The Republic of Latvia Cabinet of Ministers Regulations No. 357 of 2000 in Riga on October 18 (Mon. No 49, § 1) the law "on personal income tax" rules rules Issued in accordance with the law "on personal income tax" 38. the first paragraph of article 1 of these provisions, certain of the law "on personal income tax" (hereinafter the law) the application of the rules of procedure.
2. in applying article 3 of the law third, natural persons-non-residents-in Latvia, the taxable income of non-resident tax form period (calendar year) in Latvia get the money, and the natural value of the services received, minus any of the laws referred to in article 9 of the non-taxable income, taking into account article 9 paragraph 2 of the first paragraph in the specified exception.
3. in determining whether a non-resident natural person — — on the income gained in Latvia have to pay individual income tax (tax) must also comply with existing bilateral international treaties for avoidance of double taxation and the prevention of fiscal evasion.
4. Article 3 of the law of the third subparagraph of paragraph 8 shall apply, if the non-resident receives income from a property that is, or crossing the borders of the Republic of Latvia, was imported into that State and leased to residents or foreign companies (non-resident) permanent representation of their economic activity in the territory of the Republic of Latvia and abroad.
5. the natural person according to law article 4, first paragraph, (4) and (5) the same payroll tax calculation of its gainful employment income and contributions in the budget if it: 5.1 has an employment relationship with an employer that is a foreign business (non-resident), with no representation in Latvia;
5.2. business with foreign diplomatic and consular representations in Latvia (applies to the representation of the local staff);
5.3. on the basis of the contract of employment is remunerated for the performance, which is financed from the foreign technical assistance or loans of international financial institutions.
6. If the employer — for non-residents — in Latvia is a representation, payroll tax calculations in the general budget, the contributions of the employer (the Mission).
7. in paragraph 5 of these rules that natural persons register with the State revenue service territorial institution of their place of residence by the end of the month following the month in which the individual is brought into an employment relationship with the law article 4, first paragraph, (4) and (5) above, the employer and payroll tax for the calendar month of payment of the remuneration received by law article 17, the time limit laid down in paragraph 9.1. By registering for a payroll tax, a physical person presented with the employer in the employment contract. Making income tax payments for the first time, an individual tax paid for the month in which it is brought into a job, and then the following month.
8. in paragraph 5 of these rules that natural persons, the payroll tax calculation, calendar monthly income shall be determined according to the Cabinet's 31 March 1998 the Regulation No. 112 "rules for income on which to pay salaries tax".
9. This provision 5, 6, 7 and 8 do not apply to the natural persons — residents of Latvia, whose employer is a foreign taxable person, if that person working for your employer right outside Latvia. These individuals on income tax made during the year on the basis of employment with the foreign employer, the law and order within the time limit set, submit annual declaration of income.
10. Article 9 of the law, the first subparagraph of paragraph 1 in the natural persons personal palīgsaimniecīb, backyard farms and peasant farm income from agricultural production are not taxable — about 3000 lats year — is applied to the persons concerned, the total income from agricultural production independent of that person the number of farms.
11. in applying the law, article 9, first paragraph, point 1, to agricultural production are understood to include tree planting, cultivation of mushroom cultivation, wild berry growing, floriculture, greenhouse farms, poultry farming, beekeeping, rabbit keeping and zvērkopīb. Inland waters fisheries is fish farming bodies — private waters or natural person in bodies placed in use.
12. Article 9 of the law, the first subparagraph of paragraph 1 should exempt from taxation the income of farmers to apply or fisherman's farm, backyard farm or agricultural products produced in the palīgsaimniecīb. For agricultural products within the meaning of this law is considered a plant or animal production, which is realized in the original (unprocessed) form or after the primary, i.e. after the initial production to delivery the necessary quality requirements.
13. the natural persons holding sold agricultural production output may be at a higher level, if the whole processing processing (except livestock slaughter) is performed in the same farm.
14. The application of the law in the first part of article 9, paragraph 2, with the other laws understand those rules that give rights to domestic business, residents, on corporate income tax rebates or incentives, but not on the general corporate income tax, calculation and payment principles (Liepaja special economic zone law and Rezekne special economic zone Act).
