The Government of Latvia decided to include the Russian Federation in the list of countries and territories with a low level of taxation or no tax at all from July 1, 2023.
This is reported by Delfi.
In addition to Russia, the list of offshores also includes the British Virgin Islands, Costa Rica, and the Republic of the Marshall Islands. The Ministry of Finance of Latvia urged taxpayers to pay special attention to transactions with persons located, established or registered in these countries and territories.
These countries were added to the offshore list because they do not cooperate in the field of taxation of the European Union (EU), which was updated on February 14, 2023.
The Ministry of Finance of Latvia explained that the new regulations contain a direct reference to the EU list and its regular updating in order to avoid further regular technical changes and to ensure the most efficient and timely response to changes in the EU list.
The Ministry of Finance reminded that the regulatory legal acts of Latvia regulating the field of direct taxation provide for a special tax regime (protective measures) in case of transactions with persons who are located, established or registered in countries and territories with a low or zero level of taxation.
It was previously reported that people who received financial benefits and actively supported the regime of Vladimir Putin in the Russian Federation continue to work unhindered in Latvia.
