Amendments To The Cabinet Of Ministers On 4 July 2006, Regulations No 577 "law" On Corporate Income Tax "rules"

Original Language Title: Grozījumi Ministru kabineta 2006.gada 4.jūlija noteikumos Nr.556 "Likuma "Par uzņēmumu ienākuma nodokli" normu piemērošanas noteikumi"

Read the untranslated law here: https://www.vestnesis.lv/op/2015/103.15


Cabinet of Ministers Regulations No. 250 in 2015 (26 May. No 26 6) amendments to the Cabinet of Ministers on 4 July 2006, regulations No 577 "law" on corporate income tax "rules" Issued in accordance with the law "on enterprise income tax" the thirteenth part of article 22 and article 27 do cabinet 4 July 2006 regulations No. 556 the "law" on corporate income tax "rules" (Latvian journal, 2006, nr. 110.; 2010, 2011 27 No.; 2. no; 208. no 2013; 2014, 62. No.) the following amendments: 1. Complement 1.9. subparagraph after the word "achieved" with the words "from the management and advisory services in the Latvia's property and". 2. Add to paragraph 1.10 beyond words "non-resident" with the words "control and provided advisory services on the property in Latvia and about". 3. Replace the words in point and the 18.1 "fourth part" in paragraph 7 with the words and figures "fourth part 2, 5 and 7". 4. Express 18.2 1. introductory part of subparagraph by the following: "1.18.2  Table 1 in chapter I "the corporate income tax for income gained from the disposal of real property" fill (fill in if the income gained from the disposal of real property or of article 3 of the law on the part of the conditions to 4.5, part of the capital transfer, stock, transfer or other disposition of participation): ". 5. Express 18.2 3. subparagraph by the following: "18.2 3.  Table 3 in chapter II "the corporate income tax for income gained from the guidance and advisory services or from the property in Latvia" arrangements to fill: 18.2 3.1.  1. the column "income type indicates the type of transaction, the income code (7 – management and advisory services in the Latvia, 12 existing property), for which the remuneration and tax withheld; 18.2 3.2.  2. the column "income" refers to the amount of remuneration laid down in the Treaty, on the management and advisory services in the Latvia or the use of property; 18.2 3.3.  3. under "direct costs" refers to the revenue generating directly related and source documents with reasonable expenses. If expenses attributable both to provide management and advisory services or the use of property in Latvia and other transactions, the taxable income is reduced by that portion of expenditure relating to the revenue, if it can reasonably be separated (example spending extension, if provided advisory services, – this provision in annex 2.2). Asset, for which the use of Latvia has a revenue, depreciation shall be calculated in accordance with article 13 of the law rules only for those full months in which the asset is used in Latvia. Determining the net book value of the asset, which calculates the depreciation for the period in which the asset was in Latvia, the acquisition value of the asset less depreciation portion calculated in accordance with article 13 of the law, including the rules and the date that the fixed asset began using in Latvia; 18.2 3.4.  4. the column "taxable income" refers to taxable income is calculated using the formula: 2. box – box 3;
18.2 2.2.  5. the column "estimated tax by applying the 15% rate" indicates the corporate income tax (applying the 15% interest rate), which is calculated on the income gained from the guidance and advisory services or from the property in Latvia; 18.2 2.2.  6. the column "calculated tax, applying a 5% or 10%" indicates the corporate income tax (applying the 10% interest rate) calculated the revenue generated by the management and advisory services, or corporate income tax amount (application of five interest rate) calculated the revenue derived from the use of property in Latvia; 18.2 3.7.  7. the column "Paid the tax in accordance with article 3 of the law of the fourth paragraph of point 2 or 5" indicates the withholding and State budget included the corporate income tax from management and advisory services, the application of the corporate income tax rate to 10 percent from the amounts paid the non-resident, or from an existing property in Latvia's revenue for the purposes of the corporate income tax rate of five percent from amounts paid to non-residents; 18.2 3.8.  8. the column "overpayment" indicates a non-resident for the refunds corporate income tax amount, formed as the difference between withholding and State budget included the corporate income tax from gross revenues and estimated corporate income tax from income, using the formula: 5.