On initial declaration of private individual’s financial standing

Triniti

As of 15 December 2011 the Law on Declaration of Private Individual’s Financial Standing and Undeclared Income enters into force, which sets obligation of Latvian residents (private individuals, who are Latvian citizens or foreigners with permanent residence permit or permanent residence certificate in Latvia) to submit to the State Revenue Service declaration of financial standing, if regarding their property, financial means and liabilities at least one of the following criteria is met:

–    real estate is owned or co-owned abroad
–    real estate or parts thereof are owned in Latvia, ownership to which is not registered according to legislative acts of the Republic of Latvia and the total value of which exceeds 10,000 LVL;
–    transport vehicle (mechanical land or marine transportation vehicle) or aircraft is owned or co-owned abroad;
–   shares with total acquisition value above 10,000 LVL are owned in Latvia;
–    shares are owned abroad;
–    financial instruments with total acquisition value exceeding 10,000 LVL are owned in Latvia;
–    financial instruments are owned abroad;
–    total amount of money savings (cash and non-cash) in Latvia and abroad, or only in Latvia, or only abroad exceeds 10,000 LVL;
–    total amount of financial means accrued in private pension funds or life assurance contracts (with accruals) in Latvia or abroad exceeds 10,000 LVL;
–    has outstanding loans (debt) or other liabilities with unpaid share exceeding 10,000 LVL;
–    a person in Latvia or abroad has issued loans or has other claims with outstanding share exceeding 10,000 LVL;
–    owns other property (object or set of objects) in Latvia or abroad with value exceeding 10,000 LVL in person’s own view;
–    a person is true beneficiary from shares or financial instruments owned or managed by other person, if total acquisition value of such property exceeds 10,000 LVL;

The declaration of financial standing should reflect situation as at 24:00 of 31 December 2011.

When submitting declaration of financial standing, persons can voluntarily declare income tax taxable income gained in the period from 1 January 1999 to 31 December 2007. Reduced individual income tax of 15% is applied to such income.

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