15. Dividends received from a company that uses the law to reduce the corporate income tax in accordance with the law "on foreign investments in the Republic of Latvia", or Baltimore, the special economic zone law, or of Rezekne special economic zone law is liable to tax in proportion to its share of the profits by applying the aforementioned statutory corporate tax reductions or exemptions, have not been subject to the corporate income tax.
16. Article 9 of the law, the first subparagraph of paragraph 4 shall also apply to foreign insurance companies under the insurance benefits.
17. for the purposes of the Act, article 9, first paragraph, point 7, is not subject to tax the benefits laid down in the laws and which is provided for in the budget appropriations.

18. If the benefits are based on the fact that a person's job or employment with the institution or institutions, financed from the budget, the relevant authorities or institutions benefits not paid is applied to the exemption because it is not considered that they are to be paid from the budget allowances.
19. The application of article 9 of the law in the first part of paragraph 16, is not taxable compensation, laid down the law on the State civil service.
20. Article 9 of the law, the first subparagraph of paragraph 16 is also on the teaching staff of the educational institutions of further education support fund under the tuition refunds.
21. natural persons for the performance of the duties of the employment are sent on a business trip or travel, the employer paid travel compensation shall be exempt from tax according to the Cabinet of Ministers of 25 June 1996, regulations no 233 "order in which recoverable with the missions and the staff of travel-related expenses".
22. the cost of the compensation law, article 9, first paragraph, within the meaning of paragraph 16 is also a amounts paid to natural persons (regardless of whether the natural person has a working relationship with the institutions who send their missions) to reimburse travel expenses if travel is related to the objectives and tasks provided for in the statutes of the institution concerned (rules). If the mission subsistence allowance paid exceeds the Cabinet of Ministers of 25 June 1996, the provisions of no. 233 "order in which recoverable with the missions and the staff of the travel-related expenditure" defined limit, the allowance is taxable, which is higher than the norm.
23. Article 9 of the law in the first part of paragraph 17 supply in kind provided for by the employer, the ship owners and fishermen, the commercial team members of the catering, which, in the exercise of his duties, continuously on board not less than 48 hours. Crew members are not interchangeable with the catering compensation in cash. One of the crew members ' food expenditure rate per day is the following: 23.1 3. amount in lats, the ship while in port in Latvia;
23.2. the amount equivalent to 5 U.S. dollars, while in flight or ship in a foreign port.
24. Natural person to certify that its personal belongings sales company, company, institution, organization or foreign business (non-resident) to the permanent representation is not related to its business operations, submit the corresponding certificate (annex 1).
25. the natural person who sells real estate, which was owned for less than 12 months from the said real estate sales income pays tax in regard to the order by submitting the annual income declaration. Taxable income from the sale of real property is defined as the difference between the sales price and the purchase price.
26. Real estate acquisition value to be determined as the real estate purchase price plus expenses associated with its acquisition, the transaction fees for the State's design, strengthening the land ownership, the commissions and other relevant expenses that are not related to property management.
27. For the purchase of real estate (sales) days shall be considered the date of conclusion of the contract, if the contract does not specifically stated procedures for assignment of ownership (no matter which limits the buyer makes payments for the purchase) or if these rules otherwise.
28. Selling real estate, which is recovered by restoring ownership of nationalized real property, the purchase price is considered to be the sales price of the property.
29. Selling real estate received in succession (except this rule 30 of the cases referred to in paragraph) or as a gift, its value is considered the acquisition of heritage within the mass given the value of the property or gift in a specific property stated in the contract. On the acquisition of immovable property shall be considered the day of the date of entry into force of the judgment of the Court of Justice in the case of succession or donation agreement.
30. Selling real estate, who inherited from a person who had the real estate property, restoring ownership of nationalized real property, the purchase price is considered to be the sales price of the property.
