Cabinet of Ministers Regulations No. 326 in 2004 Riga 20 April (pr. No 23, § 16) amendments to the Cabinet of Ministers on 19 September 2000 No. 319 "regulations" of the law on corporate income tax "rules" Issued in accordance with the law "on enterprise income tax" article 27 to make a Cabinet of 19 September 2000 No. 319 "regulations" of the law on corporate income tax "rules" (Latvian journal, 2000, 2001,/333.nr.; 112 331. No; 2002, 97. nr.) the following amendments: 1. Replace the text of the provisions, the word "Finance" with the word "financial".
2. Make a point 2 as follows: "2. in applying article 1 of the law of the third subparagraph of paragraph 1, for the parent company and the subsidiaries related companies considered the law" On the annual accounts of the company "."
3. Replace paragraph 8 in the example: 3.1 number and the words "25 interest rate" with a number and the words "15 interest rate";
3.2. number "20000" with the number "12000";
3.3. the number "220000" with the number "132,000".
4. Replace paragraph 9 example 2 of the words and figures "of the Cabinet of Ministers of 18 April 1995 the Regulation No 106" rules on the permanent representation of the non-resident taxable income "the" with the words and figures "Cabinet of 27 December 2002 regulations no 587" permanent representation of non-residents taxable income and tax payment arrangements ".
5. Supplement with 10.1, 10.2, 10.3, 10.4 and 10.5 point as follows: "10.1 application of article 3 of the law of the fourth part of paragraph 1, the paying of dividends deemed to be a Corporation (the company), which paid dividends.
10.2 If, until the day a decision on dividends (the Latvian Central Depository participants in the issuer's status — dividend calculation date), the recipient of the dividends, which is a company, resident in a Member State of the European Union — at least two years continuously owned not less than 25 percent of the equity and voting rights in the company, which pays dividends, the dividend recipient to dividend payout to date (if paying dividends is the Latvian Central Depository member status of the issuer – four working days after dividend calculation date) submit to the Corporation that paid dividends, a written declaration, which shall specify: 1.10.2 the name, registration number, address, country of residence;
2. information about 10.2 suspension of capital and voting rights in the company, which pays dividends to the day when a decision on dividends, indicating how long the continuously owned not less than 25 percent of the equity and voting rights in the Corporation, which pays dividends;
10.2 3. that is aware of the statutory responsibility of the false news provision.
10.3 If, until the day a decision on dividends (the Latvian Central Depository participants in the issuer's status — dividend calculation date), the recipient of the dividends, which is a company, resident in a Member State of the European Union — in less than two years continuously owned not less than 25 percent of the equity and voting rights in the Corporation, which pays dividends, the dividend recipient to date of dividend shall be made to the State Revenue Service article 3 of this law in part 4.1 bank guarantees in the amount of 10 percent of the amount of dividends receivable.
10.4 this provision 10.3 point bank guarantees referred to include the following information: 1.10.4 the State revenue service territorial institution after paying dividends on the registration site for which the guarantee is provided;
10.4 2. — warranty provider (full name, registration number, registered address, country of residence), and the bank — guarantor, the officer (first name, last name, signature);
10.4 3. company, resident in a Member State of the European Union, for which the guarantee is provided (name, registration number and the name of the institution in which the registration, registered address, country of residence);
10.4 4. Latvian corporations (companies) whose dividends to a company, resident in a Member State of the European Union, for which warranty, full name, registration number, registered office;
5. payment guarantee 10.4 volume 10 percent of the amount of the dividend amount (amount in LCY, you must specify the numbers and words);
10.4 6. confirmation that the bank-guarantor: the guarantee of the State revenue service territorial institution — beneficiary — to immediately pay the amount of the guarantee from the guarantee you receive the requested written confirmation of the requirement to pay and that the public — residents of a Member State of the European Union, in accordance with the law "on enterprise income tax" the fourth part of article 3 paragraph 1 of the lost right to tax not deducted from dividends and has not paid corporate income tax;
10.4 7. claims and disputes related to guarantee, in accordance with the laws of the Republic of Latvia.
10.5 the State revenue service territorial authority within five working days, issue the dividend recipient — a company which is resident in a Member State of the European Union, a statement of the bank guarantee. A copy of this certificate shall submit to the Latvian public Corporation (company) — paying dividends. "
6. Replace paragraph 20 in number and the word "25%" with a number and the words "15 interest rate".
7. Supplement with 23.1 points as follows: "If, when applying the law 1.2 article 3 the ninth part of the State revenue service has made this provision referred to in paragraph 23, over tax payments made to non-residents, and it is expected that the taxpayer's transactions undertaken in the future be uniform and participating actors taxation during the period will be one and the same person, the State revenue service is entitled to issue a permit to a certain validity period not exceeding 12 months, does not withhold tax in accordance with article 3 of the law on the eighth of the particular non-resident payments. "
8. Supplement with 24.1 points as follows: "24.1 the State revenue service has the right to withdraw this provision referred to in paragraph 23.1, if the tax administration process based information is obtained, which shows the true circumstances of the transaction concealment."
9. Replace paragraph 29, the words and figures "of the Cabinet of Ministers of 18 April 1995, Regulation No 106" rules on the permanent representation of the non-resident taxable income "the" with the words and figures "Cabinet of 27 December 2002 Regulation No 587" permanent representation of non-residents taxable income and tax payment arrangements ".
