Do I have to pay taxes from the acquired profit?

When making interest payments to non-residents, the issuer of Securities is obliged to withhold income tax (“WHT”) at the moment of the payment. The standard WHT rate in Latvia is 20%, but for tax residents of another country of the European Economic Area (EEA – consisting of member states of the European Union and Iceland, Liechtenstein, and Norway) the withholding tax rate is 5%. You are still obliged to declare your income to your local tax authority, and the tax payable should be reduced by the amount withheld. For further details please consult with your local tax authority.

Was it helpful?