31. the sale of privatized apartment or artist's workshop, or non-residential space, the acquisition value is object of privatisation privatisation certificates used for redemption of nominal value, if privatisation certificates used in the physical person and the family members are assigned to the law "on privatisation certificates". If privatised flats, the artist's works or not residential space privatization certificates payments are made and the money, the privatized objects acquisition value is the nominal value of the certificate used in the privatisation and paid part of the money. If an individual has used privatization privatization certificates, which it bought from other people, then, in determining the privatized apartments, artist workshops or habitable spaces, it is the value of the acquisition include acquired from other people the acquisition value of the privatisation certificates or a certificate of value after privatization the average market price of the day happened certificate purchase deal.
32. Selling privatized apartment or artist's workshop, on the date of acquisition to be considered a day, which is the natural person in the rental agreement for the apartment or artist's workshop rent (even if the rental agreement has been concluded for natural persons of the family name), or — according to the current population of the sign and rules — the date from which the physical person to the privatization has been put in this apartment.
33. Natural person selling shares, shares, shares, which give the holder the right to claim part of the capital of the issuer, and other securities (securities), which had been owned for less than 12 months, the tax from sales income of those securities pay a summary order, submitting annual income statement.
34. the taxable income from the sales of securities are determined as the difference between the selling price of securities and the purchase price.
35. For the purchase of securities (sales) days shall be considered:

21.8. publicly traded securities — the date of the change of ownership according to the law "on securities";
35.2. other securities — the date of conclusion of the contract, if the contract does not specifically stated in the transfer order and the date (no matter which limits the buyer makes payments for the purchase), or the day you registered for ownership over these securities, if such registration is provided.
36. On the acquisition value of securities considered their purchase price plus securities account service fees and commissions.
37. the sale price of the securities, if part of the consideration for the sale of securities is received in other cases (rather than money), is defined as the sum of money received in payment and cash payment not received part of the market value of the securities on the day of the sale.
38. to determine the taxable income from the shares buy-back personnel, in accordance with article 9 of the law in the first part of paragraph 19 is not exempt from taxation, is calculated the difference between the amount that the employee or his or her heir paid staff at the time of disposal of the shares, and employee expenses, the purchase of the shares. If the natural person owned the shares pursuant to staff rule "On limited liability companies" rules are converted to ordinary shares, the value of the ordinary shares in the day when a decision is taken on their conversion, is considered to be the staff share in the results of the disposal revenue and the date of this decision, of the common shares on the day of acquisition.
39. The application of article 9 of the law, the first paragraph of paragraph 21, is not liable to tax only the share of refunds relating to the taxpayer's personal consumption goods purchased.
40. For natural persons eligible expenditure under article 10, first paragraph, point 1 and 5 are recognizable state social insurance contributions in accordance with the laws of the Republic of Latvia "on State social insurance" and contributions to private pension funds in accordance with the laws of the Republic of Latvia "on private pension funds."
41. A taxable person has the right of royalties (royalties) to deduct the amount of the law article 10 paragraph 4 of the first paragraph in scientific, literary and artistic works, discoveries, inventions and industrial sample by expenses, which are associated with the work of creation, issuance, or other use of the execution, amounting to: 25.5.40% of the royalties (royalties) 41.1.1. music: work (Opera, operetta, Ballet, music for other theatrical productions , kamerdarb, symphonic, vocal and symphonic and choral works, works for brass band) creation and publication;
41.1.2. about sculpture, monumentally ornamental painting, decorative and applied arts, stājglezniecīb Designer, theatre arts and decoration of different technical graphics work;
41.2.30% of the royalties (royalties): 41.2.1. photographic works of the artistic creation of graphics and printing, as well as computer graphics and exhibitions and videodarb;
41.2.2. about the discovery, invention and industrial creation sample (from royalties for their use during the first two years);
41.3.25% of the royalties (royalty) — for other musical works;
25.7.20% of royalties (royalties): architectural project 41.4.1.;
41.4.2. on design project;
25.8.15% of the royalties (royalties) on another — at this point — not listed in job creation.
42. income paying tax during the year, calculated from the physical person payable royalties (royalties) at the time the cost of withholding tax, the income taken into account costs of making that provision set out in paragraph 41.
