Cabinet of Ministers Regulations No. 907 Riga 2012 December 18 (Mon. No 71 85) amendments to Cabinet 21 September 2010 No. 899 "provisions of the law" on personal income tax "for the application of the rules" Issued in accordance with the law "on personal income tax" in the third subparagraph of article 3, paragraph 12 of the "a" section, article 9, first paragraph, paragraphs 16 and 17, article 10, first paragraph, point 4, article 11, third subparagraph of paragraph 15, article 17, paragraph 2 of part 11 of the 38. the second paragraph of article and article 39 1. make Cabinet 21 September 2010 the arrangements no 899 "law" on personal income tax "for the application of the rules" (Latvian journal nr. 156., 2010) the following amendments: 1. make paragraph 10 by the following: ' 10. Article 3 of the law of the third subparagraph of paragraph 12 shall not apply if it is seized of intellectual property objects, which are listed in paragraph 86 of these rules. Income from disposal of intellectual property object, if the individual disposes of the intellectual property object, which is created by this person, according to article 7.4 of the law is income from capital-capital growth. " 1.2. to supplement the rules by 43.1 points as follows: "article 9 of law 43.1 first part within the meaning of paragraph 16 of compensation costs is also a unit of Latvian Olympic athlete catering expenses. The amount of these expenses is calculated according to the Latvian Olympic athlete nutrition unit of expenditure (annex 12). "; 1.3. to supplement the rules with 52.1 points as follows: "the application of the law of 9 52.1. the first paragraph of article 33, the apartment registration real estate the State cadastre information system is comparable to the registration in the land registry in any case, if the taxable person does not create legal opportunities for sale apartment to record in the land and thus objective reasons can not be run law article 9, first paragraph, the criteria set out in paragraph 33, that the real estate is registered in the land registry for more than 60 months. '; 1.4. to make 61. paragraph by the following: 61. "this rule 60 shall not apply where the intellectual property is being seized for the objects that are listed in paragraph 86 of these rules. Income from disposal of intellectual property object, if the individual disposes of the intellectual property object, which is created by this person, according to article 7.4 of the law is income from capital-capital growth. " 1.5. to replace paragraph 80, the words ' agricultural land, buildings, constructions and forest "by the words" agricultural land and buildings or structures "; 1.6. to supplement the provisions of the following paragraph 85.1: "applying the law article 85.1 7.4, first subparagraph, shall be determined by the capital increase, is not taken into account the holding period of the asset capital equity investment in asset value when determining real estate value of the acquisition, account is taken of the actual real estate cadastre value real estate transfer year."; 1.7. to replace the words "in paragraph 87.2. assessment in the absence of" with the words "cadastre value"; 1.8. to supplement the rules with 89.1, 89.3, 89.5 89.2, 89.4, 55.7 55.7, and 89.8 points, as follows: "the application of the law of 89.1 7.4 of part 4, article 11, paragraph taxable income consists of the positive difference between the calculated insurance payment or repurchase amount and paid all the insurance premiums that insurance for the duration of the contract paid for this insurance contract. As regards the existing life assurance contracts (with funds accrual) concluded by 2009 December 31 and provides for partial cost savings for the duration of the contract, shall also take into account the transitional provisions of the law 85 (13 of these regulations. example 1). the application of the law in article 89.2 of the thirteenth part 7.4 If a life insurance contract (with the funds accrual) claims at the end of the period (including income from this insurance contract) is paid in instalments, the income of the life insurance contract concluded (with funds accrual) determines when the first part of the calculation of claims, reducing the total amount of claims paid on the amount of tax payable (13 of these rules 2 and 3 of the annex apply). applying the law of 89.3 7.4 fourteenth part of article if this rule 89.2 above increases in claims for the additional profit, taxable income is determined when the next part of the calculation of claims, reducing the total remaining amount of claims in the amount of tax paid (this rule 13. example 4). applying the law of 89.4 7.4 fifteenth part of article, the taxable income of the insurance indemnity paid under a life insurance contract (with storage), which concluded in the interest of the insured's employer (or other policyholders – legal person), comes to the end of the insurance contract, if the whole life insurance (with accumulation) during operation the policyholder has been the employer (or other entity) , distributed as follows: 89.4 1. taxable income from insurance