close
Share with your friends

Latvia - Special considerations for short-term assignments

Latvia - Special considerations for short-term..

Taxation of international executives

1000

Related content

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 a resident in Latvia, income relating to non-Latvian duties will not be taxable.

Additional considerations

What income will be taxed during short-term assignments?

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/jurisdiction 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 their work activities, both in Latvia and elsewhere, during the assignment.

Footnote

1. For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.

Disclaimer:

All information contained in this publication is summarized by KPMG Baltics AS, a Latvian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on law “On personal income tax”, the Web site of Ministry of Finance Republic of Latvia, law “On State social insurance”, the Web site of State Social Insurance Agency.

© 2021 KPMG Baltics AS, a Latvian joint stock companyand a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today