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Amendments To The Cabinet Of Ministers On 19 September 2000 No. 319 "regulations" Of The Law On Corporate Income Tax "rules"

Original Language Title: Grozījumi Ministru kabineta 2000.gada 19.septembra noteikumos Nr.319 "Likuma "Par uzņēmumu ienākuma nodokli" normu piemērošanas noteikumi"

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Cabinet of Ministers Regulations No. 255, Riga, 25 June 2002 (pr. No 26, § 3.) 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) the following amendments: 1. To replace paragraph 6, the words "in accordance with the Cabinet of Ministers of 19 March 1996 the provisions of no. 66" rules for the application of tax incentives payments that are paid by non-residents ' "with the words" in accordance with the Cabinet of Ministers of 30 April 2001, regulations No 178 "procedures for applying international treaties for avoidance of double taxation and the prevention of tax evasion tax relief" set ".
2. Replace the 13, 29, 31 and 65, the words "Cabinet of 19 March 1996, the Regulation No 69" rules on duty-free or low taxation countries and areas "(the fold) with the words" Cabinet of 26 June 2001, the provisions of the rules on no 276 "tax free and low taxation countries and areas" (the fold).
3. Replace 9, 61, 64 and 82, the words "Liepaja special economic zone law or Rezekne special economic zone law" (fold) with the words "the law" for the free ports and special economic zones "(the fold).
4. Replace paragraph 9 in example 2 in the last sentence, the words "and applies a 25 percent rate" with the words "and apply the law" on enterprise income tax "in the third paragraph of article 3 of the prescribed rate, subject to the transitional provisions in paragraph 23 of the rules".
5. Add to paragraph 10 by the following sentence: "making payments to non-residents — physical persons — corporate income tax withholding if the non-resident — natural persons — in Latvia does not constitute income to the income taxable object."
6. Replace paragraph 12, the words "royalties for computer programs are exempt" by the words "payment for copyright (including related rights) or the right to use the copyright (including related rights) if they are related to computer programs, are subject".
7. Supplement with 12.1 and 12.2 points as follows: "application of law 12.1 article 3 paragraph 5, fourth subparagraph, with consideration for the use of property in Latvia understand the rewards of both movable and immovable property.
12.2 application of article 3 of the law of the sixth, with the Advisory Services understands any consultancy services, which provides domestic company (residential) or permanent representation (for example, the provision of advice, and the development of various types of material (calculation, project, business plan), providing information on changes in accounting programs, market research and advertising, equipment and production technology market and other matters relating to the company's strategic development, production and marketing the company's economic activities, research). The application of the law service classified as advisory services, taking into account its economic content and nature, not merely the legal form. "
8. Add to paragraph 14 with the following sentence: "given that the tax according to the rate specified by law to be withheld from all payments to offshore and low tax countries or territories tax costs at the moment also forfeited if the payment is made in advance."
9. Replace the words "in paragraph 36 of the law" on labour protection "in article 23" with the words "Labour Protection Act 7, 8, 11, 12, 14 and 25 article".
10. Supplement with 38.1 points as follows: "the application of the Act 5.23.7 article fourth, to expenditure which is not economically linked to the economic activity, plus product loss and write-off on the value of the goods that exceed the company's projected loss, regulations tax period. The planned loss of regulatory tax period is calculated based on actual loss (called the product) value for the preceding three tax periods. Startups as well as companies whose activity consists in the raw materials used or sold product mix changed dramatically, the planned loss provisions determined by the legislation established on the basis of the taxation year of the undertaking concerned and respecting the forecast particularities of economic activity. "
11. Express 45 as follows: "the application of the Act, 45. Article 6, first paragraph, point 4, the company's taxable income is increased by the sum of the costs mentioned, only if the company of the non-resident is not after a tax in the amount set in accordance with article 24 of the law and it is not lodged a budget. Tax on the amount concerned, in application of article 3 of the law on rate provided for in the first subparagraph and subject to the transitional provisions of paragraph 23 should be paid even if the company is exempt from corporate income tax payment or 100 percent relief is used in accordance with the law "on foreign investments in the Republic of Latvia '."
12. Supplement with 45.1 45.2 45.3 45.4,,,,,,, 28.3 28.3 28.4 28.5 28.5 points and by the following: "article 6 of the law of the 45 first part referred to in paragraph 7 of the loss on the sale of securities is a loss from the sale of such securities: 45.1 1. shares and bonds that are not in the public circulation in accordance with the law" on securities ";
45.1 2. capital and shares, which give right to the holder of the document to the issuer's capital;
45.1 3. securities claims.
the loss of this rule 45.2 45.1 referred sales of securities is the difference between the acquisition value of securities and securities sales price.
45.3 the acquisition value of securities are securities of unit price and the costs that are directly attributable to the acquisition of the securities. The acquisition value of the securities used in determining the method of "first in, first out" (FIFO) or weighted average price method. If it is not possible to determine the costs that are directly attributable to the acquisition of the securities concerned, such costs, when determining the value of the acquisition of securities, is not taken into account.
28.2 the securities sales price is the amount of money that is received or receivable as consideration should be on the sale of securities and which is off the Commission amounts and payments for other securities sales directly related services.
This rule 28.3 45.1 securities referred the acquisition value is the market value of those securities, where the taxpayer obtained from a related company or from a person associated with the company, at a price that is higher than its market value, or if the taxpayer has purchased securities in Exchange for assets or other securities, or if the taxpayer has obtained the securities as a gift or inheritance , or, in other cases, if the taxable securities are purchased, not paying out money.
28.3 If the taxpayer sells this rule 45.1 securities referred to an affiliated undertaking or person associated with it at a price lower than the market value of securities sales, price believes the market value of the securities on the day of the sale.
determining the acquisition of securities 28.4 (sales) market value, take into account the market value of securities purchase (sales) a day, meaning: 28.4 1. securities that are publicly traded in accordance with the law "on securities" and quoted securities acquisition (selling) per day or the last day before sale quotations of the day – the price;
2. other securities 28.4 — their balance sheet value.
28.5 the acquisition of securities (sales) the day referred to in paragraph 45 of these rules to the securities, if the date of transfer of ownership is not regulated by law, is the date specified in the contract, but if no such agreement, the date in which the transfer of ownership.
the application of the law of 6 28.5. the first paragraph of article 8 of the tax period, expenses related to the acquisition of the securities that are publicly traded in accordance with the law "on securities", determined in accordance with this provision, the conditions mentioned in paragraph 28.1. "
13. To supplement the rules by 29.9 points as follows: "the application of the law of 6 48.1 article IV paragraph 9 of part of the tax period, revenue from sales of securities that are publicly traded in accordance with the law" on securities ", determined in accordance with this provision, the conditions mentioned in paragraph 28.2."
14. Delete paragraph 51, the words "subject to article 6 of the law in the seventh part of these conditions."
15. Delete 52, 53, 54, 55 and 56 points.
16. Replace the words "in paragraph 60 (Liepaja special economic zone law and Rezekne special economic zone Act)" with the words "(law on the application of the tax free ports and special economic zones ')."
17. To supplement the rules by 71.1 points as follows:

