Clarifies 14.01.1997., Latvia Journal No 12/13/14/15 (727/729/728/730), the Parliament 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) the following amendments: 1. Replace the entire text of the Act, the word "worker" (fold) with the word "employee" (fold).
2. Supplement article 3, third paragraph 9 with the following: "9) personal palīgsaimniecīb, backyard farms, as well as farmers and fishermen, farm income from agricultural production."
3. in article 8: Supplement third part with a new paragraph 10 by the following: ' 10) regardless of their pension costs source; "
consider the current third paragraph 10 of part of paragraph 11.
4. Article 9, first paragraph: make points 5 and 6 by the following: "5) lotteries and gambling winnings, not exceeding the costs associated with the acquisition,-cabinet order;
6) income from State and local government bonds; "
Add to paragraph 16, after the word "compensation" with the words "laws and".
5. in article 10: to supplement the first part of paragraph 5 with the following: "5) according to the law on private pension funds in established private pension funds made contributions.";
make the second paragraph by the following: "2. Income Before taxation of employee payroll tax from the monthly income amount is deducted in the first part of this article 1 and 5 above payments."
6. in article 11: to supplement the first subparagraph following the words "farmers or fishermen holding" with the words "Attorney and notary activities";
Supplement third with 14 points by the following: "14) the security forest renewal and forest restoration costs Cabinet.";
to supplement the article with the seventh subparagraph by the following: "7. in accordance with article 17 of this law the tenth part of the provisions of paragraph 6 of the order in which timber and growing forest sales taxable income shall be determined by the Cabinet of Ministers. Withholding tax from scrap metal sales income before tax calculation of payable amounts deductible by the preparation and sale of scrap-related expenditure, applying the margin of 15 percent of the amount to be paid. "
7. Supplement article 12 with a third part as follows: "3. not referred to in this article shall not apply to the minimum taxable persons subject to this law, in article 13, first paragraph, 2, 3, and 4 non-taxable under paragraph minimum."
8. in article 13, first paragraph: make point 2 as follows: "2) people with pensions granted before 1 January 1996 pursuant to the law" on State pensions ", the tax-exempt amount is the amount of the pension.";
Add to part with points 3 and 4 by the following: "3) people with pensions granted after January 1, 1996, according to the law" on State pensions ", the non-taxable minimum for these pensions is 1200 dollars per year;
4) persons who under the law are recognised as disabled or politically repressed persons, additional tax relief and the procedures for their implementation shall be determined by the Cabinet of Ministers. "
9. Turn off the third subparagraph of article 15.
10. in article 17: make the tenth part of paragraph 3 as follows: "3) remuneration, which is paid to procurement and other organizations on wild game hides and meat, game, hunting trophies, zoobarīb and other products from the wild, except for the wild mushroom and Berry products;";
Supplement to the tenth paragraph 5-paragraph 10 by the following: "5) pension;
6) timber and growing forest and scrap sales income;
7) revenue from economic activities performed by the individual who is not registered in your personal work or individual business, farmers or fishermen also holding, with the exception of agricultural products;
8) in the event of donations in cash and in other cases;
9) sickness benefits;
10) lotteries and gambling winnings of which exceeds 500 lats. ";
the twelfth, expressed as follows: "12. Article 3 of this law, the third part 1., 2., 3., 4. and 5. income referred to income tax is withheld on income paid and paid no later than the budget revenue expenses month following month 5. date."
11. in article 18: turn off the fourth paragraph, the words "which is the income tax advance payments";
Supplement to the sixth article by the following: "6. Paying the tax, calculated the amount of the advance payment in the amount of the tax cut, which, in accordance with article 17 of this law the tenth parts 6 and 7 point rules and withheld included in the budget. The basis for such reduction has notice of the withholding tax in accordance with this law, the provisions of article 17 of the payer of the income of the paying agent receives and submit to the tax authorities. "
12. Article 19: make the second paragraph by the following: "2. In accordance with this law, tax is calculated on annual taxable income total when determining the amount of economic damages cannot be covered at the expense of other forms of income, and this is reflected in the Declaration. The Declaration will show all the taxpayer during the tax period (calendar year) earnings, tax-free income, if the total amount exceeds the non-taxable minimum year. ";
Add to the second sentence of the third paragraph after the words "as patentmaks" with the words "or who withheld from his income, paying him the article 17 of this law the tenth part of these resources.";
to supplement the article with the new 4.1 part as follows: "4.1 a Person who in regard to taxation year calculated tax from operating activities, the conduct of which it is acquiring a patent, is less than a year patentmaks paid, the difference will not be refunded. ';
Add to sixth with (4) and (5) as follows: "4) withholding tax of article 17 of this law referred to in the tenth income;
5) the foreign tax paid. ";
Supplement to the eighth article as follows: "8. the farm if it without agricultural production also carry out other economic activities, you can calculate the total revenue (losses to be borne by the practice of other income). In this case, not to apply article 9, first paragraph, point 1. "
13. Make the text of article 20 as follows:

"1. A domestic taxpayer that the tax year has received income in the Republic of Latvia, the cost of which is withheld tax, and she received this law, article 9 referred to in the first paragraph of non-taxable income does not exceed the total amount of the taxation year of the non-taxable minimum amount is right not to make a declaration, if this or other laws provide otherwise. This condition applies also to cases where a domestic taxpayer during the taxation year is received in the Republic of Latvia only income, cost of which is withheld tax or only article 9 of this law referred to in the first paragraph of non taxable income that does not exceed the total amount of the taxation year of the non-taxable minimum.
