General information - types of securities, deadlines, other market specifics - Latvia

15.07.2022

Types of securities eligible in Clearstream Banking

The eligible securities issued in Latvia are as follows:

  • Government bonds;
  • Corporate bonds;
  • Equities.
  • Investment funds

Withholding tax Services

Government bonds

Beneficial owner

Relief at
source

Quick
refund

Standard
refund

Non-resident legal entity

Yes

No

No

Non-resident legal entity resident in a tax haven country

No

No

No

Non-resident individual

Yes

No

No

Non-resident individual resident in a tax haven country

No

No

No

Latvian resident legal entity (interest is included in the taxable corporate income subject to a 15% corporate income tax)

Yes

No

No

Latvian individual

Yes

 

No

Corporate bonds

Beneficial owner

Relief at
source

Quick
refund

Standard
refund

Non-resident legal entity

Yes

No

No

Non-resident legal entity resident in a tax haven country

No

No

No

Non-resident individual (if it constitutes interest from publicly traded financial instruments)

Yes

No

No

Non-resident individual, if:

  • if it does not constitute interest from publicly traded financial instruments; or
  • if it constitutes interest from a First North corporate bond, although this may not be applied by all issuers; or
  • resident in a tax haven country

No

No

No

Latvian resident legal entity (if interest is included in the taxable corporate income subject to a 15% corporate income tax)

Yes

No

No

Latvian individual

No

No

No

Equities

Relief at
source

Quick
refund

Standard
refund

Beneficial owner

Tax Rate

Non-resident legal entity

Yes

No

No

Non-resident legal entity resident in a tax haven country

No

No

No

Non-resident individual (profits earned after 31 December 2017)

Yes

No

No

Non-resident individual, if:

- resident in a tax haven 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

Investment funds

Relief at
source

Quick
refund

Standard
refund

Beneficial owner

Tax Rate

  

Non-resident legal entity

Yes

No

No

Non-resident legal entity resident in a tax haven country

No

No

No

Non-resident individual (profits earned after 31 December 2017)

Yes

No

No

Non-resident individual, if:

- resident in a tax haven 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 Banking on income paid on Latvian securities are as follows:

  • 0% on interest from government bonds;
  • 0% on interest from corporate bonds;
  • 0% on dividend from equities:
  • 0% on dividend from investment funds

The above default rates are following Latvian tax legislation, which does currently not clarify whether the tax rate must be applied based on the list of the final beneficial owners of the securities or on the nominee holder status and residency.

Clearstream Banking being the nominee for Latvian securities, income may therefore be paid, by default, gross based on its status and residency. However despite such possibility, customers 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 Banking Market Profile - Latvia.

Capital Gains Tax

There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not provide assistance in this regard. Please consult your tax advisor for further information.