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Rules Of Procedure For The Determination Of Corporate Taxable Income From Sales Of Securities

Original Language Title: Noteikumi par kārtību, kādā nosakāms uzņēmumu apliekamais ienākums no vērtspapīru pārdošanas

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Cabinet of Ministers Regulations No. 150 (No. 23, 18) Riga 1996 April 23, the provisions on the procedure for the determination of corporate taxable income from sales of securities Issued in accordance with the law "on enterprise income tax" the fifth part of article 3 and article 4 of the sixth 1. these provisions establish procedures in accordance with the law "On enterprise income tax" (Latvian journal, 1995, 32, 168. no; 1996, no. 46) would be forfeited to the company and the taxable income from the sales of securities.
2. the terms used in these rules shall comply with the law "on enterprise income tax" and the law "About taxes and duties" (Latvian journal, 1995, no. 26) used terms, if these rules otherwise.
3. These provisions apply to: 3.1 shares and financial documents, which according to the law "on securities" (Latvian journal, 1995, nr. 138) is in the public turnover and in accordance with the law on annual accounts "(the Republic of Latvia Supreme Council and Government Informant, 1992, 44/45.nr.; Latvian journal, 1995, nr. 34) posted in taxpayer's financial accounting as a long-term investment (hereinafter referred to as "publicly traded securities");
3.2. other shares and financial documents, as well as shares and capital that the owner or possessor of the entitlement to the document property of the issuer, if the shares, shares, capital and financial documents in accordance with the law on annual accounts "has been posted in the taxpayer's financial accounting as a long-term investment.
4. Taxpayer's resident and non-resident permanent missions (hereinafter referred to as the "company"), a taxable income of publicly traded securities, other securities as well as shares and shareholders (the "securities") sales are in accordance with the law "on enterprise income tax" in article 4, the first and the second part in a certain part of the taxable income from the sales of securities, Exchange or other form of business, with which the company shall transfer to the buyer (consignee) ownership (ownership) on securities against direct or indirect remuneration received or receivable in cash or other (hereinafter referred to as "sales") if these rules otherwise.
5. A taxable person — — non-residents taxable income from sales of securities to make up the difference between the selling price of securities and securities purchase price.
6. the acquisition of securities value is the sum of all costs associated with the acquisition of the securities, if these rules otherwise.
7. acquisition of securities value is the market value of the securities at the time of purchase in the following cases: 7.1 if the taxable securities are purchased from a related company or persons at a price above the market value of the securities;
7.2. where a taxable person has acquired the Securities Exchange against fixed assets or other securities;
7.3. If the taxable securities are acquired as a gift;
7.4. If a taxable person has acquired heritage securities;
7.5. in other cases, where the taxable person has purchased the securities, not paying out money.
8. Where a taxable person sells the residents of incorporated companies, shares in the capital or shares that are not publicly traded securities on the securities in the acquisition value should be considered as relevant for financial accounting in incorporated companies and posted to the sales point or actually paid-in shares of invested capital or the value of the shares.
9. Securities sales price is the amount of money it received or should have received as consideration for the sale of securities, or the market value of the securities at the time of sale if: 9.1 place sales of securities-related businesses or individuals at a price lower than the market price of securities;
9.2. the Securities Exchange has taken place against fixed assets or other securities;
9.3. in other cases, where the consideration for the sale of securities is not received in cash.
10. If part of the consideration for the sale of securities is not received in cash, securities sales price also includes its share of the market value of the consideration for the sale of securities that have not been received at the time of the (preliminary) in cash.
11. For the sale of publicly traded securities, their market value is the price that is quoted on the date of sale of securities (or the time of the sale the closest previous date of quotation).
12. Securities sales point: 12.1. publicly traded securities — the moment of change of ownership (in accordance with the law "on securities");
12.2. other securities as well as shares and capital-purchase and sale or exchange contract specified date or when possession is transferred over these securities, or the date when possession is recorded, if the transfer of ownership is not defined in the agreement.
13. On the sale of securities within the meaning of this provision is not considered: 13.1 securities issues and initial deployment (for issuers);
13.2. the stock exchange merger.
14. If the securities are sold, acquired for privatisation certificates for the purchase price of the securities are considered to be the seller's costs for the purchase of the certificate. If the seller — — where privatisation of incorporated companies certificates acquired as an investment in the Fund's statutes, the acquisition price is official privatisation certificates market price on the date they are credited to the account of incorporated companies.
15. If the tax year from the sale of securities to the company incurred losses, taxable income is increased by the amount of the loss. Pēctaksācij years of taxable income a company can cut down on the year's profit from the sale of securities of another five years after the emergence of the year, but not more than the amount of those damages.
16. Tax on non-resident's income from the public issue of securities sales in Latvia in withholding tax year and paid into the State budget this income-paying account holders (brokerage company or a bank) — for the entire tax year up to pēctaksācij in January, 25, submitted to national revenue a specific declaration, but a tax on non-resident's income from other securities as well as shares and capital — purchaser to the law "on enterprise income tax" in the order and within a time limit.
17. If the company sells other, this provision is not referred to in paragraph 3 securities (bills of Exchange, certificates of privatisation, State and local governments short term promissory notes, cheques or other securities), as well as the rules referred to in paragraph 3 of the securities that have not been posted as long-term investments, the company's taxable income is to be adjusted.
18 of the transitional issues. If your company sells a publicly traded securities during the period 2000 to December 31, the company's taxable income for a tax year shall be reduced by the amount of revenue generated from the sales of those securities in the tax year, but increases the amount of expenses that are directly related to the acquisition of those securities (acquisition costs, commissions, fees and other charges) for the previous taxation periods.
Prime Minister a. Minister of ŠķēleFinans A.G. Kreitus