The Saeima has adopted and the President promulgated the following laws: the amendments to law "on personal income tax" make law "on personal income tax" (the Republic of Latvia Supreme Council and Government Informant, 1993, 22/23.nr.; The Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1994, nr. 2, 23; in 1995, 8., no. 14; 1996, no. 9; 1997, nr. 3, 21; in 1998, no 1; 1999, nr. 24; 2000, no. 5; 2001, no. 1, 24; in 2002, no 6; 2003, no. 15; 2004, no. 2; in 2005, 2., 8., no. 24; 2006, nr. 14, 22.) the following amendments: 1. in article 2: Add to the introductory paragraph with the words "natural persons (hereinafter persons)";
turn 1 and in paragraph 2, the words "natural person";
3. turn off the point and dash "natural persons".
2. in article 3: turn off in the first paragraph, the words "(hereinafter person)";
replace the third paragraph in the introductory part, the words "foreign" with the word "Foreign";
Add to paragraph 4 of part three with the following sentence: "such income is also related to trips and travel paid amounts that exceed the law that determines the order in which the recoverable with the missions and the staff of travel-related expenses, certain norms."
3. Add to article 4, paragraph 5, first subparagraph, after the words "the foreign" with the words "financial or".
4. in article 8: replace the second paragraph, the words "companies, public enterprises, institutions, organisations and of the natural persons, as well as compensation for public service obligations and income from" by the words "commercial companies, cooperatives, the European company, the European cooperative societies, European economic interest groups, State and local authorities, associations, enterprises, individual enterprises, farmers or fishermen's organizations and farms from natural persons (including individual merchant) as well as compensation for public service obligations and other income ";
to supplement the article with a 2.1 share the following: "2.1 payroll tax paid on income gained for fulfilling the obligations of a capital company registered in the Republic of Latvia, the cooperative society, the European company, the European Cooperative Society Council or the Executive Board, regardless of whether the income is received from capital companies established in the Republic of Latvia or other corporations that are not resident in the Republic of Latvia, as well as on the income gained for fulfilling the obligations of elected Governments, in other elected posts and posts in which the person is appointed on the basis of the Saeima, the Cabinet of Ministers or authorities (Council or Council) decision. "
replace the fifth part in the introductory part, the words "excluded employees the benefit of the employer made the contributions private pension funds under the licensed pension plans and life insurance paid to" with the words "cabinet order excludes the Republic of Latvia or another Member State of the European Union or the European economic area country registered private pension funds under the licensed pension plans and in the Republic of Latvia or another Member State of the European Union or the European economic area country registered a company paid life insurance" and the number "180" with the number "300".
5. in article 9: turn off the first part of paragraph 1, the words "personal palīgsaimniecīb, backyard farms and farmers or fisherman's farm (farm)";
make the first part of paragraph 2 as follows: "2) natural persons, individual business owner — income from individual companies that have corporate income tax payers, and natural persons of the dividends paid by the Corporation of the Republic of Latvia or cooperative society, as well as profit from another Member State of the European Union or the European economic area country resident-company profit, excluding dividend from domestic companies that do not pay corporate income tax , or another Member State of the European Union or the European economic area country resident-companies that do not pay corporate income tax by nature similar to income tax in their country of residence, as well as from those enterprises that use other laws of the Republic of Latvia (except the law "on enterprise income tax") in certain corporate income tax incentives or discounts or substantially similar in another Member State of the European Union and European economic area country specific tax incentives or discounts to the Declaration of dividends in the year or in the previous year; ";"
Add to the first subparagraph of paragraph 3, after the words "Member States" with the words "or the European economic area countries";
make the first part of paragraph 4 by the following: "4), which claims paid in the Republic of Latvia registered insurance companies, established and operating under the supervision of insurance companies and their law, as well as the other Member State of the European Union or the European economic area country registered insurance companies, established and operating in accordance with the relevant Member State of the European Union or European economic area national laws and regulations, with the exception of claims paid upon life, health and accident insurance contract that insured the interests the employer (or other policyholders: the legal entity), the insurance contract comes the end of the contract or agreement before terminating; ";
