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Amendments to the law "On Personal Income Tax"

Dear Customers,

We would like to inform You that starting from January 1, 2010 amendments to the law "On Personal Income Tax" (hereinafter – the Law), will become effective.

In this regard, we would like to draw your attention to main changes that will affect you as the Customer of AS "UniCredit Bank" (hereinafter – the Bank).

 

The Law applies only to natural persons who are LR residents, LR non – residents and individual business owners who have gained such income and were not imposed with corporate income tax.

 

Under the Law the taxable amount inter alia will be Your interest income and an interest equivalent income, as well income associated with the interest income gained by using such Bank's treasury products as savings account, standard term deposit, collateral deposit and others.

 

 The Law states that starting from January 1, 2010 interest income tax is 10%. It should be emphasized that the tax will be withheld only from profits interest but not from the entire deposit amount.

 

Due to the Law the Bank will be obliged to withhold tax from earned interest income as of March 1, 2010. At the same time we inform You that from January 1, 2010 up to February 28, 2010 the Bank will retain the right not withhold tax from the taxpayer received interest income, and until March 15, 2010 will provide the State Revenue Service with information about natural persons with interest earned in accordance with the transitional provisions of the Law, 56th Article.

 

Consequently, You as the Bank’s Customer and taxpayer will have to take the following steps:

 

1) The Tax Payer, who during the period from January 1, 2010 to February 28, 2010 under the Law has received interest income from which tax is not withheld at the Bank, does the tax calculation and budget lodging in recapitulatory order, if the tax amount for the period is not more than 5 Latvian lats.

 

2) The Tax Payer, who during the period from January 1, 2010 to February 28, 2010 under the Law has received interest income from which tax is not withheld at the Bank, and the amount of tax on interest income for the period exceeds 5 Latvian lats, submits to the State Revenue Service declaration of income from capital until March 31, 2010 and does budget lodging for tax amount until April 15, 2010. The Cabinet of Ministers of the Republic of Latvia prepares form of declaration of income from capital and filling procedure until January 1, 2010.

 

 

 

Sincerely Yours,

 

AS „UniCredit Bank”