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) as follows: 1. Article 2, second paragraph: replace the words "the special budget, which is part of the national budget" with the words "the national budget";
to turn off the word "special".
2. in article 3: make the seventh, eighth and ninth subparagraph by the following: "(7) the tax period is the company's accounting year in accordance with the law" on accounting ", the law" On the annual accounts of credit institutions, the law or "insurance company and under the supervision of the law.
(8) Notwithstanding any provisions of this law, corporate income tax is deducted at the rate of 25 percent of all payments to be residents or non – residents of Latvia for permanent representation in legal costs, physical and other persons who are, or have been created by the Cabinet of Ministers regulations established in those low taxes and free countries or territories, including payments to the representatives of those persons or third party bank accounts and payments made in settlement of mutual clearing the way except for such payments to persons who are, or have been established for established free and low taxation countries or territories: 1) Latvia dividends paid by resident;
2) percent of the Republic of Latvia registered credit institutions for depozītnoguldījum and checking account balances, if these percentages are paid out according to the established general credit rate for depozītnoguldījum and settlement account balances;
3) payment for delivery of goods, if the goods are tax free and low taxation countries or areas of origin;
(9) the State revenue service has the right to allow any of them to withhold tax payments, from which this article is the eighth part of the withholding tax, if it is paying reasonably prove that those payments are not made with a view to reducing the taxable income of the payer and not to pay or reduce the taxes payable in Latvia. "
Add to article 10 by the following: "(10) the eighth part of this article, payments listed in tax costs of which site is not forfeited after a 25 percent rate, and payments of which in accordance with the provisions of part 9 shall be authorised not to withhold tax, applicable in the fourth paragraph of this article."
3. Supplement article 4 with 1.1 part as follows: "(11) public organizations and associations, religious organizations, as well as other taxable persons that were not subject to the law on annual accounts of credit institutions, the law" or the insurance company and the supervisory law and which derive revenue from operating activities, and are not covered by article 2 of this law, the second, third and fourth, taxable income is the difference consisting of income from economic activity and with the revenue generating costs and which is adjusted in accordance with this law. "
4. in article 6: make the first part of paragraph 2 and 3 as follows: "2) fines, penalties and fines the amount used, the penalties (the principal sum, late of the increase) the amount calculated in accordance with the law on taxes and duties";
3) not unfit or izlaupījum amounts of shortfall of companies whose capital the State or local government part is greater than 50 percent, as well as the institutions financed from the budget; "
Add to the first subparagraph of paragraph 5, after the words "amounting to" with the words "and 25 percent of spending on light passenger vehicles, except in specially-equipped passenger cars, use";
make quarter point 2 as follows: "2) for amounts paid in the form of grants as State aid to agriculture or the European Union's support for agriculture and rural development;"
to complement the fourth part with point 7 and 8 as follows: "7) for the delay in money (tax related principal sum) amounts of tax reduction period reduced, based on the decision of the Ministry of Finance on the overdue State budget should include the extension of tax payment term up to one year or up to three years, or deleted in accordance with the law" About taxes and duties "in article 25, second and third subparagraph;
8) for educational institutions free of charge the computing equipment, it equipment, including the printing devices, the residual value of the company's financial accounting at the time of their withdrawal. "
Add to article 5.1 part as follows: "(51) in determining the taxable income not taken into account in the profit and loss statement shows the company's interests in values increases or reductions of subsidiaries or associated company in equity. Taxable income increase of revenue from participation in subsidiary or associated company, who is not a resident or who apply the law "on foreign investments in the Republic of Latvia" in certain corporate income tax incentives or other law of the Republic of Latvia enterprise income tax rebate, if that part of the increase in the value of the participation and the difference between the calculated the dividend is not included in a reserve. ";
express the sixth and seventh subparagraph as follows: "(6) in determining the taxable income, the company's profits may be reduced (subject to the conditions mentioned in the seventh paragraph) for the payment of insurance premiums according to the law" on insurance ", which made the insurance companies set up under the supervision of insurance undertakings and their laws, and their staff in good private pension funds contributions made according to the law" on private pension funds. " These terms also apply to foreign insurance companies for the payment of insurance premiums on the insurance services that do not provide insurance companies registered in Latvia.