43. A physical person from paid royalties (royalties) of the amount of taxation year tax calculated and withheld pursuant to paragraph 42 of these rules, you can submit the annual income declaration, if its actual scientific, literary and artistic works, discoveries, inventions and industrial model creation, execution, or other issue relating to the use of expenditure certified by the justification documents exceed this rules set out in paragraph 41 of the rules. If the person is unable to produce supporting documents, the expenditure tax year taxable income calculation of expenses are taken into account the provisions laid down in point 41.
44. This rule 41, 42 and 43 do not apply in respect of the royalties (royalties) amounts that are paying royalties (royalties) to the recipient's employer.
45. The application of the law in article 10, first paragraph, point 5, on an individual's gross income shall be considered an employee's wages are not deducted from the deduction allowed by law (the non-taxable minimum, tax incentives, eligible expenditure) and deduction amounts, which under the law can be withheld from the pay of the person, as well as the withholding income tax amounts. Gross income is all the Latvian labour code contained in the wage elements: base salary (salary), pay for extra work (work, temporarily absent employee's duties), pay for overtime work, pay for work on public holidays and weekends, pay for night work, as well as the cost of the stimulus material (bonuses for execution of the work, the results of the annual bonuses etc. prizes) and other costs provided for in the collective agreement. Gross income does not include a natural person on the basis of the employment relationship with the added benefit of a value.
46. the non-resident's taxable income in Latvia, of which article 10 of the law of the report referred to in the second subparagraph the amount of eligible expenditure.
47. in determining the taxable income from economic activities physical persons that ownership of the buildings or structures have been restored to order, as well as their heirs and natural persons ownership of the buildings and structures acquired as donations from people whom the ownership of the buildings or structures are renewed in accordance with the procedure laid down by article 11 of the law, third subparagraph, point 4 of the above asset depreciation for buildings and structures calculation on the basis of the building or structure the State land service set the counting value updated by January 1, 1997.

48. If the rules referred to in paragraph 47 buildings and premises, to which ownership is restored up to 2000, the inventory value is specified more than once, their depreciation is calculated from the last, no later than the year 2000, updated values.
49. If the rules referred to in paragraph 47 buildings and premises of the inventory value, which is calculated depreciation of buildings and premises, is being updated (overrated) after the year 2000, the building and premises depreciation results in escalation are not taken into account.
50. According to article 11 of the law of part 15 point natural person pursuing an economic activity, may include operating income generating costs related to these expenses if they are following economic content and nature are connected with the economic activity of that person and the need to provide them: 50.1. property insurance premiums payable;
50.2. liability insurance premium payments and the costs of economic activities in the country of the vehicle technical inspection in proportion to the period of the insurance period or subject to technical inspection, operational needs mileage proportion;
50.3. electronic mail and using it;
50.4. expenditure on telephone conversations, according to business telecoms company certificate issued by a given transcript for all phone conversations and telephone subscriber's fee proportionate to the economic needs of the proportion carried out;
50.5. the compensation to tenants, which will cost landlords about accommodation repairs carried out in accordance with the Treaty, if the repair costs are not included in the tenant's operating expenditure;
50.6. compensation to tenants for residential space the release and termination of lease due to residential buildings major repairs or alterations to the premises of economic activity;
50.7. expenses associated with the launch of the economic activities;
50.8. joining fee and annual membership fee, the professional public organization, which refers to an individual's professional activity;
50.9. other following economic content and essence of economic activity requires expenditure.
51. where a natural person for carrying out economic activities use the premises or property, which is also used for the personal consumption needs, operating costs may only be credited with this space or the use of property-related expenditure, related to economic activity.
52. The application of the law article 12 and 13, the employer, paying the natural person to work for a basic income gained on a full calendar month, where the relationship started after the beginning of the month, or ended before the end of the month, the taxable income is calculated by applying the non-taxable minimum and tax allowances that person in accordance with the law is the law for those calendar days, which have been in existence. The non-taxable minimum working relationship than the month is calculated as one calendar day of the month, the non-taxable minimum employment multiplied by the number of days of existence. One calendar day of non-taxable minimum amount is calculated, the non-taxable minimum monthly amount divided by the number of days in the calendar month. Also, not a full month is determined also the tax relief.
