Updates to the list of low tax or tax-free countries and territories 

The Cabinet Regulation of 17 December 2020 ‘Regulations Regarding Low-Tax or Tax-Free Countries and Territories’ is expected to be amended, from 1 January 2023, by supplementing the list of low-tax or tax-free countries and territories with three new jurisdictions:

• Anguillan territory;
• Commonwealth of The Bahamas;
• Turks and Caicos Islands Territory.

Thus, should the amendments be approved, effective from 1 January 2023, the list of low-tax or tax-free countries and territories will contain twelve jurisdictions:

• Anguillan territory,
• Territory of American Guam,
• Territory of American Samoa,
• Territory of the U.S. Virgin Islands,
• Commonwealth of The Bahamas,
• the Republic of Fiji,
• the Republic of Palau,
• the Republic of Panama,
• the Independent State of Samoa,
• Turks and Caicos Islands Territory,
• the Republic of Trinidad and Tobago,
• the Republic of Vanuatu.

The aim of the Cabinet Regulation’s draft amendment is to match the EU list of non-cooperative jurisdictions for tax purposes updated on 4 October 2022.

Please note that the list of low-tax or tax-free countries and territories should be used both for the purposes of corporate income tax and personal income tax.

 

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The article provides an insight into what KPMG Baltics SIA considers to be key changes in tax legislation in the 4th quarter of 2022.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Marina Mihailova, Assistant Manager in Tax, KPMG in Latvia