As part of the Budget for 2015, adopted 17 December 2014, new rules apply for the tax treatment of non-resident income from management and consultancy fees paid by Latvian residents, and rental income from the use of property in Latvia.
Under the new rules, non-resident companies have the option to apply the corporate tax rate (15%) instead of the final withholding tax rates if they are resident in an EU Member State or a jurisdiction that has entered into a tax treaty with Latvia. The withholding tax rate on management and consultancy fees is 10%, while the tax rate for rent is 5%.
The new rules apply from 1 January 2015, and the option may be exercised when filing the Latvian tax return.
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