53. Since the annual or additional leave, or leave without pay during an employee of conservation do not terminate the relationship with the employer, the employee will not lose the right to the non-taxable minimum and tax allowance to working on the application of basic income receivable.
54. In the period during which the physical persons income (sickness benefits based on disability "B") in proportion to the loss of working time to the number of days it costs — the State social insurance agency, is suitable for the non-taxable minimum and tax allowance, the employer shall, in determining the taxable income of the person in the workplace, it does not apply.
55. the natural person-non-resident — to get the resident status, the non-taxable minimum and tax relief to which it is entitled, shall apply from the date of the taxation year in which an individual has become the resident.
56. Article 13 of the law as laid down in the first subparagraph are applicable to the tax relief with the date on which the taxable person is having the right to tax relief, and by discontinuing the next day after the date on which those rights are lost.
57. the employer, on the basis of an individual's payroll tax notebook entries made on the law on tax relief for the creation or slump, make taxation year tax recalculation, if tax relief was not appropriate for all time from the beginning of the tax year up to the end of the tax year for which the person has been entitled to it, or has been applied for a longer period of time than a person has been to the right and in addition to the calculated tax be withheld or released too much withholding tax in the coming months after the taxation year tax notebook entries on the right to tax relief push.
58. in accordance with article 13 of the law, first paragraph, point 3 of the tax relief (the non-taxable minimum) 1200 lats is applicable to such pensions: 58.1. by 1 January 1996 in accordance with the law "on State pensions" the State old-age pension, disability pension or a survivor's pension;
58.2.1996 January 1 the pension that after 1 January 1996 is recalculated according to the law "on State pensions";
58.3. the retirement pension that after 1 January 1996 was granted in accordance with the law "on State pensions" paragraph 12 of the transitional provisions or military retirement pension law, or the law "on the retirement pensions system, the Ministry of the Interior staff with special ranks", or the Prosecutor retirement pension Act;
58.4. Special State pensions granted under the law on the Supreme Council of the Republic of the legal position and pensions ".
59. If the pension was granted after the beginning of the taxation year, paragraph 58 of these rules, that tax relief is determined in proportion to the period from the date of award of the pension to the end of the year.
Example.

Retirement date is May 12. To determine the person's pension tax relief applicable to the end of the year, is calculated the size of the tax relief by the end of the remaining seven full months and it has 700 million lats (700 = 1200:12 * 7), and the month in which the pension is granted, and this is $64.52 (64.52 = 1200:12:31 * 20). Calculating the size of the tax relief is not a complete month, the amount of tax relief per calendar day shall be determined, taking into account the calendar day of the month. Thus, the persons referred to in the application for the pension taxation year applicable tax relief amounting to $764.52.
60. The application of this rule 58.2. above, the pension shall be considered if the pension adjustment calculated is based on a written application to the beneficiary according to the law "on State pensions" to article 24.
61. the calculated tax and income from which tax is calculated is rounded up to the nearest whole cent, dropping the 0.49 centimes and less or rounded to zero for 0.50 cent and more.
62. The application of article 17 of the law the fifth part, the employer shall pay the employee paid in cashless payment options, including the employee's account at the credit institution or non-profit organization public joint stock company "Latvijas Pasts", payroll tax contributions to the budget on the same day, in which he gave his orders to pay the transfer from your account to the account of the employee.
63. the employer of the urgent, temporary, one-time jobs employed employees wages are calculated and withheld payroll tax contributions in the budget the day it paid into the budget of the company staff payroll tax.
64. in applying article 17 of the law the seventh paragraph, if the employment relationship is ended before the end of the year, as well as if the employee had been employed in a temporary, one-time, urgent works notice of employer payroll tax (according to the form approved by the Cabinet of Ministers) sent to the State revenue service territorial institution at the employer's location to the 15th date of the month following the termination of the month or the month in which the employee has been employed in the urgent , short, one-time jobs.