Add to the first part of paragraph 6, after the word "the" with the words "of Latvia or another Member State of the European Union or the European economic area ';
Add to paragraph 10, the words "and the Cabinet of Ministers";
make the first part of paragraph 19, point "a" the following: "(a) a sale made or purchased) things (tangible or intangible) sales,";
turn off the first part of paragraph 21;
turn off the first part of paragraph 22, the words "in the form of grants";
turn off the first part of paragraph 23;
make the third subparagraph by the following: "3. the non-resident's income gained in Latvia does not apply the provisions of this article, except for the non-resident, who is in another Member State of the European Union or the European economic area country resident and which tax year Latvia received more than 75 percent of their total income, and except where the non-resident has received the first part of this article 14 and paragraph 17 of these resources or the first part of this article 16 referred to compensation to cover the expenses of the person in connection with the work or the performance of their duties, travelling or working trips. ";
to supplement the article with a 3.3 share the following: "3.3 the first part referred to in paragraph 2, where a dividend is received from a corporation that uses the law to reduce the corporate income tax in accordance with other laws (with the exception of the law" On enterprise income tax "), they are taxable in proportion to the share of profits it, applying the laws (excluding law on enterprise income tax") in certain corporate income tax reductions or exemptions not been subject to the corporate income tax. "
6. in article 10: adding to the first subparagraph of paragraph 5, after the words "Member States" with the words "or the European economic area countries";
Add to the first part of paragraph 6, after the words "Member State of the Union" by the words "or the European economic area country";
to complement the fourth paragraph after the words "Member States" with the words "or of the European economic area".
7. in article 11: Add to the third subparagraph of paragraph 4, after the words "in accordance with" with the words "this Act and the 11.5 article and";
turn off the fifth;
express the sixth by the following: "6. are not included in taxable income in agricultural products (pašpatēriņš), which used their own needs person and his family members, as well as those who are paying up to the third degree of kinship or affinity up to the second degree.";
make the eleventh subparagraph by the following: ' 11. If the calculation of an individual's taxation year operating income or loss, is excluded amounts paid as State aid to agriculture or European Union support for agriculture and rural development, and that amount off results in a loss or increase in these losses or increase the loss may not be the subject of the next tax year operating income under the ninth and tenth ".
Supplement to the twelfth and thirteenth article of the following:

"12. If the taxable person does not incur operating expenses or they are not essential, gaining income from the property (hiring or renting out real estate, passing the case to the next apakšnomniek or subletting, renting of movable property or through a fee for the use of natural resources or the use of aprobežojum), you may not register with the State revenue service as operational. In this case, the person is not entitled to apply the operating costs and shall be included with the maintenance and management of the property, except real estate tax payments for the real estate.
13. Persons who from backyard farms or personal profit of palīgsaimniecīb, who, in accordance with article 9 of this law, the first subparagraph of paragraph 1 do not exceed 3000 lats year, or profit from mushrooming, berry picking or wild herbs and flowers collection, may not register as economic agents. Persons who derive income from backyard farms or personal palīgsaimniecīb in agricultural production and rural tourism services, provide records to determine when income reaches above 3000 lats year. "
8. Express 11.1 article as follows: "article 11.1. Special provisions for operating income to taxable persons to determine the sort of double-entry bookkeeping system 1. Person who according to the law "on accounting" sort of double-entry accounting system, operating income down, adjusted in accordance with the procedure laid down in this article is the statement of revenue and expenditure of the revenue and expenditure shown in the difference (referred to in this article, the result).
2. the person who according to the law "on accounting" choose a sort of double-entry accounting system, operating income in determining the transactions and events are recognised in the period in which they occur, regardless of when payment is made, and preparing a balance sheet and a statement of revenue and expenditure in accordance with the law "on accounting" in article 13, sixth.
3. the result is increased (a negative result reduces the case) for expenditure (expenditure side), which are not directly related to the taxpayer (individual enterprise) business operations in accordance with the law "on enterprise income tax" in article 5.
