group — a resident of Latvia (or the members of the Permanent Mission of the Republic of Latvia), in accordance with this Act and other legislation of Latvia made taxation of profit or loss of the period of adjustment, the result is a loss, then according to the provisions of this article, the other members of this group of companies-residents of Latvia (or the members of the permanent missions of the Republic of Latvia) or more of the following members for the same tax period taxable income calculated in accordance with this law and other legislation of Latvia may be reduced by an amount which shall not exceed in total the former company (or group of members of the permanent missions of the Republic of Latvia) loss amount. ";
Add to article 6.1 of the part as follows: "If the company (61) group — a resident of a country with which the Republic of Latvia has concluded a Convention or Treaty on the avoidance of double taxation and the prevention of fraud or other European economic area countries, with the resident corporate income tax the taxable income of the tax period, calculated according to the laws of the Republic of Latvia, is negative (loss) and the company group is not possible, these losses during the tax period shall be taken into account in subsequent years determining taxable income, as well as those losses are not likely to take over for another taxpayer, then the country of residence in accordance with the provisions of article one of this group of companies (or the members of the permanent missions of the Republic of Latvia) or more of the following members for the same tax period taxable income calculated in accordance with this law, can be reduced to an amount which does not exceed in total the enterprise referred to in the first tax period the amount of loss. "
to make the seventh subparagraph by the following: "(7) the members of the Group — Latvian residents (or the members of the permanent missions of the Republic of Latvia) — tax period losses can be transferred to other companies in the same group — Latvian residents (or the members of the permanent representation of the Republic of Latvia)-only if you run the first five of the following conditions are met and the sixth or seventh or eighth in the following condition: 1) both companies are members of the group throughout the period of taxation that incurred losses that are carried over;
2) both corporate (or members of the permanent representation of the Republic of Latvia) the tax period ends on the same date;
3) none of the companies in accordance with a law of the Republic of Latvia is not exempt from corporate income tax or a tax rebate is applied according to the Latvian legislation on taxation of free ports and special economic zones;
4) no company (or group of members of the permanent representation of the Republic of Latvia) is not a tax debtor in respect of the Republic of Latvia of any taxes payable, except when the tax deadlines are extended in accordance with the law on taxes and duties ";
5) both companies (also referred to in this article 6.1 the company group) or a group of members of the permanent representation of the Republic of Latvia with this company (or group of members of the permanent representation of the Republic of Latvia) income tax declarations submitted sworn auditor, approved the annual report;
6) both companies is a corporation that is a resident of the Republic of Latvia and at the same time not resident in another State;
7) one of the companies is a corporation that is a resident of the Republic of Latvia and at the same time no other State residents, and the other is the Group company's permanent representation in the Republic of Latvia;
8) both companies are members of the Group and their loss puts and takes over the members of the company's permanent representation in the Republic of Latvia. "
to supplement the article with the 7.1 part as follows: "(71) in part 6.1 of this article, the Member of the Group's loss for the tax period shall be entitled to transfer to another company, which is the same company Group — Corporation — the Republic of Latvia, or to other parts of this article 6.1 of the same mentioned in the company of members of the permanent representation of the Republic of Latvia only if you run the seventh part of this article 1. 2 and 5 and both of the following conditions are met: 1) one of the companies in accordance with a law of the Republic of Latvia or to the laws of a country with which the Republic of Latvia has concluded a Convention or Treaty on the avoidance of double taxation and the prevention of fiscal evasion, or the European economic area country laws and not exempt from corporate income tax or substantially similar income tax payment they are not subject to the reduced rate of this tax or not tax rebate is applied according to the Latvian legislation on taxation of free ports and special economic zones;
2) no company (or to the permanent representation of the Republic of Latvia) is not a tax debtor in respect of the Republic of Latvia or any company — — non-residents in the country of residence, payable taxes, except where the tax deadlines are extended in accordance with the law on taxes and duties "or the country of residence regulations.";
to make the eighth, ninth, tenth and eleventh subparagraph by the following: "(8) the company (or its permanent representation in the Republic of Latvia) the tax period, which has been transferred to another company (or its permanent representation of the Republic of Latvia), first by the company (or its permanent representation in the Republic of Latvia) may not be the subject of this or other taxable income of the tax period.

(9) the company (or its permanent representation in the Republic of Latvia) the tax period the amount of the loss is carried over to another company (or its permanent representation of the Republic of Latvia), must not exceed that other company (or its permanent representation in the Republic of Latvia) for the same tax period taxable income amount.
(10) If the amount of loss that the company (or its permanent representation in the Republic of Latvia) is transferred to another company (or its permanent representation of the Republic of Latvia), exceeds the amount which the company (or its permanent representation of the Republic of Latvia) were allowed to be transferred in accordance with this law, the two companies jointly or individually are responsible for any taxes and of any associated delay and payment of fines that has not been paid, by reducing the taxable income of the amount exceeding the amount of the losses carried forward.