65. organizations, companies, institutions, organisations and foreign companies (non-resident) missions, which are located within its administrative borders of the municipality to which the contract has been concluded on the tax revenue collection in the special procedure by way of article 17 of the law on the tenth part of income referred to in the physical person whose residence is in the territory of that local government, from the taxpayer's withholding tax paid to local government account.
66. The application of article 17 of the law on the 10th point 7 of part, on evidence that the physical person who carries out an economic activity, is registered reviewer status, economic activity, is considered to be: 66.1. law "on individual (family) business, farmers or fisherman's farm and individual work" in accordance with the procedure laid down in the individual work has been issued a registration certificate or a patent;
66.2. taxpayer registration certificate.
67. in order to verify the economic operator registration status, physical person, you only need one of these rules, paragraph 66.
68. the natural person, demonstrating the economic operator registration status in accordance with this provision, in paragraph 66 of the document referred to in the copy of the document, submitted to company, company, institution, organization, a foreign company (non-resident) permanent representation to income the paying agent.
69. If an individual cannot produce these rules referred to in paragraph 66 of the document, the income of the paying agent shall withhold the amount payable tax, which is paid to the budget law article 17, part of the 10th deadline.
70. the tax costs of natural person-non-resident withholding income-cost site in the article 17 of the law on the tenth part of the cases.
71. in accordance with article 17 of the law of the tenth and twelfth company, company, institution, organization or foreign business (non-resident) permanent representation, which has paid to non-resident natural person — — the income from which tax according to law, the cost of income withholding, giving evidence of non-residents non-residents tax year income and tax paid in Latvia (annex 2).
72. for the purposes of article 17 of law eleventh part, company, company, institution, organization or foreign business (non-resident) permanent representation, which the natural person income, income from the cost of the site is not withheld income tax, the cost of the day — natural person income issued the requested — evidence of the cost (cash expense order, cheque, voucher), which contains the following information: 72.1. income paying properties (name, registration number);
72.2. income recipient's name, surname and personal code;
72.3. income type;
72.4. paid amount (in lats and Sant MS);
72.5. costs.
73. The company, company, institution, organization or foreign business (non-resident) permanent representation, which natural person income connected with its business operations, or other income that is not exempt from taxation, but of which, in accordance with article 17 of the law on tax charges should not retain, instead send the State revenue service territorial institution, by its location in the notification under the Cabinet of Ministers of 2 May 2000, the regulations No 166 "regulations on individual income tax returns and notices" for each quarter of natural person under to taxable income amounts that are not related to the employment relationship, to a quarter following 15th date of the month. IV quarter of annual statement shall be submitted to the pēctaksācij of February 1.
74. This provision 72. in the cases referred to in this provision, paragraph 73 of the statement drawn up separately for each natural person paid to taxable income.
75. by natural persons — income — income beneficiary's request, paying with the rules referred to in paragraph 72 of the cost of supporting documents issued by the natural person referred to in paragraph 73 of the statement.

76. The company, company, institution, organization or foreign business (non-resident) permanent establishment — income — the paying agent, the natural person paid tax taxable income statement according to the Cabinet of Ministers of 2 May 2000, the regulations No 166 "regulations on individual income tax returns and notices" under the natural person to non-taxable amounts sent to the State revenue service territorial body of his location to the pēctaksācij of February 1.
77. This provision, paragraph 76 statement of income the paying agent is not required to submit, if natural person tax year taxable income not paid amount has been less than monthly non-taxable minimum.
78. the company, company, institution, organization or foreign business (non-resident) to the income of the permanent representation of the paying agent, rule 73 or 76. the notification referred to in paragraph State revenue service territorial body of his location is not sent by the community for the following types of income: 78.1. scholarships from the budget or education or international cooperation programmes;
78.2. benefits from the remuneration of the guardian's duties and remuneration for the duties of the audžuģimen;
78.3. remuneration of law and other regulations in accordance with the procedure laid down for the damage capacity loss associated with mutilation or other damage to health, as well as due to the survivors;
78.4. amounts paid to the State or local government bodies, on the basis of the decision by providing assistance in case of natural disasters or other exceptional cases;
78.5. amount of compensation laws and Cabinet regulations within the limits prescribed;
78.6. remuneration for blood donation and other donorpalīdzīb;
78.7. lotteries and gambling winnings, of which less than 500 lats.