4. the result is increased (a negative result reduces the case) for: 1) fines, penalties and fines the amount used, the penalties (late) the amount calculated in accordance with the law on taxes and duties "and specific tax laws;
2) shortfall or izlaupījum unfit for amounts exceeding 100 lats): (a) if the underlying has not reported to law enforcement authorities, which adopted the decision on the initiation of criminal proceedings or the refusal to initiate criminal proceedings, or (b) exceeds the taxpayer's expected loss) margin, calculated on the basis of the three previous taxation year of actual loss;
3) interest payment part exceeding the amount of the interest payment portion, which is calculated by applying the debts of the Central Administration of statistics pirmstaksācij specified period last month the average short-term loan rate credit, multiplied by a factor of 1.2, if interest payments are made between the person and the company, if the person is with a company related to the law "on enterprise income tax" in article 1, the fifth subparagraph;
4) bad (lost, without hope of ever recovering them) shows the amounts included directly in cost if they do not comply with this law, the conditions set out in article 11.3 the accounts receivable for recognition for your debts, as well as in other cases provided for in article 11.3;
5) taxable abroad paid individual income tax (or the tax);
6) virslimit the use of natural resources and environmental pollution virslimit payment amount;
7) employee contributions made in good private pension funds under the licensed pension plans and iemaksātaj the amount of insurance premiums for employees ' life insurance (with accumulation of funds) in accordance with article 8 of this law the fifth subparagraph, if the payer of the tax period is the last day of the tax debt;
8) taxable personal income tax (including the personal income tax advance payments), if the payment was made from the economic activities of the separate funds;
9) insurance premiums payments made to insurance companies, which created and operates outside the European Union and European economic area countries;
10) employee benefit private pension funds have made contributions, if they contributed to the pension funds that created and operates outside the European Union and European economic area countries;
11) 40 percent of expenditure used in the representation. The meaning of this article, representation expenses is taxable expenses for its prestigious building and maintenance of the standards adopted by the company. These include the expenses of the Conference, the public reception and meal for the organisation, as well as the costs of paying for the construction of the subject of the tender.
5. The Bill will increase the results (negative result reduces the case) in accordance with the law "on accounting" and subordinate regulations, the reference year and scrapped fixed asset depreciation written off the value of intangible investment amount, but reduces (negative incremented in case the results), in accordance with article 11.5 of this law and the law "On enterprise income tax" article 13 requirements calculated asset depreciation and depreciated the value of intangible investment amount.
6. The payer reduces the result (result negative in the case of increases) for amounts paid as State aid, agriculture, or the European Union's support for agriculture and rural development.
7. If the payer receives income from agricultural or rural tourism services, it reduces operating income about this law, article 9, first paragraph, referred to in point 1 is not taxable income from agricultural or rural tourism services. If the payer receives income from agricultural or rural tourism services and other types of economic activities, it reduces operating income about this law, article 9, first paragraph, referred to in point 1 is not taxable income from agricultural or rural tourism services in proportion to the agricultural or rural tourism service revenue total operating revenue.
8. The taxpayer's taxation year operating loss (negative operating income) covered in chronological order from the next three tax year taxable income of economic activity.
9. If adjusting the result in accordance with the sixth subparagraph of this article, has incurred operating losses (or loss increases), this adjustment losses or loss increase may not be the subject of the next tax year operating income under the seventh paragraph of this article.
10. the person who launched a sort of double-entry accounting system, do it at least five taxation years. "
