Beneficial owners – Latvia

15.07.2022

The following types of beneficial owner are recognised for tax purposes in Latvia

Government bonds

Beneficial owner

Tax Rate

Non-resident legal entity

0%

Non-resident legal entity resident in a tax haven country

20%

Non-resident individual

0%

Non-resident individual resident in a tax haven country

20%

Latvian resident legal entity (interest is included in the taxable corporate income subject to a 15% corporate income tax)

0%

Latvian individual

0%

Corporate bonds

Beneficial owner

Tax Rate

Non-resident legal entity

0%

Non-resident legal entity resident in a tax haven country

20%

Non-resident individual (if it constitutes interest from publicly traded financial instruments)

0%

Non-resident individual, if:

  • if it does not constitute interest from publicly traded financial instruments; or
  • if it constitutes interest from a First North corporate bond, although this may not be applied by all issuers; or
  • resident in a tax haven country

20%

Latvian resident legal entity (if interest is included in the taxable corporate income subject to a 15% corporate income tax)

0%

Latvian individual

20%

Equities

 

Beneficial owner

Tax Rate

Non-resident legal entity

0%

Non-resident legal entity resident in a tax haven country

20%

Non-resident individual (profits earned after 31 December 2017)

0%

Non-resident individual, if:

- resident in a tax haven country; or

- profits earned prior 31 December 2017 paid in 2020 and afterwards)

20%

Latvian resident legal entity

0%

Latvian individual (profits earned after 31 December 2017)

0%

Latvian individual (profits earned prior 31 December 2017 paid in 2020 and afterwards)

20%

Investment funds

 

Beneficial owner

Tax Rate

Non-resident legal entity

0%

Non-resident legal entity resident in a tax haven country

20%

Non-resident individual (profits earned after 31 December 2017)

0%

Non-resident individual, if:

- resident in a tax haven country; or

- profits earned prior 31 December 2017 paid in 2020 and afterwards)

20%

Latvian resident legal entity

0%

Latvian individual (profits earned after 31 December 2017)

0%

Latvian individual (profits earned prior 31 December 2017 paid in 2020 and afterwards)

20%