Introduction On 1 January 2026, amendments to Article 15.² of the “Law on Taxes and Duties” entered into force, introducing several significant changes to Latvia’s transfer pricing regulation. The aim of these amendments is to expand documentation requirements, introduce a more structured reporting system, refine applicable thresholds, and strengthen the tax administration’s oversight tools. [...]

Impact of transfer pricing on the financial statements Transfer pricing refers to the pricing of the sale of goods, the provision of services or the transfer of assets (including intangible assets) between different related companies within the same group, usually in different countries. Although transfer pricing is mainly applied in transactions with foreign companies, [...]

Content of transfer pricing documentation and prior agreement On 18 December 2018 Cabinet of Ministers Regulation No. 802 “The documentation of transfer pricing and the order, according to which the prior agreement between the tax payer and the tax administration on providing the market price (value) for a transaction or a transaction type must [...]

Amendments to the Commercial Law were adopted on 15 June 2017, stating, among other things, significant changes in relation to transactions with related persons. The amendments came into force on 13 July 2017. Until now the procedure for the affiliation of the related persons and agreements between them was regulated by Chapter 1.1. „Restrictions for [...]

There are many reasons why select Latvia as a place for establishing the manufacturing facilities for the production for the needs of the group. Among other advantages we may mention excellent geographic location, developed infrastructure and qualified work-force. In this article we focus on an advantage of Latvian tax rate and available functional models [...]