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) the following amendments: 1. Replace the entire law, the word "Finance" with the word "financial".
2. Article 3, third paragraph: Add to paragraph 4 after the words "or the Board" with the words "irrespective of whether the income is received from the Republic of Latvia registered companies or other companies who are not residents of the Republic of Latvia";
Add to part with 9.1 points as follows: ' 91) income from growing sales of the forest and timber sales; ".
3. in article 8 the third paragraph: make paragraph 1 by the following: "1) income from individual work contracts, traders and brokers activities;"
Add to paragraph 2 by the words "tax item" with the words "and the income from the activities of individual operators";
make paragraph 3 by the following: "3) income from partnerships, partnerships and distributed agricultural service cooperative society surplus;".
4. in article 9: to 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 dividends paid from companies of the Republic of Latvia or the Corporation's profit and resident in a Member State of the European Union — the Corporation's profit, excluding dividends from non-residents in other countries and domestic businesses that do not pay corporate income tax, as well as of those companies using the law "on foreign investments in the Republic of Latvia" benefits or other laws of the Republic of Latvia in certain corporate tax breaks, or analogs in the Member States of the European Union of certain income tax incentives in the year of the Declaration of dividends or in the previous year; ";"
make the third subparagraph by the following: "3. the provisions of this article shall not apply to non-residents of Latvia earned income."
5. Replace the third paragraph of article 10 of the numbers and the words "paragraphs 4 and 5" with numbers and words "4, 5 and 6".
6. in article 11: Express 1.1 parts of the second sentence as follows: "economic activity also includes the performance of the contract with the company's activities, professional activities, real estate management, traders, brokers and individual trader's activities, as well as natural persons individually owned company (also a farmer and fisherman's farm) activities.";
make the third subparagraph of paragraph 7 as follows: "7) State social security payments for employees, as well as according to article 8 of this law the fifth part of employees paid life insurance (with the cumulation) amounts of premiums and contributions to private pension funds under the licensed pension plans and life, health and accident insurance (without funds accrual) bonus amount;";
Supplement third with 7.1 points as follows: ' 71) compulsory insurance premiums payable on fixed assets used in the business; "
make a tenth as follows: ' 10. If a sole proprietor or a natural person individual owned company (also a farmer and fisherman's farmstead) is registered and located in accordance with the law on regional development within a particular area and assisted its economic development project in conformity with the development programme of the territory is the decision of the Cabinet of Ministers in the order, such natural persons tax year operating losses incurred during a period when the territory concerned has special assisted area status , covered in chronological order from the next six tax year taxable income of economic activity. The revenue as well as expenditure and cost is determined according to the provisions of this article. "
7. To supplement the law with 11.1 and 11.2 of the article as follows: "article 11.1. Individual merchant operating income determination 1. Sole proprietor, whose operating income is less than 45 000 dollars, operating income calculated in accordance with article 11 of this law or, in accordance with the second, third and fourth, if he is chosen for the sort of accounting the double entry system.
2. a sole proprietor who's operating income in the year of pirmstaksācij exceeded the 45 000 dollars, operating income calculated in accordance with the law "on enterprise income tax", chapter II.
3. the individual economic operator applied to the law "On enterprise income tax" the provisions of chapter II the determination of taxable income for five years in a row, whether or not in any year of this period, operating income is less than 45 000 lats. If the five-year period in the last year the individual operator's operating income is less than 45 000 lats, sole proprietor in the next tax year can start calculating taxable income in accordance with the first paragraph of this article.
4. A natural person in the taxation year in which it launched the activities of the individual merchant, this activity income calculated by applying the first or the second part of its forecast for tax year revenue from the individual economic operator's business activity.
5. the natural person whose tax year are registered in the commercial register as an individual merchant, operating income for the taxation year is calculated according to: 1) the first part of this article, if that person has been pirmstaksācij in the year of the personal income tax on the property owned by the individual in the company income;
2) the second subparagraph of this article, if that person is the individual owned company pirmstaksācij has been a year of corporate taxpayers.
 
11.2 article. Special provisions for natural persons — the individual company (also a farmer and fisherman's farm) owner-operating income determination