9. Turn off 11.2 article.
10. To supplement the law with 11.3, 11.4 and 11.5 article as follows: "article 11.3. Lost debts 1. Receivables can be considered lost debt amounts where compliance with the first two and one of the other conditions mentioned in this paragraph: 1) income relating to these debts before it is included in operating income in the calculation;
2) customer is a taxable person, resident or permanent representation, or a resident of the countries with which Latvia has concluded conventions for the avoidance of double taxation and the prevention of fiscal evasion, if this is the entry into force of the Convention, or by a Member State of the European Union or the European economic area country resident;
3) customer is the State or municipal corporation, which wound up in accordance with the relevant decision of the institution;
4) is a judgment of the Court of Justice for recovery of the debt from the debtor and the bailiff's Act concerning the impossibility of recovery and company — the customer is excluded from the business register;
5) is a judgment of the Court of Justice for recovery of the debt from the debtor — natural persons — and the bailiff's Act concerning the impossibility of recovery or recovery of receivables in court is not possible for reasons of usefulness due to customer debt amount is less than the costs associated with the recovery, and the above steps have been taken to recover the debt, provided that each individual customer debt amount does not exceed 100 lats.
2. If the first part of this article 1 and paragraph 2 defined conditions, the result is reduced (in the case of a negative result-increase) on the side of the amount lost when the customer has a previous bankruptcy. The remaining lost the amount of the debt may be included in the operating costs after the completion of the customer's bankruptcy proceedings (Court decision on the completion of bankruptcy procedures).

3. If the taxpayer (individual businesses) in the current account was in the amount of money the account holder at the time of the bankruptcy, the law "on enterprise income tax" in article 9, second and third.
4. the result is increased (a negative result reduces the case) for the difference between the amount owed and lost it the amount of money obtained from the transfer of its claims to other persons, if the taxpayer of his claims for lost shows that meet the conditions laid down in this article is passed on to other persons. 
11.4 article. In the case of natural disasters and other force would suffer operating losses 1. as a result of natural disasters or otherwise forcibly caused the loss of fixed assets is considered the replacement of the fixed asset to an amount of money equal to the refund for a given asset, except as provided for in this article.
2. the operating income, income from compensation for natural disasters or otherwise forcibly losing their land, buildings, and structures shall not be taken into account if, within 12 months from the date of receipt of compensation in the amount of the refund received is reinvested in the same or similar assets. Likewise, no account shall be taken of the income from each part of the refund, during the 12 months is reinvested in the same or similar fixed assets, if such compensation is paid in instalments.
3. If you run the conditions referred to in the second paragraph, the asset's book value (the person who manages accounting record system, simple — residual value tax calculation purposes) is equal to the value of the fixed asset in the balance sheet loss, plus the amount by which the new asset value exceeds the compensation for lost asset. 
11.5 article. Special rules for tax year disposal fixed assets depreciation and operating costs for the determination of the form 1. Fixed asset depreciation, in determining the taxable income is calculated for each asset individually, in accordance with the law "on enterprise income tax" article 13.
2. If the taxable assets owned by the business are used in part, the value of the depreciation tax calculation purposes calculated in proportion to the respective fixed assets for use in the business. The following persons shall be included in the calculated depreciation operating expenses only if the ratio can be determined objectively and is documented. If that proportion cannot be determined objectively and is not justified, the documentary person operating expenditure shall include 50 per cent of the calculated depreciation.
3. If the taxpayer-owned building (its part) part is used in economic activities, they are depreciated in proportion to the economic activity of part of the area used for the building of the share (part thereof) in the area.
4. Calculating personal passenger car (excluding passenger car with special equipment) values, depreciation expenses include depreciation calculated in proportion to the economic needs of the number of kilometres travelled but not more than 70 per cent.
5. where the taxable person carrying out economic activities use the premises or property, which is also used for the personal consumption, operating costs may only be taken into account with this room or the use of property related expenses part relating to economic activity, if possible to objectively determine this ratio and the documentary. If this ratio can not objectively be determined and documented to justify paying operating expenses include 70 percent of the operating expenses.
6. Personal passenger car (excluding passenger car with special equipment) operating costs include costs in proportion to the needs of economic activity, the number of miles travelled on the basis of the detailed routes. If the payer does not have an appropriate-looking source document, the editions contain not more than 50 percent of the actual cost.
7. Operating expenses include compensation to tenants for residential space the release and termination of lease due to living space or room overhaul rebuild economic activity. "
11. Add to article 12, the second paragraph after the words "Member States" with the words "or of the European economic area".
