Latvia Tax Agency Publishes Information on Taxation of Income From Reduced Loan Interest Payments

The Latvian State Revenue Service July 7 published information on the taxation of income generated when the notional market rate of interest is higher than the rate chargeable under the loan agreement. Topics covered include: 1) the individual income taxation of income generated from reduced interest payments; 2) the qualifying borrowers that must pay individual income tax on reduced interest income, and the specified lenders; 3) methods for determining the income generated because of the difference in interest rates; 4) the income disbursement period; 5) the progressive tax rates for interest income; 6) the requirement for a borrower to declare ...