General information - types of securities, deadlines, other market specifics - Latvia
Types of securities eligible in LuxCSD
The eligible securities issued in Latvia are as follows:
- Government bonds;
- Corporate bonds;
- Equities.
- Investment funds
Withholding tax Services
Relief at source and reclaim of withholding tax are not currently available through LuxCSD, as 0% withholding tax is applied, by default, on income payments from Latvian securities.
Government bonds | |||
Beneficial owner | Relief at | Quick | Standard |
Non-resident legal entity | Yes | No | No |
Non-resident legal entity resident in a tax heaven country | No | No | No |
Non-resident individual | Yes | No | No |
Non-resident individual resident in a tax heaven 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 | No |
Corporate bonds | |||
Beneficial owner | Relief at | Quick | Standard |
Non-resident legal entity | Yes | No | No |
Non-resident legal entity resident in a tax heaven country | No | No | No |
Non-resident individual (if it constitutes interest from publicly traded financial instruments) | Yes | No | No |
Non-resident individual, if:
| 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 | Quick | Standard |
Beneficial owner | Tax Rate | ||
Non-resident legal entity | Yes | No | No |
Non-resident legal entity resident in a tax heaven country | No | No | No |
Non-resident individual (profits earned after 31 December 2017) | Yes | No | No |
Non-resident individual, if: - resident in a tax heaven 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 | Quick | Standard |
Beneficial owner | Tax Rate | ||
Non-resident legal entity | Yes | No | No |
Non-resident legal entity resident in a tax heaven country | No | No | No |
Non-resident individual (profits earned after 31 December 2017) | Yes | No | No |
Non-resident individual, if: - resident in a tax heaven 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 LuxCSD 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.
LuxCSD 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 process 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 LuxCSD on securities held in LuxCSD. 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 LuxCSD on securities held in LuxCSD. Stamp duty may however be payable on specific transactions. LuxCSD does not provide assistance in this regard. Please consult your tax advisor for further information.