79. This paragraph 73 and 76 of the notification referred to in paragraph need not be submitted for a natural person individual owned entity (also a farmer or fisherman's farm) paid amounts.
80. A non-profit organization limited liability company "Soros Foundation — Latvia" notification of tax during the year, in the framework of the projects funded under grants and compensation, which the natural person paid outside work legal relationship with the non-profit society with limited liability "the Soros Foundation — Latvia" (annex 3), the State revenue service territorial body of his location by pēctaksācij on February 1.
81. A non-profit organization limited liability company "Soros Foundation — Latvia" in the framework of the projects funded by grants and compensation cost is carried out, including the money from a nonprofit organization society with limited liability "the Soros Foundation — Latvia" credit account personal account or credit institution specified by the community from the non-profit organization society with limited liability "the Soros Foundation — Latvia" cash cash, or using other people.
82. Persons who committed payments are subject to tax in accordance with article 17 of the law, the seventeenth are set on the basis of the Cabinet of Ministers of 31 March 1995, regulations No 69 "rules on duty-free or low taxation countries and areas".
83. Article 17 of the law on the part of the application of the seventeenth term "payments" means any payments that reduce the taxable income of the offender. The concept of "payment", regardless of whether they are made using non-cash settlement, or paid in cash or in other cases (in kind) or a mutual settlement including, include interest, royalties, payments for all types of services, payments to cover actual expenses, insurance premiums, payments, cash and deposit guarantee that tax-residents or non-residents of Latvia, which by law must be submitted to the annual income of residents of the Declaration — the cost of any person who is, has been created or established duty-free or low-tax State or territory.
84. If the taxable person shall repay the loan and interest on loans received from a person who is, has been created or established duty-free or low-tax State or territory tax deducted only from the interest amount payable.
85. If the person who is, has been created or established duty-free or low-tax country or territory, has the bank account registered in the Republic of Latvia in the credit institution and the person concerned from that account, making payments, which the recipient is a person who is, has been created or established duty-free or low-tax State or territory, and this payment is reduced as a result of the Latvian taxpayer's taxable income, is considered that these payments are made to the Latvian tax payer and for those applicable law article 17 the seventeenth.
86. Where a taxable person considers that his payments to these persons is applicable law in article 17, the 18th, which States that the State revenue service may allow not to withhold tax from these payments, the taxable person shall submit a payment made before the State revenue service territorial institution of their place of residence application-request not to apply his payments to the persons referred to in article 17 of the law of seventeenth.

87.86. These provisions in the application referred to in paragraph 1, the request shall indicate the taxable transaction, the nature of the substance and the applicable prices, explains the circumstances are determined the need to do business with the person tax-free or low tax country or territory declares that the transaction does not take place in Latvia to reduce the taxpayer's taxable income or pay taxes, and that Latvia Latvian a taxable person or taxable person with personal or business related, directly or indirectly (through participation in another person or more other persons or otherwise) participated in the person of: the payee, the documentary identifies the persons who directly or indirectly (through participation in another person or more other persons or otherwise) are the people — the recipient of payments — actual owners. The taxable person referred to in the application, the request shall also include any other relevant information that the State revenue service makes a decision. If the State revenue service requires the taxable person after the transaction, submit documents or their copies (contracts, customs declarations, bills of lading, etc.) that confirm the actual execution of transactions.
88. A taxable person may be not to apply article 17 of the law of the seventeenth (may not withhold tax at 25%) only after receiving the State revenue service's written permission does not withhold tax from the payments specified in the permit or authorisation from payments for these transactions. If the taxable person has not received the said permit, payments that it made to the person who is, has been created or established duty-free or low-tax State or territory cannot be considered as expenditure of the taxable income.
