Latvia Tax Agency Updates Methodological Material on Tax Applicability for Timber Transactions

The Latvian State Revenue Service Feb. 4 issued updated methodological material on the application of individual income tax and VAT on timber transactions. Topics covered include: 1) a 10 percent individual income tax on income from the sale of growing forests or timber, which must be withheld and paid by the taxpayer; 2) progressive individual income tax rates for registered economic activities, effective until Dec. 31, 2024, at 20 percent up to 20,004 euros (US$20,837), 23 percent from 20,004 euros to 78,100 euros (US$81,343), and 31 percent above 78,100 euros; 3) new tax rates beginning Jan. 1, at 25.5 percent ...