(7) in determining the taxable income, reduced employee benefit employer contributions made to the private pension funds under the licensed pension plans and the payment of insurance premiums for employees ' life, health or accident insurance, which together do not exceed 10 per cent of the insured persons and the pension plan members estimated pay during the tax period, when the following conditions are met: 1) the duration of the life assurance contract with an accumulation of assets in respect of each insured person not less than five years;
2) duration of life, health and accident insurance contract without the accumulation of assets is not less than one year;
3) life, health and accident insurance, the provisions of the Treaty provides that the insurance reimbursement for claims paid to the insured person (or their beneficiaries) other amounts associated with the operation of the agreement or its termination, the employer costs, and does not provide for the issuance of loans to the insured persons;
4) employer pēctaksācij period on the first day of the second month of no tax liability for prior periods. ";
replace the words "eighth national statistical Committee" with the words "Central Administration of statistics";
to make the eighth part of the last sentence by the following: "these provisions do not apply to interest payments on loans and credits in the Republic of Latvia registered credit institutions. ';
turn off the thirteenth part.
5. Add to article 10 the third paragraph with the second sentence by the following: "shall not be taken into account Also 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."
6. To express the text of article 11 by the following: "(1) the domestic corporate taxable income reduced by the company's profit and loss statement showing the amount of dividends receivable.
(2) a domestic company's taxable income is increased by: 1) amount of dividends receivable from non-residents;
2) part of the amount of dividends receivable from companies that apply the law "on foreign investments in the Republic of Latvia" in certain corporate income tax incentives or other law of the Republic of Latvia enterprise income tax rebates, and which corresponds to the share of profits by applying the aforementioned statutory corporate tax breaks and incentives, has not been subject to corporate income tax. "
7. Article 13: make the first part of paragraph 1 and 2 as follows: "1) fixed assets divided into five categories and determine the rate of taxation period depreciation percentage: Kate-the type of fixed asset depreciation rate percentage 1 5 crews building, shipbuilding, permanent plantings 2 10 percent of railway rolling stock and technological equipment, sea and river fleet, fleet and the port of technological equipment, energy equipment 3 35 percent of computing equipment and it equipment including printing facilities, information systems, computer software and data storage equipment, communications equipment, copiers and equipment 4 20 percent

The other fixed assets, other than fixed assets referred to in category 5 of 5 7.5 percent of oil exploration and extraction platform along with the functioning of the installations required who is on these platforms, oil exploration and mining ships 2) accounting of the fixed assets depreciation is calculated in accordance with this article shall keep: (a)) for buildings and parts of buildings, for permanent plantings, oil exploration and extraction platforms, oil exploration and mining ships as well as for fixed assets that economic activity are not used or are used only partially,-for each asset individually, b) for the part referred to in paragraph 9 fixed assets acquired or created during a period when the region was granted to the special status of the region, supported-separate from other assets in the category concerned, c) for the other fixed assets-total of all categories; ".
8. in article 14: adding to article 1.1 of the part as follows: "(11) the individual (family) Enterprise (also a farmer or a fisherman holding) owner pirmstaksācij period on the income paid individual income tax, is entitled the previous taxation period operating loss calculated in accordance with the law" on personal income tax ", cover the chronological order of this law in accordance with the procedure laid down in the company's taxable income calculated in the law" on personal income tax "prescribed in the loss carry-forward period that is, of the three in a row following the tax period taxable income, starting with the tax period in which the taxable person in accordance with the law "on personal income tax" was the right to bear the losses. "
make the third paragraph as follows: "(3) the second paragraph of this article shall not apply in cases where an undertaking in which a change of control occurred, five tax periods after the change of control keeps the previous operating type that corresponds to the type of company operating two taxation periods before the change of control.";
Add to sixth with the following content: "1.1 of this article referred to the tax period of losses may be covered in chronological order from the next six tax period taxable income.";
Add to article 10 by the following: "(10) if the company carried out oil exploration and mining works and its total turnover (scope), oil exploration and extraction in excess of 80 percent, in the first part of the tax period in losses can be covered in chronological order from the next 10 tax period taxable income."
9. in article 15: to complement the article after the word "each" with the words "this Act" and believe the current text of article of the first part;
to supplement the article with the second part as follows: "(2) If a company-taxable person-use corporate income tax rebates in accordance with the law" on foreign investments in the Republic of Latvia "or other laws of the Republic of Latvia, the tax provided for in this chapter are not subject to discounts except for the discount on the tax paid abroad in accordance with article 16 of this law and other donors under the discount this law article 20."
