Latvia Tax Agency Issues Methodological Material on Taxation of Income from Exercising Stock Purchase Rights

The Latvian State Revenue Service Feb. 4 issued updated methodological material on the taxation of income from exercising stock purchase rights. Topics covered include: 1) that income from exercising stock purchase rights granted by an employer is subject to personal income tax and mandatory state social insurance contributions; 2) that income from selling the rights or shares acquired from exercising the rights is considered capital gains and taxed at 25.5 percent; 3) that stock purchase rights may be non-taxable if held for at least 12 months, the employee remains with the company, the employer submits the plan to the SRS, ...