10. Express 31 the following: "31. Permanent representation in profits may be reduced by a non-resident, which is permanent representation expenses or spending part of the Cabinet of Ministers of 27 December 2002, no. 587 in the terms of" permanent representation of non-residents taxable income and tax payment arrangements "."
11. Amend paragraph 32.
12. in paragraph 33:12.1 replace the words and figures "of the Cabinet of Ministers of 18 April 1995, rule no. 106" rules on the permanent representation of the non-resident taxable income "point 2" with the words and figures "Cabinet on 27 December 2002, no. 587 of the provisions of the" permanent representation of non-residents taxable income and tax payment arrangements "4";
12.2. example replace the words "five late" with the words "three dollars";
12.3. example number and replace the word "15 Lats" with the words "nine dollars."
13. Add to paragraph 39 of the third sentence by the following: "article 5 of the law's provisions of the fourth subparagraph shall not apply if the taxpayer that the lottery of goods and services in accordance with the procedure laid down in the law, received permission to hold a lottery, a lottery of goods or services and pay the State fee in the amount of 25 percent of the winnings Fund."
14. Replace the words in subparagraph 1 45 "law on securities '" with the words "financial instruments market law."
15. Delete 28.3 28.3 and 28.4 points,.
16. Replace paragraph 28.5, the words "the law" on securities ' "with the words" financial instruments market law. "
17. Put 48 as follows: "the application of the law 48. Article 6, paragraph 2, the fourth subparagraph, the taxable income reduced by subsidies received by taxpayers, which produces agricultural products or perform the first-stage processing of agricultural law, and which paid as State aid for agriculture, as well as the subsidies that are paid as European Union aid for agriculture and rural development, where these subsidies before then have been reflected in the taxpayer's profit and loss statement. Article 6 of the law of the fourth part of the meaning of paragraph 2, the aid to be considered as support under the business support Control Act. "
18. Replace 29.9 points, the words "the law" on securities ' "with the words" financial instruments market law. "

19. Replace the words "in paragraph 50 the Liepaja special economic zone law or Rezekne special economic zone law" with the words "the law" on the free ports and special economic zones ".
20. Supplement with 56.1 56.2 56.3 56.4 points, and such as: 56.1 of debt obligations "of the law in article 6.4 of the first and second subparagraphs shall be construed as meaning only those debt obligations for the tax period is calculated on interest payments, with the exception of article 6.4 of the law referred to in the fourth paragraph.
6.4 Law article 56.2 of the first and second subparagraphs shall apply to all types of interest payments on debt obligations, including interest payments paid on financial leasing and factoring transactions.
56.3 in determining tax period for the average burden of debt obligations, take into account both in local currency and foreign currency loans and credits received. With respect to debt obligations issued in foreign currencies, the application of the Central Statistical administration determined the average credit rate loans issued in foreign currencies.
on the debt obligations of 56.4 average 6.4 of the law first and the meaning of the second paragraph is deemed to be a debt of the annual weighted average, which is calculated by adding the value of the debts of the last date of each month (except the last month of the tax period), plus half of the debt obligations of the values at the beginning of the tax period and half of the debt obligations of the values at the end of the tax period and the amount obtained then being divided by the number of months during the tax period.
Example.
Company A tax period is equal to the calendar year. During the tax period in company A debt commitments will not be changed. Debt obligations of the annual weighted average in 2004 is calculated as follows: 01 January 1/2 x 100 = 50 LVL 31 January 29 February 100 lats LVL 31 March 100 100 lats 30 April 100 lats May 31 100 lats June 30 July 31 100 lats LVL 100 100 lats august 31 September 30 October 31 100 lats LVL 100 100 lats 30 November December 31 1/2 x 100 = 50 lats in total 1200 lats debt obligations year weighted average : 1200:12 = 100 lats. "
21. Supplement with 58.1 points as follows: "If the customer: 58.1 a person — is dead and the obligations taken over by its heirs, law 9 of the first paragraph of article 7 shall be applied, on the basis of the judgment of the Court of Justice for recovery of the debt of the deceased debtor's heirs and the bailiff on the drive. If the customer — natural persons — something the State that agrees to the rules of law shall apply on the basis of a court decision on the termination of the proceedings specified in the decision approving the property of the deceased debtor's jurisdiction of the State. "
22. Replace paragraph 87, the words and figures "Cabinet on 9 January 2001, Regulation No 11" rules on corporate income tax declaration "with the words and figures" of the Cabinet of Ministers of 23 December 2003, the provisions of no. 741 "rules on corporate income tax declaration" taxation year ".
23. To supplement the rules with 87.1 points as follows: "the application of the law of 22 87.1 article eighth, partnerships (partnerships) Declaration on retained earnings and retained earnings for each beneficiary, as well as agricultural service cooperative society statement on its members split the excess and surplus for each Member in the size of the split dial and 30 days after the approval of the annual report, no later than the law" on the annual accounts of companies ' deadline shall be submitted to the State revenue service territorial institution by location. "
24. To supplement the rules by 92.3 points by the following: ' rule 92.3 10.1, 10.2, 10.3, 10.4 and 10.5 points shall enter into force on 1 May 2004. "
Prime Minister i. Emsis Finance Minister o. Spurdziņš Editorial Note: regulations shall enter into force by 29 April 2004.