"71.1 article 13 of the law applying in the case of company reorganisation acquires assets of the company being acquired the category of original value added increased corporation tax calculation to determine the residual value after depreciation deduction of the tax period.
Example.
Company "A" 1 July 2000 has been added to company "B". Subject to this provision, paragraph 87, the company "A" draw up a corporate income tax return, which takes into account the following tax period certain depreciation tax calculation purposes for the period up to 30 June 2000: tax period the unit's book value at the beginning of the tax period or purchase value of fixed assets created capital costs Off fixed assets net book value net book value, from the taxation period depreciation (3. + 4. + 5.-6.)
Rate (double) taxation period depreciation (7.8 x)
Residual value after depreciation deduction of the tax period (beginning the next tax period) (7.-9.)
1 2 3 4 5 6 7 8 9 10 2000 Ls PCs.
5000 25 580 13 100 200 3 1500 35 40% 300 1200 35 determining depreciation for tax calculation purposes, company "B" fixed asset depreciation calculations include in box 4 of the company's "A" fixed asset depreciation 10. box score.
 
Tax period the unit's book value at the beginning of the tax period or purchase value of fixed assets created capital costs Off fixed assets net book value net book value, from the taxation period depreciation (3. + 4. + 5.-6.)
Rate (double) taxation period depreciation (7.8 x)
Residual value after depreciation deduction of the tax period (beginning the next tax period) (7.-9.)
1 2 3 4 5 6 7 8 9 10 2000 Ls PCs.
5000 25 1200 35 0 0 6200 60 40% 2480 3720 60 18 85. replace the words "the Cabinet of Ministers on 24 September 1996, no. 367" in the terms of the order in which public organizations (funds), religious organizations and public institutions are granted or revoked permission to receive donations, donors receive a corporate tax incentives "to" with the words "Cabinet of 10 July 2001 of Regulation No 315" order in which public organizations (funds) and religious organizations are issued or revoked permission to receive donations , donors receive a corporate income tax credit ".
19. To supplement the provisions of the following paragraph to 57.2 and 92.2: "applying the law of 57.2 of the transitional provisions of paragraph 24, statutory tax to calculate the tax period of advance payments during the tax period, beginning in 2002-2004, the law for a given tax period the prescribed factor also apply to advance payments made to the pirmstaksācij period for submission of the tax return.
the application of the transitional rule 92.2 rule 28, a company whose total income from the sale of securities in a suitable procedure for the calculation of taxable income by 1 January 2001 has changed the law in relation to article 6, first paragraph, paragraph 7 and article 14 in the eighth amendments this tax period, the tax period incurred losses from the sale of securities are included in the calculation of taxable income and covers the chronological order of the next five tax period other securities sales taxable income. "
Prime Minister a. Smith financial Minister g. Smith Editorial Note: the entry into force of the provisions to 29 June 2002.