General information - types of Vestima fund securities, deadlines, other market specifics - Latvia - CFCL
Reference
Types of Vestima fund securities eligible in Clearstream Fund Centre
The eligible Vestima fund securities issued in Latvia are as follows:
- Investment funds.
Withholding tax Services
Investment funds | Relief at | Quick | Standard |
Beneficial owner | Tax Rate | ||
Non-resident legal entity | Yes | No | No |
Non-resident legal entity resident in a tax heaven country | No | No | No |
Non-resident individual (profits earned after 31 December 2017) | Yes | No | No |
Non-resident individual, if: - resident in a tax heaven country; or - profits earned prior 31 December 2017 paid in 2020 and afterwards) | No | No | No |
Latvian resident legal entity | Yes | No | No |
Latvian individual (profits earned after 31 December 2017) | Yes | No | No |
Latvian individual (profits earned prior 31 December 2017 paid in 2020 and afterwards) | No | No | No |
Applicable default withholding tax rates
The default rates of withholding tax applicable in Clearstream Fund Centre on income paid on Latvian Vestima fund securities are as follows:
- 0% on paid income/distributions from investment funds:
The above default rates are following Latvian tax legislation, which currently does not clarify whether the tax rate must be applied based on the list of the final beneficial owners of the Vestima fund securities or on the nominee holder’s status and residence.
Clearstream Fund Centre being the nominee for Latvian Vestima fund securities, income may therefore be paid, by default, gross based on its status and residence. However, despite such possibility, clients must disclose all beneficial owners that are not eligible for tax exemption in order to comply with the Latvian standard withholding tax rates, as per described in the relief at source sections.
Holding restrictions
Please refer to the “Investment regulation” section of the Clearstream Fund Centre Market Profile - Latvia.
Capital Gains Tax
There is no capital gains tax withheld through Clearstream Fund Centre on Vestima fund securities held in Clearstream Fund Centre. Capital gains tax may however be payable on specific gains. Clearstream Fund Centre does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through Clearstream Fund Centre on Vestima fund securities held in Clearstream Fund Centre. Stamp duty may however be payable on specific transactions. Clearstream Fund Centre does not provide assistance in this regard. Please consult your tax advisor for further information.