2. If the domestic taxable article 19 of this law in the fifth paragraph, the deadline to make the Declaration, this is proof that the payer of the tax year received their income tax withheld in full. If the State revenue service has information that the taxpayer during the taxation year has received taxable income, the cost of which is not in place of the tax withheld not in the case of the declaration he applied this law, the penalties laid down in article 32.1.
3. A foreign taxable person is not required to submit the Declaration, except when he receives this Act 3 the third subparagraph of article 7, 8 and 9. income referred to in paragraph 1. "
14. Add to article 22 in the third part as follows: "3. If the payer in accordance with article 20 of this law, the provisions of the first subparagraph is right not to make a declaration, but according to the State revenue service, the information available to him for the applicable indirect tax calculation on the basis of the second paragraph of this article, the provisions of the State revenue service has the right to require the person submitting the Declaration."
15. Article 24: make the third paragraph as follows: "3. In accordance with the provisions of the act calculated tax be reduced by an amount equal to the tax paid abroad, if the tax paid abroad is certified with the foreign tax authorities approved the collection of documents that displays the taxable income and the amount of the tax paid abroad."
to supplement the article with the fourth paragraph by the following: "4. In the third subparagraph of the abovementioned reduction may not be greater than the amount corresponding to the calculated tax in Latvia for foreign earned income."
16. Make the text of article 26 as follows: ' 1. 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: 1) percent-28.4 special health care budget;
2 percent-payer 71.6) residence of the local government and local government financial equalisation fund Cabinet.
2. Tax amount also includes a tax debt, the tax increase, according to the Latvian Bank refinancing rate late and interest on tax law violations. "
17. Article 29: adding to the first part of paragraph 3-5 by the following: "3) to store the calculation of wages and the cost of supporting documents law" on accounting "in article 10;
4) for each month the calculated, and budget ieskaitītaj the evaded tax amount to submit a report to the State Revenue Service Department at your location no later than the 15th day of the month;
5) for nonresident withholding tax from income, of which in accordance with article 17 of this law in the twelfth part must withhold tax cost instead submit the report to the 15th day of the following month. ";
to complement the second paragraph after the words "shall be prohibited" by the words "except for the tax increase demanded unless according to the Bank of Latvia established the refinancing rate and penal sanctions, which the employer must pay for tax law violations.";
to supplement the article with the third part as follows: "3. This and 31, 31.2, 32, the provisions of article 33 shall also apply to the income of the paying agent person – that costs from income under this Act or other tax laws should be withheld income tax cost."
18. Article 31 of the expression by the following: ' article 31. The employer (the income of the paying agent) liability for tax paid in the period 1. If the employer (the income the paying agent) of the employee's wage (income payable to a person), withholding tax article 17 of this law in the fifth subparagraph is not lodged within the time limit set in the budget, he forecast the contribution unpaid tax (principal sum), unpaid taxes in the amount of increase in the amount of (the increase demanded unless) the money in accordance with the provisions of the second paragraph and the late according to the third paragraph of this article.
2. the term of this law the withheld, but article 17 in the fifth and twelfth part within the time limit set in the budget not paid tax amounts (principal sum) is increased, according to the Bank of Latvia established refinancing rate throughout the period of delay for each overdue day of payment.
3. the time limit For withholding, but article 17 of this law in the fifth and twelfth part within the time limit set in the budget without the tax amount (principal sum) is calculated from the time the late outstanding principal sum of 0.1 percent per day overdue tax payment. "
19. To supplement the law with 31.1, 31.2 and 31.3 of the article as follows: "article 31.1. The taxpayer's liability for tax paid in the period 1. If the payer of this law article 18, third subparagraph, the time limits do not make advance payments of tax, he missed the extra tax payment installment not paid tax in the budget an increase in the amount of (the increase demanded unless) in accordance with article 31 of this law the provisions of the second paragraph and the delay money according to this law, article 31 of the rules of the third part.
2. If the payer article 19 of this law in the third paragraph, not paid within the time limit set in the budget summary in order of estimated tax, for him, starting with the next date for payment the following day is 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 the delay money according to this law, article 31 of the rules of the third part.