(11) If a taxpayer's business group — Latvian residents (or the members of the permanent missions of the Republic of Latvia) — taxable income is reduced by the amount of the damages to which they transferred from another taxpayer group of companies-residents of Latvia (or the members of the permanent missions of the Republic of Latvia), both taxpayers with business income tax declarations must be submitted to the taxation year tax statement annex, in which both companies evidenced that they have the relevant taxation period in one and the same group of companies, as well as the reasons why they are considered one and the same enterprise group. ";
Supplement to the twelfth article as follows: "(12) If the group loss transfer pursuant to this article 6.1, the part of the taxpayer, the loss of the transferee with the tax period, the corporate income tax declaration be submitted: 1) the annual accounts of non-residents, which is prepared according to the laws of the Republic of Latvia and adjusted in accordance with this Act;
2) taxation year tax statement annex, in which it declares that the loss taken over from the company that the relevant taxation period is the same group of companies as well as justifying why they are considered one and the same group of companies as well as the participants confirmed that the injury is not emulated by other taxpayers;
3-non-resident companies): country of residence tax certificate confirming that: (a) the company has a specific company) group a, b) from losses in a given tax period, c) according the country of laws for this group does not have the possibility to take into account the losses in subsequent periods of taxation or to apply to the previous tax period, and it is not right to take over the other taxpayers in its residence country. "
14. Express article 20 eighth as follows: "(8) tax credit according to the first paragraph of this article shall not apply where: 1) donation target set in the donation recipient, contains a direct or indirect reference to a specific donated funds to the recipient that is associated with the donor company or affiliated person or employee, or by donating to the employee's family member, the recipient of the donation or 2) out of the remuneration practices that focus on the benefit to the donor, the donor related company or person donating a relative up to the third degree, or spouse, or to ensure the interests of the donors who are not related to philanthropy. "
15. in article 22: replace the first paragraph, the words "the law" Of the annual accounts "with the words" the law "of the annual accounts;
to make the fourth subparagraph by the following: "(4) the tax period tax overpayments the State revenue service including the taxpayer's future tax payments of the debts or tax refunded to the taxable person, upon his request and in 30 days, if this article 4.1 and 4.2, unless otherwise defined in this part."
Add to article 4.1, 4.2 and 4.3 of the part as follows: "(5) the State revenue service has the right to delay the repayment of excess tax amounts, informing in writing the taxpayer, if the fourth paragraph of this article, within the time limit laid down in the decision on the taxpayer's tax payable for the control (inspection audit), — until the day after the tax administration has taken a decision on the validity of the overcharge.
(42) If the taxable person is the State revenue administration for tax or other national debt payments, the State revenue service overpaid amount of tax shifting tax or other concerned State to cover the down payment.
(43) in part 4.2 of this article shall not apply if the payment of the tax debt is deferred for the Ministry of finance or the State revenue service law "About taxes and charges" in accordance with the procedure laid down and a commitment is fulfilled. "
16. Replace article 23, first paragraph, point 1, the words "the law" of the annual accounts "with the words" the law "of the annual accounts.
17. in article 26: replace the first paragraph, the words "Of the annual accounts" with the words "the law" of the annual accounts;
to supplement the first subparagraph following the words "the law" About taxes and duties "with the words" and other laws and regulations laying down the administrative and criminal liability ";
to complement the second subparagraph following the words ' it is responsible according to the law on taxes and duties "with the words" and other laws and regulations laying down the administrative and criminal liability ".
18. transitional provisions: off 52 and 53;
transitional provisions be supplemented with 73, 74, 75 and 76. point as follows: "73. Corporate income tax payers are individual companies (including farmers and fishermen holding) that by 31 December 2006 are registered in the State revenue service as corporate income tax and an annual report in accordance with the transitional provisions of the law of choice to their transformation to prepare the annual report under that law. Individual companies (including farmers and fishermen holding) that by 31 December 2006 are registered in the State revenue service as corporate income tax, and in accordance with the annual accounts Act for the transitional provisions did not choose to their transformation to prepare the annual report under that law, there is no corporate income tax, they become personal income tax payers.
74. Article 2 of this law, the second subparagraph of paragraph 8 applies, starting with the tax period, starting in 2006.
75. Amendment of article 11 of the fourth and fifth subparagraphs applicable for dividends, calculated, starting with the tax period, which begins in 2006.
76. Amendments 14.1 in the second, third, sixth, in part 6.1 amendments to the seventh part part part of the amendments, 7.1 in the eighth, ninth, tenth, eleventh, and twelfth, starting with the tax period, beginning in 2006. "
The law shall enter into force on 1 January 2007.
The Parliament adopted the law of 19 December 2006.
State v. President Vaira Vīķe-Freiberga in Riga, December 29, 2006, in the Editorial Note: the law shall enter into force by 1 January 2007.