Latvia - Special considerations for short-term assignments

Latvia - Special considerations for short-term..

Taxation of international executives

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Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

There are no special residency considerations for short-term assignments. The same rules as described previously for determining residency are applicable.

Payroll considerations

Are there special payroll considerations for short-term assignments?

No special considerations apply for short-term assignments.

Taxable income

What income will be taxed during short-term assignments?

Subject to tax treaty relief, all of the income relating to duties performed in Latvia will be taxable.

If the assignee is not resident in Latvia, income relating to non-Latvian duties will not be taxable.

Additional considerations

Are there any additional matters that should be considered before initiating a short-term assignment in Latvia?

It is possible that the tax treaty between the assignee’s country of residence and Latvia will be relevant. Consequently, it should be considered carefully.

Detailed records should be maintained of the time which the assignee spends in Latvia and of his/her work activities, both in Latvia and elsewhere, during the assignment.

© 2017 KPMG Baltics SIA, a Latvian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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