12. Supplement article 13, fourth paragraph after the words "Member States" with the words "or of the European economic area".
13. in article 17: Add to the tenth and eleventh subparagraph after the word "operator" with the words "personal business (including farmers or fishermen holding)";
Supplement 11.2 part after the word "operator" with the words "individual entity (also a farmer or fisherman's farm)";
Supplement 12.1 part after the word "businessman" with the words "individual company (also a farmer or fisherman's farmstead)".
14. Article 18: replace the first paragraph, the words "and the number of taxation years up to February 1, the words" and the number "with the Declaration, but no later than the pēctaksācij April 1 of the year";
replace the third paragraph, the words "each time a quarter of tax advance amount, if the State revenue service territorial institution otherwise" with the sentence "If the State revenue service territorial institution otherwise, no later than 15 March, payable in advance the amount of the duty is the fourth part of the year in the pirmstaksācij tax expense amounts, but not later than 15 may, not later than august 15 and no later than 15 November the Securities and the amount of the advance payment is the fourth part of a taxation year tax expense amount. ";
replace 4.1 part names and numbers "sole proprietor who operating income calculated in accordance with article 11.1 of law second, third and fourth subparagraphs, and in this Act referred to in article 11.2 the taxable person" with the words "person who sort of double-entry accounting system".
15. Article 19: the third paragraph be supplemented after the number and the words "15 days" with the words "this Act";
5.1 and 5.2 in part to replace the word "foreign" with the word "Foreign";
Supplement 6 sixth point after the words "Member States" with the words "or of the European economic area" and replace the words "not used" with the words "or spouse" is not used.
16. Article 20: replace the third subparagraph, in the introductory part, the words "foreign" with the word "Foreign";
replace the third subparagraph in paragraph 1, the word "company" with the word "company";
adding to the third subparagraph of paragraph 3, after the words "Member States" with the words "or of the European economic area".
17. Replace article 22, part number 3.1 "15" with the number "30".
18. Replace article 26, first paragraph, the number "75" with the number "79" and the number "25", with the number "21".
19. Replace article 27, first paragraph, the word "business" with the words "economic activity".
20. in article 28: turn off paragraph 1, the words "or statement";
to supplement the article with paragraph 8 by the following: ' 8) within five working days from the date of conclusion of the contract, as well as from the expiry date of the contract, to inform on the State revenue service territorial institution, if he's operating income determined in accordance with article 11 of this law for the twelfth. "
21. off the second paragraph of article 29, the words "tax increase demanded unless according to the Bank of Latvia established the refinancing rate and".
22. Article 31: turn off in the first paragraph, the words "no increase in the amount of tax paid (principal sum increase) money in accordance with the provisions of the second subparagraph";
to turn off the second part.
23. Article 31.1: exclude words in the first paragraph and "the outstanding tax amount increase (increase of the principal sum) in accordance with article 31 of this law the provisions of the second paragraph and";
replace the second paragraph, the words "and the number calculated in the outstanding tax amount increase (increase of the principal sum) in accordance with article 31 of this law the provisions of the second paragraph, and" with the word "calculated".
24. in article 31.2: turn in the second paragraph, the words "the outstanding tax amount increase (increase of the principal sum) and the";
in the fourth paragraph, replace the words "calculated (missing) not paid tax amount and increase the fine, according to the Bank of Latvia established refinancing rate" with the word "calculated".
25. replace the second paragraph of article 31, the words "calculated (missing) not paid tax amount and increase the fine, according to the Bank of Latvia established refinancing rate" with the word "calculated".
26. Express article 32 the following: ' article 32. The employer (the income of the paying agent) the liability for other breaches of tax law

1. For the informative declarations, this law, article 17 of the sixth, seventh, eleventh and 11.1 and article 29, first paragraph, point 5 and 6 set out in the report, submitting or not submitting to, are not subject to statutory deadlines, the employer (the income the paying agent) apply to the administrative offences code of Latvia in particular.