89. The State revenue service examined this provision in paragraph 86 of the application-request and within 30 days from the date of receipt of the application, shall issue the taxpayer a written authorization not to withhold tax or that the refusal to issue a permit.
90. the issue of the rules referred to in paragraph 89 of the State revenue service it indicates on which payments are subject to authorisation issued and what is the validity period of the permit. The State revenue service may not be the taxable person to issue a general authorisation, applicable in respect of all taxable payments made without specifying a particular transactions and their members (the payee).
91. The State revenue service has the right to allow any tax withheld in accordance with article 17 of the law of the 17th part, if the person reasonably prove that those payments are not made to reduce the taxpayer's taxable income and paid or reduce the taxes payable in Latvia. In determining whether a payment is not made in these reasons, the State revenue service take account of the following conditions: 91.1. or which is based on real economic activity;
91.2. or the taxpayer's economic relations with people who are, have been, or been tax-free or low tax countries or territories, the taxpayer is required by the nature of the business;
91.3. which due or the taxpayer's taxable income is not reduced more than it would be reduced if the recipient of the payment would be resident or non-resident permanent representation of Latvia;
91.4. or the person or associated persons or companies are not directly or indirectly (through participation in another person or more other persons or otherwise) in which the person participated in, is created or established duty-free or low-tax State or territory;
56.9. or the taxable person and the person is located, has been created or established duty-free or low-tax country or territory is not considered linked enterprises law "on enterprise income tax" in article 1, the third subparagraph of paragraph 5;
91.6. any other factual circumstances and conditions in which occurs the action or effect transactions concerned and on the basis of which the decision may be taken not to withhold tax pursuant to article 17 of the law of the 18th.
92. The State revenue service must not be unreasonable to refuse to issue a permit for the taxable person to deduct tax under article 17 of the law of the 17th part, if the taxable person has proved that the law of article 17 of the eighteenth and the requirements of this regulation which need to get that permission.
Example.
Latvian residents are buying from duty-free or low-duty residents of a country or territory goods (production of semi-finished products), which are actually brought into Latvia to further sales, processing or Assembly. Commodities (semi-finished products) are purchased at prices higher than the market price. In this case, the State revenue service may allow not withhold tax on amounts that the Latvian residents pay for goods (production of semi-finished products) that are imported into Latvia for disposal, or for processing it in the Assembly.
93. The State revenue service revoke the authorisation, if the tax administration process, it has obtained information that suggest that a taxable person submitting this provision set out in article 87(1) information, has provided false information. If the State revenue service revoke the authorisation does not withhold tax, tax or part of the tax that was withheld in accordance with article 17, the s is considered overdue tax payment, which calculates the principal sum and the increase of late, starting with the day when the payment has been made, which was to be deducted from tax.
94. A taxable person may request the opinion of the Commission of the assessment of transactions according to the law "About taxes and fees" for article 39 if there is disagreement with the State revenue service on the market price or market value of the transaction with a person who is, has been created or established duty-free or low-tax State or territory.
95. These rules 25, 26, 27, 28, 29, 30, 31 and 32 of the applicable taxable year, the taxable income for the whole tax year determination.
96. These rules 33, 34, 35, 36 and 37 shall enter into force by 1 January 2001.
97. Be declared unenforceable:

60.3. The Council of Ministers on 2 May 1991, decision No 126 "for the order in which you want to exclude expenditure from royalties, if the reimbursement be taxable" (the Republic of Latvia Supreme Council and Government Informant, 1991, nr. 33);
97.2. Cabinet of Ministers of 10 May 1994 rules no. 97 "On fisheries and Merchant Navy crews food supplies" (Latvian journal, 1994, 59 no;)
60.5. The Cabinet of Ministers on 4 June 1996 the rules no 195 "law" on personal income tax "application rules" (Latvia's journal, 1996, no. 99).
Prime Minister a. SMITH financial Minister g. SMITH rules shall enter into force on 21 October 2000, but on certain points of the application and entry into force — see. 95. these provisions and 96.