-7. box. " 6. To make 18.3 point as follows: "at the same time with this rule 18.3 18.1 a review referred to in paragraph 1 shall submit to the non-resident: 18.3 1. national register of issued documents justifying the tax payer's signature; 18.3. the power of the original 2 that meet this rule 18.4 points in these conditions, if the review of the tax calculation shall be submitted to the authorised person; 18.3 3. If a taxable person fills this rule 18.1 review referred to in paragraph (I): 18.3 3.1. documents showing the property or shares, stock, or other form of acquisition and divestment of participation, as well as the acquisition and transfer of certified value; 18.3 3.2. documents certifying the transfer directly associated costs; 18.3 3.3. documents certifying the paid-up capital and the value of the respective investments in real estate (if any is made); 3.4. non-residents of 18.3 proof that real estate from the time of purchase is not listed as an asset (other than land) and that the information provided is true. In addition, the non-resident shall provide information about the that is publicly available to the non-resident's annual report, which is reflected in the accounts; 18.3 3.5. national tax administration statement issued to non-residents, which confirms the status of residence, from the date on which the payment was received on the estate, up to the date of issue of the certificate; 18.3 3.6 other information that affects the property or shares, stock, or other form of participatory value tax calculation; 18.3 3.7 certification that the information provided is true; 18.3 4. where a taxable person fills this rule 18.1 review referred to in chapter II: 18.3 4.1 contracts underlying transactions and payment arrangements; 18.3 4.2. documents and other information indicating that the income derived directly associated costs; 18.3 4.3. national tax administration statement issued to non-residents, which confirms the status of residence, from the date on which the payment was received until the date of issue of the certificate; 4.4. proof that 18.3 information provided is true. " 7. paragraph 53 be expressed as follows: "the application of the Act 53. Article 6, paragraph 4, first subparagraph, of the taxpayer's taxable income is increased by the amount of costs pursuant to article 4 of the law on the quarter included or to be included (such as advance payments) in the income statement, if the taxpayer does not have a non-resident from the payment after a certain extent or if payments were made via the electronic payment systems and of those charges at the time could not withhold tax in accordance with article 24 of the Act. If the tax from non-resident to the charges, which have not been or will not be included in the profit and loss statement (for example, payment is made for the acquisition of immovable property, dividends, including extraordinary dividends), not withheld, taxable income does not increase, but according to the law "About taxes and duties" of the calculation of the State budget money not to the amount of the tax paid. Tax on the amount concerned, in application of article 3 of the law on the fourth, eighth and 8.2 the rate laid down in part to pay even if the taxpayer is exempt from corporate income tax evasion. " 8. Supplement with 66.1 points as follows: "the application of the law of 6 66.1 article fifth, taxable income shall be increased or reduced by other assets invested in the company's share capital increase or reduction in the value of the amount of the revaluation occurred before the investment in another company, even if the asset value is not included in the income statement at the time of the exclusion (article 6 of the law on the part of the fifth application example-annex 4.1)." 9. Add to 129.1 points behind the words "duty of" with the words "control and provided advisory services in the Latvia's use of property, as well as". 10. Express 2.1 annex by the following: "2.1 Annex Cabinet 4 July 2006 regulations no 556 payee name registered office registration certificate number and date of issue of the review of the corporate income tax calculation for non-resident i. corporate income tax for income gained from the immovable property seizures table 1