2. If the payer is not informed within the State revenue service territorial institution, in accordance with article 28 of this law, paragraph 8, and from the income tax is not withheld in accordance with article 17 of this law the tenth part of paragraph 7, it is considered that the person not registered economic activity and then apply the law "About taxes and duties" in a certain responsibility. "
27. in article 32.1: turn off the first part;
make the second paragraph by the following: "2. If the fault of the person is damaged or lost, and it is necessary to issue a new notebook, the notebook issue again is 10 lats. The book repeatedly issued free of charge, if the payer shall submit to the institution of the country of advice that is lost or damaged in a natural disaster or other emergency. ";
to supplement the article with the third part as follows: "3. the content of the Declaration, article 17 of this law, the eleventh and 11.1 9.1 part, article 18 of the sixth paragraph and article 28 of the notification provided for in paragraph 7, submitting or not submitting subject to statutory deadlines, the payer of the Latvian administrative violations applicable code of responsibility."
28. the express article 38, second subparagraph by the following: "2. the enforcement of this law, the annual income declaration (tax return) and informative declaration (statement, statement and other legal documents required for application) form form and their execution order is determined by the Cabinet of Ministers."
29. the transitional provisions be supplemented by 29., 30, 31, 32, 33, 34 and 35 points by the following: "29. If the individual company (farmers or fishermen holding) Re-register on the individual merchant, the sole proprietor is entitled to take over the individual company (farmers or fishermen holding) pirmstaksācij period of losses and cover them in accordance with the procedure prescribed by law.
30. the share of the pension to be repaid which is paid in accordance with the law "on State pensions" transitional provisions 47, with individual income non-taxable refundable minimum pension costs apply as follows: instead of 1) if the pension from 1 January 2000 up to March 19, 2002 non-taxable minimum for the application in accordance with this law, in article 13, first paragraph, point 2, the tax-exempt amount is refunded part of the pension;
2) if retirement from 1 January 2000 up to March 19, 2002 non-taxable minimum for the application in accordance with this law, in article 13, first paragraph, point 3, redeemable share of pension applied to non-taxable minimum proportion to be determined as the difference between 2000 and 2002, 2001 taxation year of the non-taxable minimum pension amount and the respective tax year taxable pension applied the non-taxable minimum.
31. If the taxable person receiving the repaid part of the pension, which is paid in accordance with the law "on State pensions" transitional provisions 47, 2000 or 2002., 2001 tax year was entitled to use this law, in article 13, first paragraph, point 1 or 4 benefits and paying the payroll tax booklet was submitted to the pension costs (State social insurance agency), to pay off part of those pension benefits apply to 2000. in 2001 and 2002 taxation year. to the extent specified.
32. If the taxable person receiving the repaid part of the pension, which is paid in accordance with the law "on State pensions" transitional provisions 47, 2000 or 2002., 2001 tax year was right on this law, laid down in article 10 the eligible expenditure and were not used in full, the person is entitled to include in the statement of income for the year 2007 a part of the eligible expenditure for 2000, 2001 or 2002 tax year. ' that is not declared in the relevant year.
33. the law "on accounting" article 9 of the second paragraph of point 1 of the rules into force, but not longer than until 1 July 2007 the Cabinet of Ministers is in force July 31, 2001, Regulation No 338 of "order, the revenue and expenditure accounts income tax calculation purposes", in so far as they do not conflict with this Act.
Amendment 34 article 9 of this law, the first subparagraph of paragraph 23 of the exclusion does not apply in respect of the Foundation "Soros Foundation — Latvia" by 31 December 2006 approved projects and scholarships to be paid shall be that person paid outside work legal relationship with the Foundation "Soros Foundation — Latvia", but no longer than up to December 31, 2007.
35. Article 38 of this law Until the second part of the annual declaration of income (tax return) and informative declaration (statement, statement and other legal documents required for application) form form and execution procedures for the approval of the Cabinet, but no longer than up to 31 December 2008 is past, to this law, article 38, second paragraph, the delegation covered the basic Cabinet approved declarations overview , statement and other legal documents necessary for the application of forms and their execution procedures. "
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.