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

Regulations regarding low-tax, tax-free countries and territories expected to be amended

Regulations regarding low-tax, tax-free countries and territories expected to be amended

The “Regulations Regarding Low-Tax or Tax-Free Countries and Territories” (17 December 2020) are expected to be amended, from 1 January 2023, to add the following three jurisdictions to the list of low-tax or tax-free countries and territories:

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

With the approval of the amendments, 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

KPMG observation

The aim of the draft amendment is to match the EU list of non-cooperative jurisdictions for tax purposes.

Note that the list of low-tax or tax-free countries and territories needs to be used both for the purposes of corporate income tax and individual (personal) income tax.

Read a December 2022 report prepared by the KPMG member firm in Latvia

 

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