A natural person whose individual owned the company (also a farmer and fisherman's farm) tax year income is less than 45 000 lats, but which my company (also a farmer and fisherman's farm) for the sort of accounting has chosen a double entry system, operating income calculated in the same manner as the individual merchant who meets the same conditions, in accordance with article 11.1 of the Act the second, third and fourth paragraph. "
8. Article 13: Supplement to article 1.1 part as follows: "1.1 the first subparagraph of paragraph 3 in the non-taxable minimum is applicable also to pension received from abroad (applying it together from abroad received pensions and pension granted or recalculated after January 1, 1996, according to the law" on State pensions ", or retirement pension, or a special public pension in accordance with the laws of the Republic of Latvia).";
to complement the fourth paragraph after the words "tax relief" with the words "excluding non-residents, which is paid in accordance with the laws of the Republic of Latvia are granted pension".
9. To make article 14, the third subparagraph by the following: "3. If the person documents showing eligible expenditure, is submitted by the State revenue service territorial institution, they are taken into account only in respect of a period not exceeding one pirmstaksācij."
10. Add to article 15, under the fourth subparagraph by the following: "4. This law article 3, third paragraph 7.1 above income if the income of the paying agent in accordance with article 17 of the law, and the twelfth part of the withholding tax income 12.2 costs place are suitable for 2 percent rate from the amount of the compensation paid.
11. in article 17: replace the third subparagraph of paragraph 1, the words ' residing in the Republic of Latvia persons "with the words" residents "of the Republic of Latvia;
Replace paragraph 2 of the third paragraph, the words "in respect of a given calendar month pay social tax (State social security payment) amount" by the words "article 10 of this law is provided for in the second subparagraph the amount of eligible expenditure";
the third part of the present paragraph 3 by the following: "3), non-residents of the Republic of Latvia: in calendar, monthly income deducted from this law, article 10, first paragraph, 1, 5, and 6. the eligible costs referred to in paragraph 1. ';
replace the twelfth part numbers "4, 6, 8." by the numbers "4, 6, 7.1, 8, 9.1";
Add to article 12.2 and 12.3 of the part as follows: "a natural person – resident 12.2, which is operating the reviewer, of this law, article 3 of part 1., 2., 3., 7.1, 8, 9, 11 and 12 above income tax deducted income costs and contributions in the budget at the time not later than the month following the income the cost of the fifth date of the month, if these payments are related to the economic activities carried out by the residents and are taken into account determining taxable income, as well as the issue of proof of non-residents in the Republic of Latvia in the tax year the income and paid income tax.
12.3 partnership (partnership) calculates the tax from this law, article 3, paragraph 5 of the third part of the income referred to in that includes partnerships (partnerships) – non-resident member of the tax period due to profit after taxation period for public approval of the annual report, and withholding tax paid into the budget of the 15 days of partnerships (partnerships) Declaration in accordance with the law "on enterprise income tax" article 22 eighth. "
12. Article 18: Supplement to article 4.1 of this part: "4.1 sole proprietor who's 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 tax year advance payment shall be determined in accordance with the law" on enterprise income tax "article 23. The advance payment shall be made to the 15th of each month. ';
make the second sentence of the sixth paragraph the following wording: "the basis for such reduction has notice of the withholding tax in accordance with this law, the provisions of article 17 income paying agent shall submit to the State revenue service territorial institution.";
Supplement to the eighth article as follows: "8. the natural person who, in the year of the pirmstaksācij have been the individual business owner and which tax year is registered in the commercial register as an individual merchant, tax year make advances."
13. Supplement article 19 with 5.2 part as follows: "5.2 foreign taxable persons (non-residents) who derive income in Latvia, of which tax is payable in regard to order, but in the tax year to earn such income ceases or derive income paid once and stop at the economic links with Latvia, shall submit a declaration within 30 days after the end of the generation of income."
14. Express article 20 the third part as follows: "3. the foreign taxable person (non-resident) Declaration need not be submitted except when non-residents: 1) receives this law article 3, third paragraph 7 and 9 income referred to in paragraph 2 as well as article 3 of this law a third of income referred to in paragraph 1 from gainful employment the employer who is not a resident of Latvia or who does not have permanent representation in Latvia or get this law article 3, third paragraph the income referred to in paragraph 4 of the companies not resident in the Republic of Latvia;
2) receives this law article 3, third paragraph 7.1 income referred to in paragraph 1 from persons other than those referred to in article 17 of this law in part "12.2
15. Replace article 23, first paragraph, the words "forward the corrected declaration in person" with the words "corrected declaration, together with an indication of the errors of the payer sends the person".
16. Make the article 26 as follows: "article 26. 1. Tax Division of tax amount (except patentmaks), after deduction of article 19 of this law in the fourth paragraph, the said amount will be credited in the following budget breakdown: 71.6 percent — paying) the residence of the municipal budget;
2 percent State 28.4) General.
2. the order in which the tax amount and the principal sum of the increase, late and fines in the first paragraph in the specified distribution is counted in the budget shall be determined by the Cabinet of Ministers. "
17. the express article 37 as follows:

"article 37. Income tax payer's code All persons whose place of residence is in Latvia declared and which generate income, are recorded in the State revenue service, and they are assigned a tax payer's code that matches the individual ID number under which that person is registered in the population register of Latvia, or the taxpayer's code by the State revenue service, where a person is not registered in the population register of Latvia. "
18. transitional provisions be supplemented with 10, 11, 12 and 13 as follows: "10. amendments of this law article 8, paragraph 3 of part three is applied to the tax year beginning in 2003.
11. Amendments to this law, article 9 paragraph 2 of the first subparagraph shall enter into force with a special law.
12. Natural persons individual company (also a farmer and fisherman's farmstead) who registered and operate in accordance with the law "About specially assisted regions ' specific special assisted area and for which the development of the project in conformity with the development programme for the region is the decision of the Cabinet of Ministers in the procedure prescribed by this Act continue to apply article 11 the tenth, while according to the law on regional development in accordance with the law" About specially assisted regions ' particular assigned region supported status.
13. this law, article 26 provided for in the second paragraph of the entry into force of the day, but not longer than until 1 July 2004 shall be valid for the Cabinet of 21 April 1998, the Regulation No 145 "order in which personal income tax payments are credited to the municipal budget", to the extent they do not conflict with this Act. "
The law shall enter into force on January 1, 2004.
The law adopted by the Parliament in 2003, 11 December.
State v. President Vaira Vīķe-Freiberga in Riga 2003 24 December Editorial Note: the law shall enter into force by January 1, 2004.