Real property cadastre number revenue from real estate disposals or participatory ** transfer remainder immovable property value after deduction of the tax depreciation (table 2, column 6) or the participation of the acquisition value of shares with Other real estate or participatory ** disposal directly associated costs taxable income (2-3-4.) calculated tax, applying the 15% rate (column 5 x 0.15) calculated tax, applying the 2% rate (box 2 x 0.02) tax paid in accordance with article 3 of the law of the fourth paragraph of section 7 (8-6 overpayment. box) 1 2 3 4 5 6 7 8 9 real estate residual value calculation in table 2 the taxation period, the value of the immovable property real estate capital cost Value from which to calculate the taxation period depreciation (2 + column 3) taxation period depreciation (box 4 x 0.1) net book value of the real property after depreciation deduction of the tax period (2 – 5.) 1 2 3 4 5 6 II. Corporate income tax calculation income gained from the guidance and advisory services in the Latvia's property or from the use of table 3 income type * income expenditure directly related to taxable income (box 3-2) the calculated tax, applying the 15% rate (box 4 x 0.15) calculated tax, applying a 5% or 10% interest (box 2 x 0.05 or 0.1) tax paid in accordance with article 3 of the law of the fourth paragraph of point 2 or 5. Overpayment (5.-7. box) 1 2 3 4 5 6 7 8 notes. 1. capital shares, shares or other forms of participation be forfeited in accordance with article 3 of the law on the part of the 4.5 indicates data allowing the identification of that participation. 2. Capital shares, shares or other forms of participation. 3. Income type code (7 – management and advisory services in the Latvia, 12 property). Please transfer the overpayment amount to the following account ____ ____ ____ ____ ____ __ Bank swift/bit code _____ _____ _____ _____ _____ and the taxable person – non-resident (authorized person) (signature) "11. Supplement with 2.2 as follows: Annex" annex 2.2 the Cabinet on July 4, 2006, regulations no 556 With advisory services directly related expenditures application example company A – non-resident provides consultancy services company B-resident, by sending staff to Latvia. Company A directly related publications include advice provided in the person's salary in the part relating to the Administration and provided advisory services in the Latvia, subsistence allowance, calculated in accordance with national laws and norms, as well as travel expenses from the country of residence to Latvia and back and the hotel expenses. All such costs must be justified by supporting documents. Editions, which are considered to be directly related to revenue from advisory services, include only the portion of the employee's wages, which withheld personal income tax in accordance with the law "on personal income tax", or part of the salary from which personal income tax is withheld if the employee is a resident of a country with which the conclusion and entry into force of the Tax Convention. Expenditure paid by the recipient of the service, as well as administration expenses and other expenses, which provides the company an independent activity, cannot be attributed to expenses, which are considered to be directly related to revenue from advisory services provided. " 12. To supplement the provisions of this annex in the 4.1 version: "4.1 Annex Cabinet 4 July 2006 regulations no 556 article 6 of the law, part of the fifth application example" A "Ltd. in January 2015, acquired the land for 50 000 euros and building on 150 000 euros. December 2015 the said real estate is overrated: land value after evaluation is 90 000 euros and building value 180 000 euros. These real estate investments Ltd. ' B ' share capital. Accounting is posted to the revaluation reserve in the amount of eur 70 000, the real estate revaluation and is excluded and included in profit or loss in revenue due to it-the "B" share capital Ltd., and there is increased with the corporate income tax to taxable income. Given that the change in the real estate owners, i.e. the transfer of property takes place, then, irrespective of the manner in which the transaction is posted in the accounting records, you must do the following with the corporate taxable income adjustments: 1) with the corporate income tax the taxable income is increased by the land value in the increase in value of eur 40 000, the revaluation of land; 2) corporate income tax the taxable income is increased by the value of the building value gains of € 30 000, the revaluation of buildings and were taken into account, to the exclusion of building value of the revalued for accounting. Given that in accordance with article 13 of the Act for the calculation of the depreciation of the buildings listed separately from other assets, if the building is included in the fixed asset accounting, with corporate income tax the taxable income is increased by the negative asset value of remaining under the rule of article 13, first paragraph, point 5. 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