Article 19.4. Employer (income of the paying agent) responsibility for incomplete tax withholding

1. If the employer (the income the paying agent), he is not this law, after a tax of all personal taxable income and paid without withholding tax amounts, from which, according to this law the tax is paid at the place of forfeited, they must pay the tax amount and the total fine amount missing tax.
2. If the employer (the income the paying agent) is after a while from the employee's wage (income payable to a person), as well as tax withholding tax amount has not been lodged with the budget, the outstanding tax amount increase (increase of the principal sum) and late payment is calculated for the period beginning with the day following the day on which the tax was levied and paid in accordance with the budget law article 17, fifth and twelfth part.
3. the employer (the income the paying agent) if he's up to the tax administration check (check log) even have committed tax clarification, ate and lodged a missing amount of tax in the budget, do not apply the first subparagraph in fine and laid down in the second part of the delay, but not more than once per tax year.
4. Employer (income paying) not paid (missing) the amount of tax and penalties payable within 30 days from the day of receipt of the decision of the tax administration about it. If payment is not made during this period, for each delayed payment of day, starting with 31st day after receipt of the decision of the tax administration, calculate (missing) not paid tax amount and increase the fine, according to the Bank of Latvia established the refinancing rate, late of the outstanding (missing) the amount of tax and penalties.
Article 19.4. Payer's liability for the taxable income reduction 1. If the payer, he claims, this law did not calculate tax on all taxable income, which according to this Act is taxable, except for income from which tax was deducted the cost of the employer or other person, he has to pay the missing amount of tax and penalties for missing tax amounts.
2. Person (missing) the outstanding amount of tax and penalties payable within 30 days from the day of receipt of the decision of the tax administration about it. If payment is not made during this period, for each delayed payment of day, starting with 31st day after receipt of the decision of the tax administration, calculate (missing) not paid tax amount and increase the fine, according to the Bank of Latvia established the refinancing rate, late of the outstanding (missing) the amount of tax and penalties.
3. If the employer (the income the paying agent) during the taxation year after the tax from the taxpayer's taxable income, which in accordance with the provisions of the law it had to withhold income cost instead, has terminated its activities in Latvia, is wound up or any other reason is not found in the taxation year, the amount of the tax return is due for the same person, except when the company is wound up pursuant to the legislative provisions and tax liability under the Act was deleted "taxes and fees" For article 25. "
20. Article 32 of the expression by the following: ' article 32. The employer (the income of the paying agent) responsibility for any infringements of the law 1. the notification provided for in this Act and not submit the card (do not send) the tax authorities for the employer (the income the paying agent) are fine 10 lats for each legal document not sent in due time (or for each person). Repeated in the amount of the fine is increased three times.
2. On the employment of persons who have not submitted a notebook or card or work permit are not shown, with the exception of this law article 5, second paragraph, provided the employer fines are imposed on the 100 lats for each person.
3. Article 29 of this law in the first part of the reports provided for in paragraph 4 shall not submit employer (the income the paying agent) are fine for five lats for each person that calendar month was paid to income not being presented in the report.
4. If the employer (income paying) this law, article 29, first paragraph, point 5 is not submitted within the time limit set in the withholding tax from income paid to non-residents, the proceeds of which will cost this had to forfeit his penalties are imposed on the 100 lats for each report submitted. "
21. To supplement the law with article 32.1 by the following: ' article 32.1. Payer's liability for other breaches of tax law for the taxable person to whom the provisions of this Act is required to submit the Declaration, Declaration in the event of non-compliance with the time limit is imposed three fines in the amount of interest income amount from which tax is not withheld during the year if the tax declaration is submitted to the entire pēctaksācij of the time of year when it is in accordance with the requirements of the law had to be done. "
22. Article 33 of the expression as follows: "article 33. The time limit for payment of unpaid tax collection of the non-contentious procedure within the outstanding tax amount recovered in non-contentious procedure according to the law "About taxes and duties" rules. "
23. To supplement the law with the transitional provisions for the following: "1. the transitional provisions in the 1996 December 19, amendments to the Act in the second paragraph of article 19 and article 20 applicable also in the 1996 income declaration. The recipient of the pension, if it is not received in 1996, other non-taxable income or the total amount does not exceed the specified taxation year of the non-taxable minimum amount, the application of the amendments to the law in article 20, it is right not to make a declaration.
2. The Cabinet within 15 days of the promulgation of the law to approve the 1996 income declaration form.
3. the law "on personal income tax" article 11 provided for the seventh part of the Cabinet of Ministers regulations for the entry into force of the withholding tax, from the timber and growing income from the sale of the forest before the calculation of tax payable amounts are deductible with timber and growing forest preparation and sales related expenditure, applying the margin of 25 percent of the amounts to be settled. "
The law shall enter into force on 1 January 1997.
The Parliament adopted the law of 19 December 1996.
The President g. Ulmanis in Riga 1997 3 January