Changes due to amendments to law “On Personal Income Tax”

February 10, 2010 / Banking

On 01.01.2010, amendments to law “On Personal Income Tax” became effective, pursuant to which individuals (Latvian residents and non-residents) shall be subject to tax on income from capital and capital gains tax.


Type of income

Tax rate for residents

Tax rate for non-residents

Interest income from deposits

10%

10%

Dividend income from shares of capital and stocks issued by an issuer registered in the Republic of Latvia

10%

10%

Dividend income from shares of capital and stocks issued by a foreign issuer

10%

-

Interest income from debt securities issued by an issuer registered in the Republic of Latvia

10%

10%

Interest income from debt securities issued by a foreign issuer

10%

-

Income from alienation of financial instruments

15%

-


The bank will itself withhold and transfer to the state budget the tax on:

1) interest income from deposits;

2) dividend income from shares of capital and stocks

3) interest income (coupon) from bonds issued by JSC “Aizkraukles banka”.

In other instances, the taxpayer itself should transfer the tax amount to the state budget.

Additional information:
Ilmars Jargans
Aizkraukles Banka
+ 371 6777 5296
ilmars.jargans@ab.lv