10. To supplement the law with article 18.1 as follows: "article 18.1. Tax rebate companies producing high-tech products and products tax discount for companies that produce high technology products and software products, has 30 percent of the estimated corporate income tax if the company meets the following criteria: 1 the net turnover of the company) the Cabinet of Ministers established the eligible products during the tax period of more than 75 percent;
2) the company has received ISO 9000, ISO 9001 or ISO 9002 certificate. "
11. Article 20: replace the first paragraph, the number "90" with the number "85";
to supplement the article with a new second subparagraph by the following: "(2) residents and the permanent representation of the duty will be reduced by 90 percent from the amounts donated in the Latvian cultural fund, the Latvian Olympic Committee and Latvian children's Fund.";
adding to the fourth paragraph by the word "first" with the words "and the second".
12. Article 23: make the first paragraph by the following: "(1) the company in the taxation year before the 15th day of each month (including) the national budget following the advance payment of tax: 1) for each month of the tax period the first month to month (inclusive), which is presented to the company's annual report, but no later than the date on which the company's annual report must be submitted in accordance with the law on annual accounts" -an amount corresponding to one twelfth part of the calculated tax, which, without this law, 17, 18.1, 19 and 20 article discounts are calculated for a taxation period prior to the period of pirmstaksācij and is adjusted by the Central Administration of statistics pirmstaksācij year established total consumer price index or consumer price index pirmstaksācij period, calculated by multiplying the Central Administration of statistics in certain pirmstaksācij a period of monthly consumer price indexes If the tax period does not coincide with the calendar year;
2) for each month of the tax period for the remainder of the amount laid down, the difference between the amount of tax pirmstaksācij (which is adjusted by the Central Administration of statistics pirmstaksācij year established total consumer price index or consumer price index pirmstaksācij period, calculated by multiplying the Central Administration of statistics in certain pirmstaksācij a period of monthly consumer price indexes, if the tax period does not coincide with the calendar year) and in accordance with this part, paragraph 1 the amount of taxes paid divided by the remaining number of months from the submission of the annual report to the tax period of the month the end. In determining the amount of the tax pirmstaksācij, 17 of this law shall not be taken into consideration., 18.1, 19 and 20 of the discounts provided for in article. ";
Add to article 1.1 part as follows: "(11) by the State revenue service taxpayer based application, beginning with the month in which the State revenue service has received the application, the taxpayer can designate other tax amount of the advance payment in the following cases: 1 if the net change of payer) has significantly dropped compared to the period of the pirmstaksācij period, as well as the predictable future, it-tax advance payments for the tax period the remaining months down the net sales the previous month, multiplied by the calculated tax (calculated without applying this law, 17, 18.1, 19 and 20 article tax rebates) and the net change in the period of pirmstaksācij separations;
2) if the payer is a significant change in the type of activity or expenditure and revenue (revenue and expense) structure-tax advance payments for the tax period the remaining months down the same amount, taking into account the taxpayer's reasonable estimates submitted. If paying the estimated amount of advance payments during the tax period is less than the tax calculated on the basis of the final settlement of the tax period, the difference between the advance payment, calculated after the first part of this article 1 and 2 of the method, and the advance payment, calculated using the methods referred to in this paragraph, each month is considered overdue tax payment in accordance with the law on taxes and fees ".";
Add to article 3.1 part as follows: "(31) in determining corporate income tax payments, take into account, in accordance with the Baltimore special economic zone law or Rezekne special economic zone law tax period the proposed tax relief. If the taxpayer during the tax period lose their entitlement to tax relief under those laws, the advance payment reduction amount, calculated as the difference between the amount of advance payments in accordance with paragraph 1 or 1.1 part and an advance payment of an amount established on the basis of the tax incentives in accordance with those laws, is seen as overdue tax payment in accordance with the law on taxes and fees "."
13. Turn off the article 24, second paragraph, the words "at the request of the State revenue service".
14. in article 26: replace the words "on the banks" and "insurance" with the words "in the law of credit institutions and insurance undertakings and the supervision of the law" and believe the current text of article of the first part;
to supplement the article with the second part as follows: "(2) if the amount is not deducted by the paying agent and lodged a tax in the budget article 24 of this law in the first part of the prescribed period, it shall be responsible in accordance with the law on taxes and fees". "
15. Supplement article 27 of law with the following: "article 27. Separate rules for the application of certain rules of law application procedures regulated by the Cabinet of Ministers regulations, which include the rules of interpretation and interpretative examples. "
16. transitional provisions be supplemented by the following paragraph 17: "17. Article 6, paragraph 5.1 amendments to article 11, article 13, first paragraph, point 1, and article 14, the third paragraph of article 23, as well as the 3.1 part apply, starting with the tax period, 1999."
The law shall enter into force on 1 January 2000.
The law adopted by the Parliament in 1999 of 25 November.
State v. President Vaira Vīķe-Freiberga in Riga in 1999 on 15 December