compensation corresponding to the employer (or other policy-legal persons) insurance premiums paid around; 89.4 2. taxable income from insurance claims in excess of the employer (or other policy-legal persons) the amount of insurance premiums paid (this provision 13. example 5). applying the law of article 7.4 89.5 the fifteenth part, income from the insurance indemnity paid under a life insurance contract (with storage), which concluded in the interest of the insured's employer (or other policyholders – legal person), comes to the end of the insurance contract, if the life insurance contract (with storage) has changed during the policyholder, insurance contracts are taken over physical person receiving insurance indemnity 89.5, distributed as follows: 1. taxable income from insurance compensation corresponding to the employer (or other policy-legal persons) insurance premiums paid around; 89.5 2. taxable income from insurance claims that correspond to the same physical person paid insurance premiums around; 89.5 3. taxable income from insurance claims in excess of the employer (or other policy-legal persons) and the same physical person paid some insurance premiums (this provision 13.6. example). This provision in paragraph 89.5 55.7 fixed income allocation principle is also applicable repurchase amounts paid, breaking the insurance contract before the deadline, in cases where the life insurance contract (with storage) has changed during the policyholder, insurance contracts are taken over the physical person who is to receive the amount of the repurchase. the application of the Act, article 11.11 55.7 a fourth part, the employer shall submit to the State revenue service, the following information: 1. information about 55.7 stock purchase rights plan participating corporations: 55.7 1.1. stock purchase rights plan (approval) of the Publisher's name, registration number and address; 1.2. the 55.7 shares of the company name, registration number and address where the shares will be purchased; 1.3. where shares purchases 55.7 rights apply to foreign capital companies (affiliated companies law "on corporate income tax"): 55.7 1.3.1. for stock purchase rights plan corporations responsible for the name, registration number and address; 55.7 1.3.2. information about it, or any costs associated with the purchase of the shares of the national implementation plan will be applied to an existing Corporation in Latvia or the permanent representation; 55.7 2. information on the criteria required to qualify for participation in the employee stock purchase plan, the implementation of the law, whether membership in the stock purchase rights plan qualifies all employees or only management level employees, or only employees who worked in a certain period, a corporation, or employees who meet the others – corporations raised – criteria; 55.7 3. information on the conditions for the purchase of shares on the date of the implementation of the rights of the employees could buy shares, indicating whether there are any conditions as sales plan execution, making profit, down to the employee's number of years worked in the purchase of shares in the Corporation law at the time of implementation or other conditions; 55.7 4. information about the stock purchase rights plan, the minimum stock purchase rights holding period: 55.7 4.1. date on which the employee is granted rights to buy shares in the future; 55.7 4.2. date by which employee will be allowed in the future to implement the stock purchase rights; 55.7 5. information about the possibilities to implement the share purchase rights when the employment relationship is terminated; 55.7 6. information about employee opportunities to dispose of shares allocated purchase rights or options to purchase shares of property rights in the event of death of the employee; 7. information about 55.7 stock purchase rights: 55.7 7.1 purchase of shares under the law the terms of the plan of implementation of the future number of shares to be purchased, the acquisition value, in particular currency; 7.2. share purchase 55.7 rights are granted for free to the employee or the employee stock purchase rights to be purchased for a fee (in this case, whether the employee stock purchase rights to buy or even a corporation withholds the payment from the employee's net salary); 55.7 7.3 the future purchase price of shares to be acquired (employee stock purchase option right at the end of the holding period to purchase shares of the company's shares with discount (below market price)); 55.7 8. employee information that confirmed their participation in the stock purchase rights plan: 55.7 8.1. name, surname and personal code; 8.2. share purchase 55.7 law number which the employee signed up; 55.7 8.3. number of shares to be acquired in the future; 55.7 8.4. the future purchase price of shares to be acquired. These provisions of 89.8 points on 55.7 information shall also be specified if the stock purchase rights plan provides for the grant of free shares, respectively, as the future stock price indicates a "0". "; 1.9. supplement 93. fourth sentence paragraph with the following: "this provision shall not apply to persons receiving retirement pension."; 1.10. delete paragraph 104; 1.11. Add to 106 in the second sentence by the following: "The rules referred to in paragraph 105 of document copies need not be given if the economic operator's registration status is likely to make sure public taxpayer register."; 1.12. Add to paragraph 107 after the word "documents" with the words "income or paying agent is not possible on the economic operator's registration status to make sure public taxpayer register"; 1.13. supplement with 109.1 points as follows: "this rule 109.1 109 certificate referred to in paragraph need not be given if the individual served: 109.1 1. reusable packaging to which the regulations apply in the deposit system; 109.1 2. reusable packaging, which the law does not apply in the deposit system; 3. glass 109.1 waste paper. "; 1.14. replace paragraph number "135.2.77" with the number "56"; 1.15. replace paragraph 137, the words "income of the Republic of Latvia in the disposal of immovable property" with the words and figures "article 3 of the law of the third subparagraph of paragraph 7.1 income"; 1.16.139. point be expressed as follows: "139. The insurance company with which the natural person has concluded a contract of life insurance (with storage), a month after agreement termination or partial cost of provision shall notify to the State revenue service, if this rule is issued 135.3. certificate referred or insurance company in accordance with article 19 of the law of the tenth paragraph 2 of part of electronically transmitted information to the State revenue."; 1.17. supplement with 145 points in the following wording: "145.55.7 and 89.8 points shall enter into force on 1 January 2013."; 1.18. Express example 1 of annex 1 of the following: "1. the employer pursuant to the insurance contract concluded for the period from March to February of the following year, in March about the employee paid health insurance premiums of 250 lats (total amount payable for the year). The extent of the employee's pay in all the months of the tax year total is 200 lats, or an average of 2400 dollars a month. The employee has not submitted an employer payroll tax, so the income from which must be deducted payroll tax is not deducted from the tax-exempt amount. 10% of gross income is 240 dollars. The insurance premium payment in excess of the annual amount is 10 lats (250-240 = 10). Calculating payroll tax and State social insurance payments, gross wages plus insurance premium payment excess amount: 200 + 10 = 210. State social security payments to be calculated and must be carried out, i.e., from 210 of the estimated salary and total: (11% of 210) + (24.09% of 210) = + 50.59 = 73.69 23.10 thus also from the calculation of the amount of excess State social security payments: (11% in 10) + (24.09% out of 10) = 1.10 + 2.41 = 3.51 payroll tax of 25% to be calculated from the salary of 200 lats (186.90 lats + insurance payment of the excess of the premium part 10 lats – State social insurance compulsory contribution share of workers 23.10): 25% of the excess thus 186.90 = 46.73 amounts calculated and deducted payroll tax 2.23 lats: 25% of (10.00-1.10) = 25% of 8.9 = 2.23. the payroll tax and the State social insurance compulsory contribution calculation for a given tax period, the unfolding, the relevant tax year law "on personal income tax" and the law "on State social insurance" – rates. "; 1.19. Annex 8 to be expressed as follows: "Annex 8 Cabinet 21 September 2010 No. 899 of the provisions of article 17.1 of law third-and fourth examples of application of part 1 of the staff the staff of the lessor to the lessee are certified documentary information about such person pay: 1) Anna Larsson (ID code 101080-XXXXX, Republic of Latvia, Riga), 400.00 dollars per month; 2) John Smith (personal code 011070-XXXXX, Republic of Latvia, Riga), the lats month 300.00; 3) Juris Vītoliņš (ID number 011175-XXXXX, Republic of Latvia, Riga), 200.00 dollars a month. Anne Dodsworth's monthly taxable income is 259.64 lats (400 – 35.09% (11% of the State workers social security payments and 24.09% national employers ' compulsory social insurance contributions) = 256.99). Individual income tax from the month of Anna Larsson wage is 64.91 lats (25% of 259.64). John Smith's monthly taxable income is $194.73 (300-35.09% (11% of the State workers social security payments and 24.09% national employers ' compulsory social insurance contributions) = 194,73). Individual income tax from John Smith's monthly wage is 48.68 lats (25% of 194,73). Jura vitolina monthly taxable income is $129.82 (200-35.09% (11% of the State workers social security payments and 24.09% national employers ' compulsory social insurance contributions) = 129,82). Individual income tax from John Smith's monthly wage is 32.46 lats (25% of 129,82). 