International Tax Advisory for Businesses in Latvia
Confidentum advises international groups, foreign-owned companies and investors on Latvian tax in a cross-border context. We cover Latvian corporate income tax on distributed profits, withholding tax and double tax treaties, transfer pricing and other documentation requirements, permanent establishment risk, and tax structuring for market entry into Latvia.
Overview
Latvia taxes corporate profits differently from most countries, which matters for dividend planning, intercompany pricing and group structures. We give practical, documented advice that your group tax team and auditors can rely on.
Who this service is for
- International groups with a Latvian subsidiary or branch
- Investors evaluating Latvia as a location
- Foreign companies with employees or activities in Latvia
- Groups with intercompany loans, services or royalties involving Latvia
What is included
Corporate income tax
Advice and compliance under the Latvian corporate income tax model, which taxes distributed profits and deemed distributions rather than annual accounting profit.
Transfer pricing and documentation
We assess whether you need transfer pricing documentation and other documents, such as a non-resident's certificate of tax residence when paying for consulting services, and advise how to put them in order.
Withholding tax and treaties
Withholding tax on payments to non-residents and application of double tax treaties.
Permanent establishment
Assessment of permanent establishment risk for foreign companies operating or employing staff in Latvia.
Market entry structuring
Comparison of subsidiary, branch and other structures for entering Latvia, from a tax and compliance perspective.
Tax due diligence
Tax review of Latvian targets for investors and acquirers.
How we work
Define the question
We agree the scope, facts and decisions the advice needs to support.
Analysis
We analyse Latvian law, treaty positions and group policies relevant to the question.
Written advice
You receive a clear written memo in English with recommendations and risks.
Implementation
We help implement the advice in accounting, filings and documentation.
Why Confidentum
- Advice tied to how your accounts and filings actually work
- Experience with international group structures
- Practical, decision-ready memos in English
- An experienced specialist on every advisory question
Related case studies
International Tax Advisory: frequently asked questions
How does corporate income tax work in Latvia?
Latvia applies corporate income tax mainly when profits are distributed, for example as dividends, or treated as deemed distributions such as certain non-business expenses. Retained and reinvested profits are generally not taxed until distributed. Under the standard regime distributed profit is taxed at 20% CIT; for dividends there is also an alternative regime of 15% CIT plus 6% personal income tax.
Does a Latvian subsidiary need transfer pricing documentation?
Latvian companies with transactions with related parties may be required to prepare transfer pricing documentation, depending on transaction volumes. We assess whether you need it and advise how to put it in order.
Should we set up a branch or a subsidiary in Latvia?
It depends on liability, profit repatriation, substance and administrative needs. We compare the tax and compliance consequences of each option for your specific situation.
Discuss your Latvian accounting, tax or VAT requirements
Tell us about your structure and obligations in Latvia. An experienced specialist will review your situation and recommend the right scope.