Number of advisors: 55
Network memberships: 1,600+ offices with a global presence in over 167 countries
Languages: English, Latvian, Russian, Swedish, Portuguese
BDO Latvia Tax department is known for its strong expertise in tax advisory and tax structuring. BDO tax team consists of specialists familiar with the applicable laws and regulations, and recent developments in legislation. We can find practical solutions to any tax issues in Latvia and worldwide, including value-added tax and corporate income tax applications. BDO Latvia provides advice on direct and indirect tax, and handles transfer pricing and tax due diligence matters as well as resolves tax disputes and represents clients in court.
Close collaboration with colleagues from other local BDO service lines (Accounting, Legal, Audit, Corporate Finances) has resulted in a successful completion of complex multidisciplinary projects.
BDO Latvia has seen growth in new products range embedded as business support services for Fintech companies to plan their operations more efficiently. In addition, BDO Latvia is offering new services to local and foreign wealthy individuals, helping clients find the most appropriate solutions to various situations related to relocation tax planning, business succession, investments, inheritance and other issues. BDO Law is an independent juridical company that has provided advice on all aspects of business law in Latvia since 2007 and is an associate of BDO, one of the leading global groups of auditing and financial advisory services providers.
Corporate tax matters
Restructuring legal entity and thin capitalisation optimisation - BDO Law assisted the client and prepared all the necessary documents for investment in-kind made by the Client and when increasing Client’s share capital.
Tax consultations included comprehensive tax analysis of corporate income tax, values added tax, and real estate Land Register’s fees. Tax Department prepared 4 Company restructuring scenarios which were an alternative solution for liquidation process. As well, Firm’s Tax Department prepared and implemented a corporate income tax thin capitalization solution for financial years 2020 and 2021.
Subsequently, the Client implemented one of the suggested scenarios and saved EUR 440 000 in comparison to its original liquidation plan.
Tax matters of SE relocations and destination research - BDO Law converted the bank from AS (Joint Stock Company) to SE (Societas Europaea).
Tax Department provided an opinion on tax aspects related to the transfer of the head office of a SE from Latvia to another country. As well, provided services regarding the comparison of tax environment in three possible destination jurisdiction - Germany, Estonia, and Lithuania. Provided an opinion on tax aspects related to the transfer of the head office of a SE from Latvia to another country.
The tax scope of this comparison included specifics of tax residence related matters, corporate income tax, including taxation of dividend distribution and relevant tax treaties, value added tax in accordance with Council Directive 2006/112/EC, salary taxes. As well as memorandum on comprehensive tax risk assessment of head office exit from Latvia was included.
Tax Structuring project - BDO Tax Department prepared consultations regarding the development of tax efficient structure for Client to expand its business to U.S.
The Project was divided into three phases. First phase was provided to the Client during 2020, this phase included:
Preparation of full-scope Transfer Pricing documentation - BDO prepared full scope transfer pricing documentation, including master file and local file, for a broad range of intra-group transactions for the purpose of tax-efficient business operations for submission to State Revenue Service.
Transfer pricing documentation involved analysis of compliance with the arm’s length principle for group companies in Latvia, Europe, and Russia. This documentation covered transactions such as:
This matter covered documentation of complex supply chain transactions, since client is an international company, with subsidiaries worldwide.