2. the staff of the lessor, the lessee of the staff information about three people a month pay 1500.00 lats. In this case, each person's monthly taxable income is $324.55 ((1500:3) – 35.09% (11% of the State workers social security payments and 24.09% national employers ' compulsory social insurance contributions) = 324,55). Individual income tax from each employee's monthly wage is 81.14 lats (25% of 324,55). Making the payroll tax and the State social insurance compulsory contribution calculation for a given tax period, the unfolding, the relevant tax year law "on personal income tax" and the law "on State social insurance" – rates. "; 1.20. to supplement the provisions of annex 12 to the following: ' Annex 12 Cabinet 21 September 2010 the regulations No 899 units of Latvian Olympic athlete nutrition spending (per day per person) no PO box Sport load group rate ($) 1. Rowing force 14.60 2. Badminton strength – strength 11.30 3. Biathlon strength 14.60 4. Bobsleigh: 4.1. Bobsleigh force 14.60 4.2. force 5. skeletons 14.60 Boxing strength 14.60 6. Fight: 6.1. free fight force 14.60 6.2. Greek-Roman fight force 14.60 7. Judo power 14.60 8. Table tennis strength – strength 11.30 9. Equestrian sport endurance-strength 11.30 10. Luge sports strength 14.60 11. Canoeing: 11.1. Canoe force 14.60 11.2. Kayaking the 14.60 12 force. Curling technical 7.72 13. Archery technical 7.72 14. Modern pentathlon power 14.60 15. Endurance-power fencing at 11.30 16. Beach Volleyball strength – strength 11.30 17. Cycling: 17.1. BMX power 14.60 17.2. mountain biking strength 14.60 17.3. Road force 14.60 17.4. Trek cycling force 14.60 18. Skiing: 18.1. cross-country skiing force 14.60 18.2. endurance-power freestyle 11.30 18.3. Ski force 14.60 18.4. snowboarding endurance-strength 11.30 18.5. tramplīnlēkšan strength-strength 11.30 18.6. Nordic combined force of resistance-11.30 19. Skating: 19.1. speed skating at the force of resistance-11.30 19.2. Figure skating endurance-strength 11.30 19.3. šorttrek of strength-strength 11.30 20. Weightlifting force 14.60 21. Shooting technical 7.72 22. Tae Kwan do force 14.60 23. Tennis strength – strength 11.30 24. Triathlon force 14.60 25. Aquatics: 25.1. diving at the force of resistance-11.30 25.2. swimming force 14.60 25.3. synchronized swimming endurance-strength 11.30 26. Athletics: 26.1. sprints power 14.60 26.2. the average distance force 14.60 26.3. long distance endurance force 11.30-26.4. throwing discipline force 14.60 27. Gymnastics: 27.1. strength-strength trampoline 11.30 27.2. artistic gymnastics technical 7.72 17.0. Sports gymnastics strength 14.60 28. Zēģelēšan force 14.60 "1.21. to supplement the provisions of annex 13 with the following: ' Annex 13 Cabinet 21 September 2010 No. 899 Law provisions of article 7.4 of part 4, the 11th and the transitional provisions in paragraph 85, as well as the law of article 7.4, and thirteenth fourteenth fifteenth part of application of natural person 1 January 2, 2008 to five years concluded the life insurance contract (with the funds accrual) that provision provides for partial payment of the duration of the contract. The outset made a one-off payment of insurance premiums 10 000 lats. The duration of the contract the following costs: a partial accrual of 30 December – 1 000 LVL, 2009 December 30 – 1 000 LVL, 30 June 2010 – 1 000 LVL, 31 March 2011 – 1 000 LVL, 2011 December 30 – 1 000 LVL, 31 March 2012-9 000 lats, 2012 December 30 – 1 000 lats. * Partial cost savings of 30 December 2009 and 30 December partial cost savings 2 000 lats made before the introduction of capital income taxation with income tax, therefore, taxable income is not taken into account in the calculation. * Partial accrual cost 30 June 2010 in accordance with the transitional provisions of the law 85 calculation is performed: – taxable income = partial cost savings – all the time in the insurance contract the insurance premium amount (1 000 – 10 000 =-9 000). Whereas the difference is negative, the taxable income is not formed and the next part of the cost of the time savings taxable income shall be determined in accordance with the transitional provisions of the Act 85. * Partial accrual cost 31 March 2011 and on 30 December, in accordance with the transitional provisions of the law 85. point calculation is performed: – taxable income = (current partial accrual cost + all the above (after 31.12.2009) partial stock make cost) – all the time in the insurance contract the insurance premium amount: · 31.03.2011. → (1 000 + 1 000) = 10 000 to 8 000-; · 30.12.2011. → (1 000 + 1 000 000 + 1) – 10 000 =-7 000. Whereas the difference is negative, the taxable income is not formed and the next partial accrual costs once again the taxable income determined in accordance with the transitional provisions of the Act 85. * Partial accrual cost 31 March 2012 in accordance with the transitional provisions of the law 85 calculation is performed: – taxable income is 2 000 lats ((1 000 + 1 000 000 + 1 000 + 9) = 2 000 – 10 000); -personal income tax is 200 lats (10% of the 2 000 = 200). The result is positive, so the subsequent partial accrual cost times the taxable income determined in accordance with the transitional provisions of the Act 85. * Partial accrual cost 2012 on 30 December in accordance with the transitional provisions of the law 85. point calculation is performed: – taxable income is 1 000 LVL = (current partial accrual cost + all the above (after 31.12.2009) partial stock make cost) – all the time in the insurance contract the insurance premium amount for the previous partial accrual cost times the prescribed taxable income amount ((1 000 + 1 000 000 + 1 + 9 + 1 000 000) – 10 000-2 000 1 000); -personal income tax is 100 lats (10% of 1000 = 100). 2. A natural person itself made the payments insurance premiums. Life insurance (with accumulation of assets) at the end of the period the amount of the claims is 14 400 lats, including all relevant during the insurance contract the insurance premium amount is 12 000 lats and income from the insurance contract is 2 400 lats. The cost of the guaranteed period is 10 years (01.01.2012.-31.12.2021.): – taxable income is 2 400 lats (14 400-12 000 = 2 400);
-personal income tax is 240 million lats (10% of 2 400 = 240);
-the cost of the launch in January of 2012, paying 118 pounds per month ((14 400-240): 10:12);
-up to 2012 5 February, insurance company budget installment of withholding personal income tax 240 lats (in accordance with article 17 of the law of the tenth or the twelfth article 17). 3. the employer of the employee making the insurance premium payments. Life insurance (with accumulation of assets) at the end of the period the amount of the claims is 14 400 lats, including all relevant during the insurance contract the insurance premium amount is 12 000 lats and income from the insurance contract is 2 400 lats. The cost of the guaranteed period is 10 years (01.01.2012.-31.12.2021.): – taxable income is 14 400 lats (12 000 + 2 400 = 14 400);
-personal income tax has 3 240 million lats (10% of 2 400 = 240 and 25% of the 12 000 = 3 000);
-the cost of the launch in January of 2012, paying out 93 Lats per month ((14 400 – 3 240): 10:12);
-up to 2012 5 February, insurance company budget installment of withholding personal income tax 3 240 lats (in accordance with article 17 of the law of the tenth or the twelfth article 17). 4. A natural person itself made the life insurance premium payments. Life insurance (with accumulation of assets) at the end of the period the amount of the claims is 14 400 lats, including all relevant during the insurance contract the insurance premium amount is 12 000 lats and income from the insurance contract is 2 400 lats. The cost of the guaranteed period is 10 years (01.01.2012.-31.12.2021.). The cost of the launch in January of 2012, paying 118 pounds per month ((14 400-240): 10:12), provided that the personal income tax is paid at the first cost. During the year, the cost is 1 416 dollars (118 x 12 = 1 416). The remaining claims and income from first time calculated is 12 744 lats. 2012 year of claims has risen to 14655.60 lats, therefore takes part payable adjustment: – taxable income is 1911.60 (14655.60-12 744 = 911,60 1);
-individual income tax is 191.16 lats (10% of 1911.60 = 191,16);
-the insured person's income from capital at the individual income tax payment is 1720.44 lats (1911.60-1 191.16 = 720,44);
-the remainder of the guarantee period of the monthly cost of the insured person the cost increase by LVL 15.93 (1720.44:9: 12) and the month will 133.93 lats (118 + 15.93 = 133,93);
-the first increase in the cost is launched in January 2013;
-up to 2013 5 February, insurance company budget installment of withholding personal income tax 191.16 lats (in accordance with article 17 of the law of the tenth or the twelfth article 17). 5. the employer of the employee by a life insurance premium payments. Life insurance (with accumulation of assets) at the end of the period the amount of the claims is 14 400 lats, including all relevant during the insurance contract the insurance premium amount is 12 000 lats and income from the insurance contract is 2 400 lats. Insurance compensation is paid out by the insurance contract expiration.
-the taxable income is 14 400 lats (12 000 + 2 400 = 14 400);
-personal income tax has 3 240 million lats (10% of 2 400 = 240 and 25% of the 12 000 = 3 000). 6. the employer of the employee by a life insurance premium payments. Life insurance (with storage) has been taken over by the staff member concerned, which after the takeover of the insurance contract made the payments insurance premiums. Life insurance (with accumulation of assets) at the end of the period the amount of the claims is 14 400 lats, including all relevant during the insurance contract the insurance premiums totaling 12 000 lats, of which the employer paid the insurance premium amount is 10 000 LVL, the employee after the takeover of the insurance contract the insurance premium amount is 2 000 lats, but the income from the insurance contract is 2 400 lats. -the taxable income is 12 400 lats (10 000 + 12 2 400 = 400); -personal income tax is 2 740 pounds (10% and 25% of 2 400 = 240 = 10 000 2 500). " 2. Be declared unenforceable in the Cabinet on 1 November 2005, the regulations no 821 "rules for Latvian Olympic athlete nutrition unit of the amount of costs and expenses" (Latvian journal, 2005, no. 176; 2006, 114 no; 2009, no. 81). Prime Minister v. dombrovsky Finance Minister a. Wolf